An apple a day keeps the doctor away…….

In an attempt to reduce injuries and workman’s compensation costs during my first year at Coast Distributors in Oregon, we instigated a program run by the Oregon State University athletic department’s physical therapists.  The program started every work day with a series of 10 to 15 minutes stretching exercises.  We implemented this practice and made it available, not only to warehousing, delivery and sales employees, but also to the administration.  Almost immediately we saw a substantial reduction in injuries.  In fact, after the first year, our premiums dropped over $250,000 and our experience rating dropped to reflect the positive results of the program.

All beer companies do, and will continue, to review internal cost structures.  Sometimes these reviews come at the expense of revenue.  The forward thinking companies look for ways to increase revenue.  Foremost on the minds of many companies in this day and age is the Affordable Health Care Act (Obamacare) scheduled to begin in the fall.  The concern from all levels of the industry is finding skilled and qualified talent.  Once found, some companies, including Boston Brewing, have the new employees sign time bound non-competes.  If the employee leaves, he/she cannot work for another beer company for a year.  This is one way to retain employees, however, this procedure could also be considered negative in the eyes of many employees.

One of these forward thinking companies I recently visited was Monarch in Indiana.  This organization created a unique way to not only control the Health Care issue, but also, reduce injuries and employee turn-over to almost zero.  After crunching the numbers, Monarch took a leap and hired a full-time MD for their employees and their immediate families.  Along with the physician, Monarch hired two RNs, and modified their offices to include a small medical center.  Each employee and their family members are required to have a two-hour annual physical.  The cost benefits have been nothing short of amazing and turnover, insurance premiums and workers comp claims have dropped to almost nothing.

Physical therapy, and a well-equipped weight room and gym are provided for employees.   The company removed all vending machines and replaced the unhealthy snacks with fresh fruit.  These changes have provided the Monarch employees with improved health and nutritional options.

Monarch’s forward thinking does not end here.   The company is converting their entire fleet of vehicles to propane gas with guaranteed pricing for three years, thus allowing gas to become a fixed cost instead of a variable one.

The future success for companies like Monarch is not simply tied to their great portfolio or cost controls; it comes down to the quality of their people.  Remember, an apple a day keeps the doctor away.