Canadian HR Reporter

CANADIAN HR REPORTER CANADIAN HR REPORTER April 7, 2014 April 7, 2014 12 FEATURES FEATURES "Augmented reality could help with telemetric data used by peo- ple driving big machinery and ve- hicles," says Van Zorbas, manag- ing partner at Deloitte in Calgary. Whether the information is dis- played on a lens or another kind of AR screen, access to critical information such as oil pressure, temperature and other details could prevent machinery break- downs, potentially saving hun- dreds of thousands of dollars in lost productivity. " at's something that oil and gas and traditional mining in- dustries are looking at right now, and that's one of the things that's closest to being a reality too," says Zorbas. One more potential upside to the technology is greater acces- sibility for formerly marginalized employees. "Where it's going to make a dif- ference is in our ability to train and to employ handicapped people who may have been pre- cluded from certain types of work because they didn't have the manual dexterity to do it or there was some kind of impediment," says Jones. Not all rose-coloured However, there is a downside to just about every new and promis- ing technology. "Anytime you have a new tech- nology of any sort, somebody's going to say, 'I'm never doing that, that's wrong, that's invasive,'" says Jones. But, eventually, the dust settles and new technologies be- come commonplace. "Remember just a few years ago when cellphones fi rst took pictures? You would have thought the world was coming to a crashing halt," she says. "Every- one was so worried about the violations that were going to take place." Privacy and security issues are top-of-mind for many organiza- tions considering Google Glass and other wearable AR. "Already some Atlantic City ca- sinos have banned Google Glass… because you could be sitting at a poker table and using software that's digitally counting your cards for you," says Saltzman. Some bars have banned Google Glass from their premises, too, to protect patrons from being fi lmed without their knowledge. Uphill battle? For some organizations, believing in the technology and its ability to enhance operations will be an up- hill climb. "Traditionally, oil, gas and min- ing haven't been early adopters because of the nature of their in- dustries," says Zorbas. "So layering in a new technology to be more productive is a mindset shift." One of the biggest challenges for those organizations will be believing these technologies really can propel productivity, he says — and fi rst-hand experience may be what fi nally seals the deal. " ey'll have to see it, feel it, touch it to understand how it works and how it will change the game." To encourage people to use the technology — and use it eff ective- ly — might require some training and a little persuasion. "If you're asking someone who's done a technical job for many, many years for the oil industry to suddenly adopt a new technol- ogy, how can you manage that change?" says Zorbas. "People in these roles often have a long tenure doing this kind of work. It's a particular chal- lenge when it comes to change management." Before diving in, HR would also need to establish policies for using the technology and iron out any potential legal concerns. "It's important for an organiza- tion to consider all the legal risks in order to make sure they feel comfortable from a compliance perspective if things go wrong… and to understand who's at fault and who's not," he says. Sticker shock It's still anyone's guess how quick- ly technologies such as Google Glass will become part of every- day business. Despite the hype, many experts predict a fairly slow adoption. "I don't think it will take off as quickly as some predict," says Saltzman. " e price point is still unknown. They're hoping for under $1,000 (per unit) but they don't know for sure." They also have to work out some issues with the battery life, he says, and the functionality is still limited because you have to have your smartphone with you. " ere are a lot of applications for the technology in the long run," says Saltzman. "But, in the short term, it will be reserved solely for early adopters with deep pockets." Melissa Campeau is a Toronto-based freelance writer. BENEFITS Reducing drug costs using behavioural science Strategies inspired by opt-in, opt-out approach of pensions By Michael Biskey T he health plan cost in- creases besieging Canadi- an companies are driven by many factors, including the availability of specialty drugs for treating rare and complex diseases. But the primary driver of drug cost infl ation is a lack of informed patient decisions — decisions employers have the power to infl uence. Each year, about $3.9 billion is lost to drug-mix waste associated with the use of higher-cost medications that generate no additional health benefi t, according to the Express Scripts Canada 2012 Drug Trend Report. Another $1.2 billion is wasted annually through patient deci- sions about where, how and when they fi ll their prescriptions. Prescription drug spending in Canada's private sector has dou- bled each decade: In 2012, $15.4 billion was spent on prescription drugs, up from $7.9 billion in 2002 and $3.2 billion in 1992. Far in ex- cess of infl ation, this cost burden is a drag on the competitiveness of Canadian companies. In total, one of every three dol- lars spent on prescription medica- tion in Canada is wasted — about $5.1 billion each year, according to the report. Of equal concern is the fact that 40 to 50 per cent of plan members do not take their medications ac- cording to their doctor's direc- tions, thereby worsening their conditions and adding costs for plan sponsors. 3 strategies to bend cost trajectory But it is possible to bend the cost trajectory by leveraging strategies to infl uence employees to make better, more informed decisions about their prescriptions. Here are three examples: Strategic interventions: Em- ployees are interested in saving money, both for themselves and for their plan. But they're often busy — they simply don't get around to making the necessary changes. One remedy is through the use of strategic interventions, informed by behavioural science, to ensure employees become ac- tively engaged in acting on their best intentions. As a result, costs can be reduced and outcomes improved. For example, when employ- ees are encouraged to switch to a lower-cost pharmacy offered through their employer, they're invariably enthusiastic but often don't get around to moving their prescriptions. Through active choice intervention, the provider can ask them about their choice of pharmacy. Employees can make a choice either way, without penalty, but if they haven't made the choice by a certain point in time, an adju- dication system can intervene to enforce the need for them to make a choice. Active choice strategies are in- spired by pension plan research which has proven that asking employees to opt out of a pension plan — rather than asking them to opt in — results in a much higher participation level, leading to vastly improved retirement sav- ings outcomes. If the default is to do nothing, most people tend to do nothing. But if there's an intervention in the decision process where the default is either "I want to do this" or "I want to do that," with no op- tion to do nothing, people are far more likely to align their actions with their intentions. Behavioural science-informed strategies result in greater up- take and engagement and better decisions overall from members. Even something as simple as the way a message is framed can help create alignment between inten- tion, behaviour and the desired outcome — better health for employees as well as sustainable health-care plans. Message-framing strategies: Various message-framing strate- gies can also be used to infl uence better decisions. For example, while employees are inspired by the opportunity to save mon- ey — for themselves and their health plan — using loss-aversion message framing is even more eff ective. People work harder to avoid losses than they do to seek gains, so when they hear "Stop wast- ing money" versus "You can save money," they are more likely to take action. Reminders support adher- ence: Rising rates of chronic dis- ease burden Canada's health-care system and undermine workplace productivity. One of the greatest challenges in the prevention and treatment of many of these condi- tions is non-adherence — patients don't comply with their doctor's advice and don't take their medi- cations as prescribed. Procrastination is a key cul- prit — often patients just don't get around to refilling their prescriptions or they forget. Fortunately, it's a problem that is easy to overcome. Patients can be sent reminders when it's time for a refi ll — and those reminders can include the number of refi lls they have remaining — to help ensure treatment continuity. Partners in health care In a perfect world, physicians would know the cost of each prescription, whether or not it is covered by the patient's plan and whether the co-pay is appropri- ate for the patient. But today, that information only comes to light after a physician has written the prescription, the patient has taken it to the pharmacy and the claim is submitted. Leveraging behavioural sci- ence will help employers infl u- ence members to make better decisions. Michael G. Biskey is the Mississau- ga, Ont.-based president of Express Scripts Canada, a provider of health benefits management services. For more information, visit www.express- scripts.ca. Newer technology could be considered invasive Newer technology could be considered invasive GOOGLE GLASS < pg. 11 Credit: Natykach Nataliia/Shutterstock

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