Oh, the irony. For many years, occupational health was viewed as a compliance-driven operational necessity — a mechanism for managing worksite injury and illness and meeting medical surveillance requirements. The perceived importance of the investment in occupational health was often proportional to the size of the on-site clinic, which all too often was a modified broom closet.
More recently, many organizations have recognized the value of looking at employee health through a wider lens, realizing that present, productive and healthy employees have a positive impact on the company culture and the bottom line. Modern employers have proactively invested in employee health, expanding beyond compliance to address primary care, chronic disease management and overall health and wellness — including mental health. Often, new on-site employee health clinics resemble the most modern physician practices.
But it is the COVID-19 pandemic that is shining a bright spotlight on the absolutely critical importance of a strong occupational and employee health function — including a robust health information technology infrastructure.
According to Environmental Health and Safety (EHS) analytics firm Verdantix, the global spend on industrial hygiene and occupational health (IH/OH) software is expected to reach $253 million in 2020, with OH software comprising $152 million or 60 percent of the total. Verdantix projects the global spend on IH/OH software will grow at a CAGR of 9.7 percent to reach $403 million in 2025.
While the short-term effects of the COVID-19 pandemic will likely moderate growth rates in 2020 and perhaps 2021, the Coronavirus outbreak underscores the value of a strong digital infrastructure to support occupational and employee health programs and should set the stage for more significant downstream growth potential. The “H” in EHS just became far more important, and Verdantix projects IH/OH software market growth rates of 6 and 7 percent for 2021 and 2022 respectively, with an increase to 11 percent in 2023 and 2024 and 12 percent in 2025.
We are seeing this firsthand in the Enterprise Health client community, as the medical directors, physicians, nurses, administrators and other medical professionals who use our employee health applications are on the front lines of managing COVID-19 response. On-site employee clinic operations at corporate, health system and government agency clients have temporarily shifted their primary focus to monitoring employees for COVID-19 symptoms, managing return to work, deploying testing regimens, conducting telehealth visits and putting contact tracing mechanisms in place.
...the folks in human resources who have been trying to manage employee return-to-work are realizing they need the assistance of their on-staff medical professionals.
While this may be seen as all in a day’s work for many occupational health professionals, organizational domains from HR to production to the C-suite are developing a newfound appreciation for the important role that occupational and employee health should play. The clear consensus from the top is that core occupational health services are here to stay and a key component of employee safety and retention strategies. Keeping employees present, productive and healthy is no longer a health promotion slogan displayed on posters in the employee health clinic — it is an organizational imperative for businesses that have been deeply affected by slowdowns and shutdowns resulting from this pandemic.
We recently discussed the increased attention on employee health with the Enterprise Health advisory board, an external group of occupational health professionals who provide strategic direction to our organization. As one member pointed out, there is now recognition at the local level that employee health does more than recommend that you eat less salt. Unexpectedly, COVID-19 has created a Super Bowl for occupational health.
As another advisory board member put it, the folks in human resources who have been trying to manage employee return to work are realizing they need the assistance of their on-staff medical professionals. Employee health operations has the clinical expertise to do things like appropriately reintegrate people with underlying conditions back into the workplace.
COVID has demonstrated to our leadership how woefully inadequate our employee health IT infrastructure is and the need to invest in better technology.
We are seeing similar interest among the organizations in our prospect pipeline. When the coronavirus first hit, most of our prospects politely informed us they were up to their eyeballs in dealing with the pandemic and they would re-engage once they came up for air. In the last month or so, these employers are reaching back out, asking if they can quickly deploy our COVID-19 functionality and implement the balance of our solution later. These prospects are sharing tales of attempting to manage their employee populations on paper, spreadsheets or hijacked applications not suited to the task, only to quickly realize these makeshift solutions will not scale.
As the employee health director at one large health system explained, “I am almost glad that COVID came along, as it has demonstrated to our leadership how woefully inadequate our employee health IT infrastructure is and we now recognize the need to invest in better technology.”
Therein, however, lies the rub. While recognition and appreciation of the value of occupational and employee health are high, making the business case for increased investment must be done at a time filled with economic uncertainty. While there may never be a better time to make the case, justification will need to expand beyond a return on investment analysis to a value of investment calculation.
While budgets are under intense scrutiny, the coronavirus pandemic has money tied to it in myriad ways that command the close attention of those who matter. Occupational and employee health leaders must be prepared to make a better business case for increased investment in programming and the digital infrastructure to support new initiatives. Potential better business case elements include: