How to Reduce your Cost


• If you are searching for ways to trim down workers compensation insurance costs, you’re mindful of the direct expenses which you pay in premiums.
• However what you might not have thought about is the indirect costs of workplace injuries and accidents, which go beyond what you pay for an employee’s compensation plan. Perhaps you may need to train substitute workers, adapt work schedules, analyze accidents and employ corrective measures. You can need to fix damaged property and equipment, lose efficiency and must cope with lower staff morale and absenteeism.
• That’s the reason my first recommendation – regulating workers compensation costs through a safety program – is crucial to your bottom line.
• 1. Developing your safety program
• A lot of accidents can be averted before they happen. Keeping a safety program allows you to detect and terminate workplace hazards that may result in injuries. The ROI on this kind of programs is apparently credible. Numerous studies have proved that for every dime spent on injury prevention, firms realize a $2 – $6 profit, as reported by Safety and Health magazine.
• This solid return may be the reason several states, including California, require businesses to keep a written safety program. Furthermore, putting requirements and concepts in writing implies that your company is dedicated to providing a healthy job environment for workers.
• If you’re starting afresh with a perceivably healthy work environment, you can get assistance developing your safety program from various sources at different prices. Think about using:
• • An independent consultant – third-party office safety consultants usually charge $100/hour.
• • A business-targeted template – Certain online businesses offer downloadable safety program templates specifically made for different industries for about $100 – $150.
• • Your workers compensation insurance agency – A lot of service providers offer fee-inclusive safety consultations to their clients.
• • Occupational Safety & Health Administration: OSHA’s On-site Consultation Program provides cost-free professional guidance to medium and small-sized businesses. Despite the fact that such services are “separate from enforcement,” prepare yourself to complete OSHA’s recommendations.
• And never forget, a safety program should be more than the piece of content. Only the help of the company executives and appropriate on-the-ground training will implement it (and help to make a significant difference in employee safety, and managing your workers compensation costs).
• 2. Return-to-Work Program
• Despite having a quality safety program, injuries can still happen. If they do, a return-to-work program can give a direct cost advantage to the employees compensation claim. Studies have shown that the longer an employee’s compensation claim stays open, the pricier the claim. Take, for instance, when injured workers get back to work later, the claim has to cover much more replacement revenue.
• Therefore, the aim of a return-to-work program is always to help injured staff return to work in the shortest possible time, even when it’s on a tailored principle while they recover. This may include giving a worker the opportunity to work part-time or light-duty hours, matched in partnership with the staff ‘s medical professional.
• A dynamic return-to-work program also provides indirect cost benefits. It can enable you to manage workplace connections with injured employees so as to avoid the alienation that can arise on each side during a long absence. And an initial return-to-work reduces the chance that the worker cannot return.
• Take a look at the return-to-work safety plan template of the Society for Human Resource Management for an example of the appropriate ways to set up your program.
• 3. Become a member of a Professional Employment Organization
• Last but not least, being a member of a Professional Employer Organization will help you to control your employees compensation claims and costs while assisting you to resolve the safety issues in your enterprise. An effective Professional Employment organization’s safety solutions can significantly help in promoting a high-return “culture of safety” at your company.
• A Professional Employment Organization can assist you:
• • Select employees’ compensation plan coverage. This can reduce employees compensation premium rates by negotiating competitive plans with insurance firms.
• • Assess the safety of the office and develop a safety program that will enable you to prevent accidents.
• • Resolve claims promptly and efficiently.
• • Maintain interactions with injured employees.
• • Execute a return-to-work program that boosts worker morale and minimizes the span and cost of workers compensation claims.
• • Taken as a whole, these efforts would make a huge difference in the amount spent on workers compensation and indirect expenses of workplace injury.

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