DRUVAN - Metal age in Dragsfjärd

The Economic Consequences of Multidimensional Development of Human Capital by Using the Metal Age Method in a Finnish Municipality Background Due to an increase in sick-leave and early retirements among the 190 employees, the council of the small Dragsfjärd municipality in Finland, decided unanimously on starting a 3-year DRUVAN-project. The annual investment in occupational health services (OHS) increased from 20 to 405 Euro/employee. A multidimensional Human Capital Development (HCD) model was modified from the local steel industry (Metal Age). Research question The aim was to explore the economic consequences of a large-scale increase of HCD. Attention was paid to what types the consequences are of and through what mechanisms they occur. Method The multidimensional HCD model is a process, which continues throughout the whole working life from recruitment to retirement including health checkups, rehabilitation courses, medical treatment, ergonomics, work place analysis, physical activities and intoxicant programs. The expert advice given by the OHS personnel to the management is an important part of the DRUVAN project. The development of the work content and work community is based on a systematic use of the Metal Age method for participatory planning for increased well-being, work ability and total productivity. Results The benefits exceed already after two years clearly the costs for the multidimensional OHS. The sick-leave % has decreased as follows: Year : Sick leave %: 2001 : 6,7 2002 : 5,7 2003 : 4,8 2004 : 5,0 The costs for early retirements also decreased. The personnel questionnaire index indicates, that the employees in the municipality of Dragsfjärd compared with other employees are more satisfied with their situation at work. A Cost-Benefit Analysis was made by using the Potential Model. The analysis shows that there was a 78 % annual return on investment as a result of the project. The Work Ability Index was measured for all employees before and after the intervention. An analysis of the index data showed that the age-determined variance of the index almost disappeared in the Dragsfjard municipality. The long term economic consequences of this would be significant if the project would continue and extended to the whole country. Funded by: Municipality of Dragsfjärd, Social Insurance Institution of Finland, Finnish Work Environmental Fund, Ministry of Social Affairs and Health Collaboration partner: Ove Näsman, MD, Dalmed OyAb