by Jami McNees
Most employers view Workers’ Compensation as another painful cost of doing business and suffer their way through expensive premium payments and audits. But when viewed as a long term controllable cost, employers are more likely to create strategies and programs to reduce their premiums.
Reducing costs begins with the hiring process. Creating accurate job descriptions and physical expectations will ensure you seek out and hire the right people. Initiating effective interview techniques and background checks will help ensure the right people are hired for the right jobs.
Back-to-work or modified return-to-work programs shorten the length of workers compensation claims and thus reduce the cost. Assisting an injured worker to return to work in a modified capacity will keep the employee engaged in your organization and prepare them to return to their full capacity sooner thus closing the claim faster and reducing the cost.
Consistent safety programs and injury management strategies are the greatest cost containment method available. Too often, employers don’t address safety until after a workers compensation related accident has occurred. Keeping a great safety program in place can save an employer from increased modification rates and larger premiums indefinitely.
Worker retention is another method for improving work comp rates. Fewer accidents occur with skilled workforces. Retaining good employees means maintaining competitive salaries, benefits, vacation and time off based on the industry. Employees who feel appreciated and believe that their contribution to the organization is valued maintain positive morale and are less likely to seek other employment or file a questionable/fraudulent work comp claim.
Identifying Workers Compensation as a long term controllable cost ultimately improves the financial bottom line.
Jami McNees is with Temecula Insurance Services in Temecula. She may be reached at (951) 694-5200. www.temeculainsuranceservices.com