Trends in workers' compensation: How safe is your hybrid workforce?
There are safety risks for businesses associated with remote workers, like cybersecurity issues, non-ergonomically friendly workspaces, mental health concerns and more.
Workers’ compensation insurance protects businesses and their workforce by providing benefits to employees who are injured on the job. These benefits can cover the costs associated with the injured employee’s medical care, address retraining costs and cover lost wages until the employee can return to work. The benefits can also compensate the employee for permanent disability if needed.
However, does workers’ compensation cover employees who are injured if the incident occurs somewhere other than the business’s physical location or job site? Many employees today enjoy the convenience and flexibility of a hybrid work environment that allows them to switch back and forth between working remotely and working on location throughout the workweek. While many employers started offering a telecommuting option several years ago, the popularity of hybrid or remote work grew during the COVID-19 pandemic, when many states had shelter-in-place or stay-at-home orders set to help prevent the spread of the virus.
What does this newer hybrid model mean in regard to workers’ compensation claims? What types of new challenges are insurance carriers experiencing with a hybrid workforce? And how can employers help to reduce the risks hybrid employees face?
Workers’ compensation challenges with a hybrid workforce
According to a Gallup poll, in early 2019, approximately 32% of the workforce was hybrid. This percentage decreased at the start of the coronavirus pandemic in early 2020, with 18% of the workforce being hybrid and 70% being exclusively remote – the highest percentage of fully remote workers over the last four years. As of February 2023, the hybrid model has increased to 52%. Many employees prefer this hybrid model, especially when the employer is remote-capable and the job they perform can be easily executed off-site. In fact, many employees state that if the option to work remotely was eliminated, they would actively seek other employment.
Although the COVID-19 pandemic has been under control and is considered to be ending, the popularity for employers to continue to offer a hybrid workplace model has endured. However, while employees enjoy the benefits of working remotely in this hybrid model, which include saving money and stress on a daily commute, more time to be with their families and less reported burnout, challenges do arise for some employers. There are various safety risks for businesses associated with remote workers, such as cybersecurity issues, non-ergonomically friendly workspaces, mental health concerns and more.
A closer look at the workers’ compensation challenges a hybrid workforce faces:
- Ensuring a safe remote workspace: No matter where their employees work, whether it’s in their homes or the office, employers need to ensure they have a safe environment. Employees may need training and resources on how to work safely at home. Many home offices may not be the most ergonomically-friendly spaces which could lead to issues like muscle strains or carpal tunnel syndrome.
- Establishing where the accident or injury occurred: When an employee suffers an injury while performing work remotely, it might be difficult to determine whether the injury took place while they were actually on the clock. It could also be a challenge to understand if they were injured during the course of their employment.
- Increased mental health issues: While remote work offers numerous benefits to employees, for some, a lack of social engagement and support could lead to mental health concerns such as anxiety or depression. In some states, workers’ compensation programs have recently shifted to consider the injured worker’s physical and mental health along with their social environment to create more personalized treatment plans for injured workers. However, workers’ comp may not cover mental health issues unless they are proven to be directly related to their job duties.
- Efficiencies within the claims process: Some workers’ compensation claims for hybrid workers may need to be handled remotely, which may slow down and complicate the process. It’s important for an employer who offers a hybrid model to consider implementing newer technology that makes it easier to manage claims.
- Return to work: Working in a hybrid environment may pose challenges to individuals returning to work with restrictions following an injury. Employers may not be able to offer the right types of transitional duties, and they may also experience issues managing the individual to ensure they are staying within their work restrictions.
Hybrid workers and common workers’ compensation claims
Workers’ compensation laws vary by state, but in most cases, a remote worker would be covered by a business’s workers’ compensation insurance policy. Four of the most common workers’ compensation claims seen for hybrid workforces include the following:
- Repetitive strain injuries: Workers sitting in the same position, typing on a computer or using a mouse for long hours can suffer musculoskeletal disorders (MSDs) due to overusing the same muscle groups, having bad posture and completing repetitive tasks.
- Ergonomic injuries: Similar to repetitive strain injuries, if employees do not have a proper ergonomic setup in their home, they could experience back pain, neck pain or carpal tunnel syndrome, which would be covered under workers’ compensation.
- Transportation accidents: According to what is known as the “coming and going” rule, normal workday travel to and from the workplace is not covered by workers’ compensation in most states. However, when a hybrid employee travels as part of their normal workday duties, such as to visit a client or vendor, and has an accident and is injured during that commute, that would be covered by workers’ compensation.
- Mental health conditions: The uncertainty many individuals felt during the COVID-19 pandemic led to mental health issues and increased levels of anxiety and depression. Balancing life and work can become a challenge for hybrid workers, who may work longer hours or feel isolated from others. The Centers for Disease Control and Prevention (CDC) reports that depression interferes with a person’s ability to complete job tasks about 20% of the time and reduces cognitive performance about 35% of the time.
Top strategies for managing workers’ compensation claims for hybrid workers
How can employers ensure their hybrid workforce keeps safety in mind regardless of where they are completing their daily duties? One of the top best practices is to establish protocols for working from home that will help to mitigate the possible risk remote workers face.
A few tips for reducing workers’ compensation claims for a hybrid workforce include:
- Implement a remote work policy. Employers must set clear expectations for hybrid workers from the start. When not working in the office, employers should establish guidelines for remote work that include the employee’s work schedule, their expected availability, how often to communicate with managers, how to report any personal injuries and more. Employers should also regularly test the policy to evaluate its effectiveness.
- Have employees create a dedicated, safe workplace. Hybrid employees may not have a room in their home that can be a designated office and only an office. While this is generally fine, improperly designed home workspaces could lead to injury risks. For example, sharing a workspace with a partner, a child doing homework or pets can be awkward and distracting, while also most likely not being ergonomically friendly. Employers should also consider scheduling regular inspections of employees’ home offices to ensure it is safe and suitable for efficient work habits.
- Teach injury prevention. All hybrid employees should have a clear understanding of how to prevent injuries both at home and at the physical workplace. Employers should create a safe workspace checklist that addresses possible injury risks, such as keeping floors clear of tripping hazards like cords, file drawers and rugs, keeping electrical plugs in good working order, having an ergonomically correct desk and chair, adequate lighting and more.
- Establish normal business hours. It can be common for hybrid employees to work long hours or off hours when they are outside of the office. Working from home with no commute makes it easy to log on and complete some tasks at any time of the day, even the middle of the night should an idea strike them. Employers should set designated work hours to ensure employees are getting the breaks they need to make their personal lives a priority.
- Keep lines of communication open. Employees should be encouraged to stay in touch with others, including their managers, via Teams, Skype, email, phone or other messaging services not only to avoid feelings of isolation, but also so management can stay on top of any issues they may be having safety-wise.
There’s no doubt that hybrid workforces are here to stay. Employees will continue to seek the improved work/life balance telework can provide them. However, the risks for potential workplace injuries and workers’ compensation claims will not be eliminated just because a worker is not physically at a job site — and these risks could be even more complicated. Employers who keep the safety of their employees top of mind, no matter their working arrangements, will be set up for success in the long term.
Matt Zender (Matthew.Zender@amtrustgroup.com) is senior vice president and Workers’ Compensation Product Manager for AmTrust Financial Services. He manages the WC Product line and strategy.
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