How to cut workers’ comp costs in 6 steps
Frustration reigns with many managers when employees are out with a workplace injury. Absent blood and gore, an air of suspicion hovers over the claim the longer the individual remains out of work. While most claims are legitimate, too often they are viewed as fraudulent and managers feel the system is rigged against them.
It doesn't have to be this way. Managers can gain control of the system and reduce their overall costs, while showing compassion for the injured employee.
No matter how good an organization's safety program is, injuries still occur. Employers must, therefore, develop a positive “post-injury response” system, designed to care for their injured employee, get him back to work quickly, while minimizing workers' compensation costs and lost productivity. To do this, employers should implement a six-step post-injury response system:
1. Take care of the injured employee
When someone becomes injured, they are your priority. Whether it is providing first aid or escorting the person to the hospital, the tone of the case will be established in the first few minutes after the injury. Employees are most vulnerable immediately after the injury. Questions flow through their head: “Will I be OK?” “How will I be able to pay the mortgage if I'm out of work without a paycheck?”
Reassure the employee. Show compassion and concern. Your employee is hurt. Too often supervisors forget how to respond and focus on getting the first report of injury completed. This should not be first on the radar. There will be plenty of time later to fill out those insurance forms. The priority now is the injured employee.
2. Designate an injury coordinator
Your workers' comp claims must be managed. Close your eyes to the problem and bad things happen. The coordinator must proactively manage each claim. Working with the injured employee, medical provider, insurer, supervisor and potentially a regulator requires someone with strong people and organizational skills.
3. Establish a medical provider relationship
If an injured employee needs medical treatment, a relationship with doctors, medical specialists and a hospital or clinic are key. Physicians should know and understand your workplace so that they can provide quality care and to help the employee to return to work when medically fit. ??
4. Form a modified duty program
This is the key to reducing your costs. Studies show that when employees return to work, under proper medical supervision, they heal quicker, feel better about themselves and work and are able to remain productive. Supervisors understandably are concerned about employees reinjuring themselves or having their shift bogged down by an employee who is not 100%. However, this is the single best way to reduce your costs and get your injured employee back to work quickly at full duty.
5. Analyze all accidents
The true cause of all accidents must be determined so they can be prevented in the future. Analysis and correction form the basis of your safety program and sends a powerful message to all employees that safety is important.
6. Develop a relationship with the insurer
As your partner, they can be key to the early, successful resolution of the claim. Without their help, claims can linger. Utilize their safety and claims management programs and invite them to your facility. They are not your enemy.
Reducing your workers' compensation cost requires a comprehensive program where employers partner with employees, medical providers and the insurer. If you take care of your injured employee, get them the best medical treatment and provide a caring and trusting work culture, your workers' compensation costs will drop and your employees will be happier, more productive and have less work-related injuries.
Rick Dacri is a Kennebunk-based workforce expert and management consultant. Dacri & Associates provides sustainable workforce strategies that are tailored to help businesses accomplish their goals and better use their greatest resource — employees. He can be reached at rick@dacri.com.
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