Formed in response to the avian flu threat of 2006, Securian Financial Group's Pandemic Task Force is currently monitoring the H1N1 outbreak and developing plans to make sure the company's critical functions continue. At the same time, it is helping associates prepare and stay abreast of the situation. The company's internal web site offers an FAQ, emergency supply list, updates on corporate policies relating to time off and medical leave and links to outside resources.
Gaining ground
Pandemic planning: Are you prepared?
On June 11, 2009, with more than 28,000 people worldwide sickened by the H1N1 (swine flu) virus, the World Health Organization (WHO) declared the outbreak a pandemic - its first in 41 years.
In addition to the public health threat a pandemic poses, it also poses a threat to the economic health of both private and public employers. Even before the recent outbreak, the World Economic Forum had estimated the economic impact of an influenza pandemic at around $500 billion, with most of the cost as a result of employee absenteeism.
Despite the fact that few employers could withstand abseentism of 15-30 percent among their workforce or suppliers, the vast majority have not taken steps to address the issue and put pandemic preparedness plans in writing. That could be a huge competitive mistake. Being unprepared not only carries the risk of financial loss, but also poses potential legal risks. Amin Mawani, associate professor of health industry management at the Schulich School of Business at York University in Toronto, argues, "To the extent that identifying and assessing pandemic risk becomes a generally accepted practice within the corporate community, those who are unprepared may be found to be negligent, and therefore liable to stakeholders, in the event a [widespread] pandemic occurs."
On the positive side, companies that can prevent absenteeism during a pandemic will be well-positioned to take market share from those who can't, Mawani reasons.
How can you prepare?
The exercise of preparing for a pandemic may seem like an overwhelming task to some firms, especially when resources are focused elsewhere in the current economic environment. But there is plenty of help available. The Department of Health and Human Services and the Centers for Disease Control, for example, have prepared a six-part checklist for companies, posted at pandemicflu.gov. The WHO and state departments of health are monitoring the situation closely and updating their web sites frequently.
In the event of any threat, it is senior managers' top priority to ensure the health and safety of associates. Given that employees are the primary profit drivers in most companies, it's not just the right thing to do. It also makes good business sense. Companies with a reputation for reliability have a competitive edge. Even if the current scare turns out to be a false one, employers who put their plans in motion now will be that much farther ahead for the next time around.
Resources
Amin Mawani. "Fever, Chills . . . and Losses: More Companies Should Be Preparing for an Influenza Pandemic." Wall Street Journal.
Managing Benefits Plans. "Swine Flu Tests Emergency Plans; Experts Urge Communicating Best Practices." July 2009.
Securian Financial Group. Extra!, Internal web site for associates.
