Lowering worker’s compensation costs is an effective way to minimize operating expenses and free up more cash flow to reinvest into your business, but it takes planning to meet this goal. Lowering your premium helps, but cutting this cost significantly involves more than just shopping for a better rate.
Below are the top five ways you can reduce the amount you pay out of pocket every year for claims related to injuries in the workplace.
1. Set up a Comprehensive Safety Program
Trained, prepared employees are much less likely to get hurt. By eliminating hazards and instituting in-depth training procedures for every employee in your company, you can prevent injuries before they occur. It’s the proactive way to handle workers’ compensation costs, and it’s the cheapest. According to Safety and Health Magazine, every $1 invested in workplace safety results in a $2 to $6 return.
2. Set up a Return-to-Work Program
Both the employer and the employee benefit more the sooner the employee can return to work. The longer a worker’s compensation claim remains open, the greater the cost to your business.
The goal of setting up a return-to-work program is establishing a way for the employee to get back on the job, even if it’s in a modified, limited role during their recovery period. The sooner you can get your employee back on the job, the less likely it is that alienation will occur or the employee will leave altogether.
3. Be Proactive When Claims Occur
Many studies show that what happens in the 24 hours immediately following a workplace injury is key. The longer it takes to report the injury and file a claim, the costlier it will be for the company, according to multiple studies.
Prompt treatment and medical guidance results in faster healing and better long-term results. Because it may involve sensitive medical issues, it could benefit companies to depend on a nurse triage third party to gather information and document claims, versus an internal claims professional from human resources.
4. Investigate, Document, Evaluate
What caused the workplace injury? Were proper safety procedures followed? Is it probable that the injury could have been avoided with additional safety guidelines or training?
Only through honest investigation, documentation and evaluation of workplace injuries can companies create effective, safe workplace procedures and work environments. Don’t write off claims as anomalies — be straightforward and transparent in your review of the incident.
5. Cut Your Premium with a PEO Membership
In general, businesses can greatly benefit from a PEO membership to lower workers’ compensation costs. Not only can a PEO negotiate lower rates, they can handle all the previous steps as well, from implementing effective safety procedures to managing the relationship with the injured employee.
Trust WTA, Inc., for full-service PEO partnership. We can help your business grow by lowering workers’ compensation costs and supporting you to help create a worker-friendly, safe environment.