Is Workers’ Compensation Slashing Your Profits?
Fact: While the costs (from $0.75 to nearly $12.00 per $100 in employee wages) and penalties for non-compliance vary widely, every state except Texas requires businesses to have workman’s compensation insurance.
3 Key Strategies to Fight Back
Create a Culture of Safety
Safety programs can identify and eliminate hazards in your workplace. Prevention is not only a huge benefit to employees; it also makes a dent in your bottom line. For example, fewer incidences result in lower workers’ comp insurance rates. In fact, studies reveal that for every dollar invested in prevention, businesses experience a $2 – $6 return
- Make safety and health a core organizational value, beginning with upper management.
- Be proactive. Involve your employees in your safety program from goal setting to recognizing and reporting hazards, to tracking your progress.
- Establish safety inspections at regular intervals from simple checks throughout the day to more comprehensive examinations on a weekly and monthly basis.
- Safety policies are more than a document. Train. Monitor. Evaluate. Improve.
- Implement safety rewards.
- Know your state requirements and ensure every employee is classified correctly.
Create A Proactive Return-To-Work Program
Despite an active, management-led, employee-supported safety program, accidents will happen. Maintaining a proactive return-to-work program plays an active role in cost reduction.
- Respond promptly and compassionately to injured workers. Remain in-contact during their recovery.
- Encourage employees to return to work – even if on a temporarily modified basis. When necessary, make accommodations to help the process. For example, part-time or light-duty work or work-from-home options, all collaborated with their medical provider.
- Involve co-workers in the process. Create an atmosphere where co-workers miss the injured employee and champion his/her progress.
- Continue contact and monitoring when the employee returns until he/she fully recovers.
Connect with a Professional Employer Organization
A reputable PEO will offer integrated, cost-effective solutions for your business, including reducing your workers’ compensation insurance premiums via negotiation with insurance providers. In addition to cost negotiations, PEO’s:
- Evaluate your safety program and assist in making appropriate changes.
- Evaluate/improve your return-to-work program.
- Ensure that claims are managed promptly and efficiently; handling contact and relationship with your injured employee.
- Manage contact with the claims adjuster and medical personnel
- Verify coverage and maintain a record of paperwork throughout the entire process of an injury claim, ensuring that the claims adjuster follows best practices.
The team at Blue Box Creative Solutions understands the magnitude of workers’ comp – from cost reduction to ensuring each business has the best insurance available for their specific needs. Our concept is simple: we leverage resources and economies of scale (think Costco and Walmart) to help small and medium businesses save money not only in workers’ compensation but also in payroll processing, employee benefits, payroll funding, and Human Resource services. Our services are transforming the way small and medium-sized businesses are run, giving them the advantages of large corporations. Find out for yourself. Call us today. (732) 921-2105