Reducing the Employees Cost of Health - Research Paper Example

Formal report Table of content Letter of transmittal …………………………………………………………. 3 Overview …………………………………………………………………… 5 Executive summary ………………………………………………………… 7 Introduction ………………………………………………………………… 7 Background information ……………………………………………………. 8 Problem statement …………………………………………………………… 9 Scope …………………………………………………………………………. 9 Limitation of study …………………………………………………………… 9 Data collection method ………………………………………………………... 10 Discussion …………………………………………………………………… 11 Summary, conclusion and recommendations ………………………………… 16 References …………………………………………………………………….. 21 Associate Vice president Sparkle Industries April 4, 2013 Audra Broadway, President Sparkle Industries Dear, Ms Broadway, Herein are the recommendations that you asked me to come up with in a view to address the increased insurance cost within the Company, because of increased drinking and smoking amongst the employees. As requested, I was able to constitute a committee made up of employees from different department within your company. To effectively reduce the employees’ cost of health, the committee recommended the following: 1. Establish objective policies 2. Health information dissemination 3. Ensuring employee participation 4. Provision of useful resources 5. Reducing stress levels of employees The company needs to establish rational policies, which prevent employees from drinking or smoking at the workplace. The policies should be made in a participatory way in order to hold every individual accountable. Employees need to know that it is an offense to smoke or drink within the boundaries of the workplace. However, they should not feel as though the company is punishing them. This is why they should be included in the policy making to prevent such misconceptions. The company ought to be clear on rewards and punishments as a way to control smoking and drinking. Most employees fail to take care of their health for lack of information. Books, movies, and seminars should be availed to enable employees get the information required for change of behaviour. The company should consider using the services of experts in dealing with critical issues such as smoking and drinking prevention programs. Putting employees in darkness about what is happening within the company creates a sense of isolation and powerlessness. This is especially if they are not included in the decision-making within the company. This may kill their morale about work and become victims of alcohol to fight their frustrations. As normally said, ‘work and no play make jack a dull boy.’ Employees need to have activities that enable them to unwind. These include gym and other exercising equipment. Employees can use them over lunch break to exercise. Other resources include programs that might assist employees to stop drinking and smoking. Ensure that food eaten within the workplace is healthy to prevent the lifestyle complications. Finally, managers are also trained to detect problems in employees and address them instantly. There is a positive correlation between stress and drug use amongst the employees. For that reason, it would be imperative to ensure that employees are trained to cope with stressful situations. To ensure employees are not stressed, the company should ensure favourable working conditions. If possible, the company should create an employee and family assistance programs. Professional help is offered not only to the employees but also to the family members. It is my hope that if all these recommendations are put into action, the cost of health will plummet drastically. Yours sincerely, Associate Vice chairman. Overview of the research Executive summary Under this section, the summary and highlight of all what the research is about is given. The author states what the research entails, the problem statement, methodology used, results, recommendations and conclusion. Overview In this section, the general aspect of the problem is stated and how it has affected the organization in question. The section also introduces what is expected in the rest of the research including the research methodology and results. Background information This section focuses on the global, regional, and local view of the problem in hand. It discusses amongst other things what the world’s view of a given problem. A comparison is made between the past studies and the current one. The researcher may criticize the works of other researchers based on a number of issues such as the methodology used and sample size. In this section, references as a way of recognizing the works of other researchers. Problem statement This is a section where the problem in question is stated clearly in sentence form. It is written in a way that once an individual reads, they understand what the research is all about. Scope (factors) This is the section where the researcher has provided the factors that cause or are related to the problem in question. Factors such as stress levels, lack of strong and effective policies and organization culture have been provided. Limitation of study The shortcomings of the study are provided under this section. They include false and inconsistent responses and time constraint. These weaknesses have been blamed for interfering with the research. Data collection This section focuses on the methods that were used in the collection of data. For the purpose of this study, both the questionnaires and interview schedules were used. They are preferred because of their simplicity and effectiveness. Discussion This section borrows widely from the research results. It expounds them by borrowing from literatures of past researches. It contains diagrams that assist in analysis and expressing information in a simple way. Recommendations, summary, and conclusion Under these areas, the suggestions of solving the problem in question are provided for, under the recommendation section. A summary of the whole research is made, while a conclusion stating the main points is also expressed. 1. Executive summary Drinking and smoking in the Sparkle Industries has increased the health insurance cost, therefore becoming a major problem. This has increased the cost of operation for this company to unbearable levels. This prompted the company president to request for a study with a view to find a lasting solution to the problem. Drinking and smoking to a great extent are symptoms of stressful and depressing moments that employees go through. primary and secondary data indicated that factors such as unfavourable working conditions, isolation of workers at the place of work, low pay, lack of enough time to rest and job insecurity could lead to increased anxiety, stress and depression amongst the employees. The use of alcohol and smoking may be a defence mechanism to address the psychological and emotional problems. However, these behaviours lead to increased cost of operation in companies, which is a great disadvantage. To address these issues, the committee conducting the study provided several recommendations. Information dissemination, use of objective alcohol and smoking policies, employee participation in major decision-making, improving the working conditions and providing necessary resources to deal with psychological and emotional problems in employees are some of the recommendations by the committee. 2. Introduction (Overview) With the increased cost of health insurance due to drinking and smoking by employees, objective recommendations to address the problem become imperative. Sparkle Company is one of the companies that have been affected by this social problem. As a result, a study was conducted with a view to seek measures to mitigate the issues. Both primary and secondary methods of data collection were used. In the former category, questionnaires and interview schedules were used. Questionnaires are preferred due to the fact that they are simple to construct and to use amongst the subjects. On the other hand, interviewing assists the researcher clarify information obtained from the subjects before it can be recorded. From the results, it was observed that about 41% of the employees drank alcohol occasionally while 13% every day. On the other hand, about 30% of the employees indicated that they smoked. According to the statistics from the Sparkle Company, about $800 is spent on every employee on matters of health. 3. Background information Alcoholism and smoking has become a global phenomenon-affecting individual regardless of their race, gender and socioeconomic status. According to the National Institute of Alcohol Abuse and Alcoholism (NIAAA), millions of people in the United States have become victims. It is estimated that about 14 million people drink in that country alone (U.S. Department of Health and Human Services 1999). With statistic, indicating that the government spends between $ 33 billion and $ 69 to treat diseases related to alcohol, several efforts have been taken to control this social problem (U.S. Department of Health and Human Services 2001). Drinking has extended to the work place, creating a number of problems. Studies indicate that absenteeism is likely to be more than 4 times in employees who drink at the work place. Closely related to this problem is smoking. It has become a major problem with statistics indicating that the United States and United Kingdom spend $96 billion and $9.6 billion to treat individuals with smoking related problems (Uekermann 2008). Smoking in the working place does not only affect those who smoke but also those employees who do not smoke. They may inhale these fumes affecting their health. The increased number of cancer patients has also been attributed to the increased smoking amongst the employees and the rest of the population. This has an effect of increasing the health insurance cost, leading to in significant rise in the cost of operation. Several factors such as weak alcohol and smoking policies, the working culture and low level of supervision have been blamed for this social problem. Employers are advised to focus on a number of signs and symptoms to tell whether employees are involved in consumption of alcohol and cigarettes. These include consistent absenteeism, missed and incomplete deadlines and work, poor relationship with other colleagues and antisocial behaviour. 4. Problem statement Alcoholism and smoking at the work place increases health insurance cost, increasing the cost of operation in companies. 5. Scope (Factors) Various factors such as lack of proper supervision, poor working conditions, the working culture and availability of alcohol and cigarettes contribute to the social problem in question. Long working hours and low pay for instance contribute to increased stress levels amongst the employees. This may prompt them to use alcohol and smoke to address their frustrations, stress and depressive conditions. If the culture of the working environment support these social behaviours, drinking and smoking is likely to perpetuate. 6. Limitation of study These refer to the factors, which may have affected conducting of a comprehensive study. Such limitations may interfere with the reliability and validity of the research. The main limitations in the study were time and biased responses. The time provided for this study was not enough to study amongst other things the behaviour of employees who were under the influence of alcohol. For testing for consistency and credibility of responses provided by the employees, there was need to study their behaviour in their natural setting. This would however take more time than was provided for by the company president. For that purpose, it was not possible for the committee to confirm whether the information provided by the subjects was credible or not. Secondly, comparing the responses of the subjects and their previous behaviour, the committee saw many discrepancies. While some of the employees were taking alcohol on a daily basis, they indicated that they only drank occasionally. This biased information and falsehood made the research weak to a great margin. Most of the employees were known to the researchers and therefore is would be easy to tell when they were lying. This biased information may make it difficult to address the problems of alcoholism and smoking at the work place. 7. Data collection Primary and secondary sources of data were used in the research. To facilitate the former category, questionnaires and interview schedules were used. Questionnaires were selected due to their simplistic nature and accuracy. The subjects were expected to respond to a ‘yes’ or ‘no’ answers. One of their main advantages of questionnaires is that many subjects can respond at the same time. They therefore make the process of research easier and use less time. On the other hand, interview schedules were also used to collect primary data. Each subject was interviewed at a time and the responses recorded. Interview schedules are better since they enable the researcher obtain more information. In addition to that, they enable the researcher to clarify issues before they can be recorded. They allow however, interviews can be both time consuming and expensive. Secondary data was also used for the purpose understanding this social phenomenon from a wider perspective. Data was collected from the internet and materials such as books and journals. The aim was to compare the study conducted by the committee with that of other scholars. Discussion The issues of drinking and smoking amongst the employees are a common phenomenon in many institutions. With the increased demand to perform and low remunerations, most employees find themselves trapped in these social problems. Smoking affects not only the smokers but also other employees. Smoking is one of the most dangerous habits that should be prevented in the working place. In the United States for instance, it is estimated that about 443,000 victims die annually (Centers for Disease Control and Prevention 2004). In addition to that, it is the main contributor of cancer in both men and women, at 90% and 80% respectively (Marinkovic 2009). It is said to cause more deaths than that of people with HIV/Aids, suicides and murder put together. Compared to men and women who do not smoke, the smokers are at a higher risk of contracting some of the most dangerous diseases. For instance, is indicated that men are 23 times likely to develop lung cancer. This is compared to about 13 times in women, women who are likely to get it through smoking. These numbers are high and alarming especially in the employment sector. Unless controlled, the employers will be required to increase continue recruiting other new employees quite frequently. It also leads to cardiovascular diseases, which has become one of the leading causes of deaths not only in the United Kingdom but also in the United States. In pregnant women, it is known to cause adverse health effects. For instance, it has been blamed for stillbirths, low birth weights and sudden infant death syndrome. Compared to women who do not smoke, the smokers are at a higher risk of having bones, which are of low density as well as fractured joints. Smoking has therefore become a major problem in the society and therefore deserving attention. However, drinking in the working place has also been said to be a major issue. It contributes to many problems including impaired judgement, violence at the place of work and absenteeism. This may further affect the quality of work and productivity within the working environment. It is however mostly caused by stressful and depressing situations that most of the employees may find themselves in. however, it is a genetic problem that can be inherited. However, this assertion is debatable since most experts believe that the environment is the main contributor to this problem. It is the habit that people are involved in that is the main cause of the problem. Apart from the challenges it poses at the place of work, it has also been attributed to a number of other issues. It is the major cause of domestic violence and abuse of children, industrial accidents, road accidents and suicides. It can therefore be dangerous if employees are encouraged to continue drinking while they are supposed to be providing their services at the place of work. Some of the major problems with drinking include tolerance and dependence. In the former category, they feel less effect when they take same quantity they took before. This means that such people will continue to increase the amount they drink until when they can achieve the feeling. This on other hand will have both the social and economic implications. On the other hand, dependence means that the affected individual cannot work or be productive unless they are under the influence of alcohol. This is one of the most dangerous point in the sense that such employees will have to drink almost daily to be able to carry out their duties. On the other hand, drinking causes other major problems in such people. It the major cause of heart damage, blood pressure and liver diseases. The affected individuals are more likely to suffer from stroke that those who do not drink. There is also a high chance that such people will have poor concentration and memory problems. In the place of work for instance, such individuals may not be able to remember certain important details required at the working environment. This may cause a big loss to the institution. It may also result in the cancer of the digestive system. This has been common in many people. Though lifestyle diseases, which may be caused by other factors such as the kind of food, one eats, it may also contribute to another problem. It may also cause reduced fertility and increased infertility. As indicated therefore, drinking does not only affect the person but also other people who are in close contact with them. The increased domestic problems are as a result of this problem. It therefore needs immediate consideration and focusing on lasting solution. In Sparks industry, majority of the employees are affected by smoking and drinking problems as indicated from the below statistics. This is a major problem and blow to the industry performance. With the number of the employees demonstrating this problem likely to increase, there is need for major steps to be taken to control the problem. Table 1 represents the percentage of employees under influence of cigarette smoking Diagram 1 the pie chart below represents the employees under influence of smoking From the above figure, it is clear that the employees in this institution have a major problem. Majority of them are smokers. This is represented by 42% of the employees who indicated that they did actually smoke. With only 25% of the employees strongly condemning smoking, it means that the institution may face major health challenges. The health insurance cost is likely to soar to unmanageable levels. The industry may therefore be rendered unsustainable by such increased cost of health. With the problem likely to get worse, it will be imperative that proper measures are taken to contain the situation. Some of these employees may be experiencing the problems that have been highlighted before. This includes and not limited to lung problems and other cardiovascular diseases. These are expensive health problems to deal with and contain. Table 2 represents the percentage of those who indicated that they drank alcohol Diagram 2 graph This company is facing one of the biggest nightmares that any company may be facing. As indicated from the above figure, it is outright that the number of people drinking occasionally is on the increase. With the people who drink occasion at 41% and that of those drinking daily at 13%, this has become a culture in this industry. It needs to be addressed immediately before other complications can be witnessed. For instance, from the statistics, it appears as though every individual is affected. This is explained by the fact that other 38% of the employees said that they drunk socially. However, it is imperative to note that most of the people begin to drinking socially before becoming a major issue. Stress and depression are some of the main causes of drinking and smoking in this institution. From the above figures, the company is facing some of the major problems. The situation needs to be addressed immediately before the problem can escalate to unmanageable levels. The main loser will be the industry in the sense that it will be required to continue incurring increased cost of treating major ailments. On the other hand, the employees will continue suffering not only from the health issues but also from a social perspective. At the family level for instance, such employees are likely to have dysfunctional families. Child abuse and other forms of domestic violence are high in families of people who drink. It will therefore be imperative if this problem is addressed and contained before it can lead to other major problems. Summary, conclusion and recommendations From the above status, it is imperative to address the problem immediately. Sparks industry is facing one of the major problems that need attention from the management. The company has been paying increased health insurance cost of about $800 per employee annually. This amount is so high that the industry thinks it is unsustainable. Going by the above statistics, it is imperative to note that the number of employees with the drinking and smoking problems is likely to increase. This is based on the fact that the figures indicate that the people drinking for leisure are also high. This means that such individuals are also likely to become addicted as this habit continues. The industry is therefore facing a problem like many other firms in the world. Smoking is a major problem not only on the health of the smokers, but also other people. At the place of work for instance, the smokers may also cause health problem to non-smokers. The latter are more likely to be affected in the sense that they smoke indirectly and may be exposed to the similar health problems. Smoking has been one major cause of death in the world, with the United States and United Kingdom being some of the major affected regions. In such countries, the governments have been spending increased more funds to treat individuals with health issues. It is the major cause of many types of cancers including the lung and the throat cancers. Apart from that, it has also major effect on women especially those who are pregnant. For instance, it is said to contribute majorly on stillbirths, low weight births and preterm births. On the other hand, drinking has also been a major problem at the work place. In Sparks for instance, the major problem has been that the increased number of employees who have been drinking. This has become a major cause of the increased cost of health insurance. It is also the major cause of domestic violence and other disruptions at the place of work. For instance, the problem has been associated with the increased problems at the working environment. For instance, it has been said to be the major cause of accidents in most industries. Apart from that, it leads to loss of memory and concentration amongst the employees. This affects the quality of work that such individuals can provide at any given time. It is therefore imperative that the problem is contained to reduce the cost of health. There are however major causes of this problem. One includes lack of objective policies that can control drinking and smoking at the work place. Even in companies where such policies are present, the implementation has become a problem. The laxity from management has encouraged such people to continue drinking and smoking. This therefore becomes part of the employment culture, which is difficult to control. For this problem to be contained, it will be imperative for the company management to ensure that all the employees adhere to such rules. Increased stress levels, lack of incentives and lack of information have also been other major contributors to the increased levels of drinking and smoking. With many companies considering reducing the cost of operation, majority of the employees have been affected. This is because they are not only overworked but underpaid. This has been the main source of stress levels amongst such employees. Further, lack of dissemination of health information to most of these employees has also contributed immensely to the problem in hand. For that reason, it will be imperative that the industries focus on providing the employees with resources than can assist them in addressing the problem in hand. This will include providing them with information through the help of counsellors and other professionals. Establishment of a good working relationship and communication between the employees and employers may also become a major issue. Communications assists in addressing the issues that affect the employees at the place of work. When the employees’ problems are addressed in the most objective way, the stress levels are likely to reduce. This on the other hand, is likely to reduce the rate of drinking and smoking at the place of work. The following recommendations will play a major role in addressing the problem. 1. Establish objective policies The company needs to establish rational policies, which prevent employees from drinking or smoking at the workplace. The policies should be made in a participatory way in order to hold every individual accountable. Employees need to know that it is an offense to smoke or drink within the boundaries of the workplace. However, they should not feel as though the company is punishing them. This is why they should be included in the policy making to prevent such misconceptions. The company ought to be clear on rewards and punishments as a way to control smoking and drinking. 2. Health information dissemination Most employees fail to take care of their health for lack of information. Books, movies, and seminars should be availed to enable employees get the information required for change of behaviour. The company should consider using the services of experts in dealing with critical issues such as smoking and drinking prevention programs. These experts may include the psychologists or clinical psychologists with the ability to deal with emotional and psychological disorders. These people have the ability to prescribe the drugs that an individual should use to deal with the situation. As indicated before, some of the causes of increased costs within the company have been increased lifestyle diseases. These are diseases suffered by people because of the type of food they eat and lack of exercises. With the majority of employees resorting to junk food, the cost of health insurance is likely to keep increasing. Information on health eating should therefore be provided to all the employees. Professional nutritionists should be invited once in a while to provide such information. The company on the other hand should avail health food to the employees as a sign of commitment in achieving this goal. There is a direct correlation between exercises and good health. This is the main reason why the company should avail such information to the employees. The company should support this initiative by providing the employees with the equipment as well as instructors. Majority of employees are however ignorant of the importance of exercises and improvement of their health. Accumulation of fat in the body due to lack of exercises leads to various heart diseases. Recent research also indicates a correlation between cancer and exercises. Doing exercises daily has the ability to assist individuals mitigated cancer. This is important for the company owing to the fact that such diseases can cost a lot of money to treat. 3. Ensuring employee participation Putting employees in darkness about what is happening within the company creates a sense of isolation and powerlessness. This is especially if they are not included in the decision-making within the company. This may kill their morale about work and become victims of alcohol to fight their frustrations. Ensuring that all the employees are part of the company makes them identify with their work and the company. They feel accepted and part of the company. Communication becomes imperative since it assists the employers to understand the psychological and emotional status of the employees. Employers ought to be friendly when dealing with such individuals. They ought to address such psychological problems in a professional way so as not to disclose such information to third parties. 4. Provide relevant resources and support As normally said, ‘work and no play make jack a dull boy.’ Employees need to have activities that enable them to unwind. These include gym and other exercising equipment. Employees can use them over lunch break to exercise. Other resources include programs that might assist employees to stop drinking and smoking. Ensure that food eaten within the workplace is healthy to prevent the lifestyle complications. Finally, managers are also trained to detect problems in employees and address them instantly. 5. Reduce stress levels There is a positive correlation between stress and drug use amongst the employees. For that reason, it would be imperative to ensure that employees are trained to cope with stressful situations. To ensure employees are not stressed, the company should ensure favourable working conditions. 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