Champion best practices such
as pre-screening hires, providing the right work tools and checking in with
employees.
As
the frequency of workers’
compensation claims continues to escalate, so do its corresponding costs. In
fact, the most disabling workplace injuries and illnesses cost U.S. employers
nearly $60 billion in workers’ compensation (WC) costs[1]. The
cost breakdown of WC has evolved as well. Traditionally, the indemnity costs -
compensation for damages or loss - accounted for about 60% of total costs,
while only 40% went to medical expenses. By
contrast, in recent years this has evolved to a profile of WC costs today that are
40% or less for indemnity and 60% or more for medical.
“It is more critical than ever
for employers to create a healthy and safe work environment in order to
minimize the frequency and rising medical costs of their worker’s comp claims,”
said Tom Heebner, CSP, ARM,
ABCP, CLS, senior vice president, Risk Services Division, HUB International. “Organizations
that want to stay ahead of rising costs will take a good look at their existing
workforce, policies and procedures and physical workspace when considering how
they can improve worker’s comp numbers long
term.”
Leveraging
best practices to avoid workers’ compensation claims
There are six steps companies can
take to reduce both the severity and frequency of workers’ compensation claims.
Regardless of the industry, any
employer can leverage the following best practices to create a safe environment
that promotes accountability among employees and employers alike.
Screen
employees before hire. Take extra steps to make sure
only qualified employees are hired for the demands of their job. A healthy and
fit employee is less likely to get injured on the job and will recover faster
should they sustain an injury. Have a third party perform physicals and
functional capacity evaluations to assess prospective employee’s ability to
meet the physical requirements of each job.
Maintain
the physical workplace. Make sure worksites are well
maintained and regularly evaluated for hazards, including performing preventive
maintenance where applicable.
Promote
the physical and emotional health of employees.
Without the right balance of physical and emotional health, stress and anxiety
can surface and with it comes an increase in injuries and illnesses. Make
sure supervisors aren’t emphasizing production goals at the expense of safety.
When possible, utilize performance management strategies that engage workers in
shared decision-making. Consider a corporate health
and performance program
that promotes healthy living and rewards healthy lifestyle choices.
Provide
the necessary tools for the job. Sometimes
it’s the nature of the work itself that poses the greatest risk. Assess the
required work, establish on-the-job rules accordingly, train employees to do
their jobs safely and provide the necessary tools and protective equipment they
need.
Institute
a twice-daily check-in. For blue collar jobs, like
construction, that are especially injury prone, establish a meeting at the
beginning as well as the end of the day that requires everyone to pass in front
of the foreman’s eyes. The morning meeting might include five minutes of
stretching or warm-ups, while the evening meeting could require everyone to sign
something that says “I left the job healthy today,” to prevent an injured claim
tomorrow.
Establish
a return-to-work program. Known to curb long-term WC
costs by bringing employees back to the office/project more quickly, return-to-work
programs
can include part-time, telecommuting and modified work duties and schedules.
Such programs can improve productivity and morale across an organization, saving
time and money, while protecting companies from loss of talent.
Creating
a culture of health and safety
When companies apply both general
best practices and those specific to their corporate culture and employee base,
they will see real results.
“There’s no question that healthy
employees are more productive, happier and generally have lower levels of
stress and anxiety,” said Philip
Casto, CSP, CHST, CFPS, CHMM, CRIS, assistant vice president/senior risk
consultant, HUB International. “The businesses that cultivate
the optimal work environment and champion the physical and emotional health of
their workforce can experience a real reduction in turnover rates and
absenteeism. Ultimately, this will produce fewer workers’ comp claims.”
Pre-screening new hires, creating optimal conditions in the workplace
and instituting post-injury support for employees can create a culture of
health and safety that is felt across the entire organization. Contact
HUB International's risk management team to find out how your business can drive its workers’
compensation claims and costs down by creating a healthier work environment.
[1] According
to the 2014 Liberty Mutual Workplace Safety Index