Economic impacts of workplace disability management in a public enterprise

Arto Reiman, Guy Stefan Ahonen, Pirjo Juvonen-Posti, Tiina Heusala, Esa-Pekka Takala, Matti Joensuu

Research output: Contribution to journalArticleScientificpeer-review

3 Citations (Scopus)

Abstract

This study analyses the financial impact of a recently implemented new work disability management system of a public in-house enterprise. The material was collected from the enterprises and city groups databases. A cost benefit model was utilized for the economic analysis of the period 2009 to 2012. The main costs arose from the investments on loss of production due to lowered production standards and on the work ability co-ordinators work. The main financial benefits came from the reduced pension costs and sick leaves. A traditional linear approach led to a 14% annual positive return on investment. A non-linear cost assessment approach led to a 4.7-year pay-back period, followed by a 175% return on annual investment over the following years. The results support a long-term approach to assess the financial impact of workplace disability management.
Original languageEnglish
Article numberIJPSPM-169474
Peer-reviewed scientific journalInternational Journal of Public Sector Performance Management
Volume3
Issue number3
Pages (from-to)297-310
Number of pages14
ISSN1741-1041
DOIs
Publication statusPublished - 31.07.2017
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Financial impact
  • Case study
  • Organisational management
  • Work disability prevention
  • work disability management
  • Strategy
  • Savings
  • 314,1 Health care sciences
  • work place
  • Disability
  • Sick leave

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