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J.C. Penney moves toward total absence management program

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If J.C. Penney Co. Inc. employees are unable to come to work for any reason — illness, injury, a death in the family — they soon will be able to notify Sedgwick Claims Management Services Inc.

After receiving that notice, either reported to a call center via a toll-free telephone number or online via J.C. Penney's Powerline portal, Sedgwick will mobilize to ensure that the appropriate steps are taken to replace that person in the workplace and to help them return to work as soon as possible.

Whether that involves filing a workers compensation claim or simply directing them to appropriate medical care for a nonoccupational illness, Sedgwick serves as their total absence manager, regardless of the cause.

“We want to build a model where we get to total absence and productivity management,” said Matthew Harmon, J.C. Penney's benefits delivery and retirement director. “It's about managing people's return to work, about making sure they're productive when they are at work and that they get the care they need.”

For example, a hairdresser calls in sick at 10 a.m. because seasonal weather has triggered an asthma attack. Sedgwick will contact that person's supervisor to have someone cover scheduled appointments. Sedgwick also will guide the worker to appropriate medical care to manage the condition and remain productive, said Bradley Johnson, vice president of disability and absence management services at Sedgwick in Memphis, Tenn.

“We also are working with J.C. Penney to understand the key drivers of absence so we can better manage incidental absence impacting its operations,” he said. And because of the technology component “there will be a higher level of integration, providing customized solutions so managers and supervisors can see why employees are not at work.”

The ultimate objective is to “take the guesswork out of absence, whether it's due to something that happened at the worksite or outside of the worksite,” said Paul Barden, CEO of Pacific Resources Benefits Advisors L.L.C., the Chicago-based broker that worked with Mr. Harmon to find the provider partner.

This innovative program, which has been evolving over the past three years, already is saving J.C. Penney “millions” by reducing the incidence and duration of unscheduled absences, Mr. Barden said.

“We are challenging Sedgwick as a vendor to deliver something that is not out there in the marketplace. We benefit from it because we have the best programs possible for our employees. They benefit from it because they develop a model that other employers want. This is a problem that is not unique to us,” said Mr. Harmon.

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