Did you know?
According to 2016 Liberty Mutual Workplace Safety Index The Most Serious Workplace Injuries Cost U.S. Companies $62 Billion Per Year.
The same study in 2010 showed that the cost was $52 billion per year!!
The fact that we as a nation have managed to decrease the numer of deaths per day (according to the Bureau of Labor Statistics the number of fatalities that occured on the job went from 38 per day back in 1971 to to 13 nowadays) tells us that we must not be paying much attention to the injuries and diseases that occur as a result of exposing workers to hazards on their jobs.
Another statistic shows that for every $1 spent in safety measures you save $4 to $6 for your company.
The difficulty here is that we forget how important this is.
So here the 3 key steps to save money in your increasing workers compensation fees:
1. Look at your records.
Talk to your Workers Compensation (or HR department if they handle this documentation) and ask them what are the most costly injuries. Now ask yourself, are these the most dangerous occupations at your facility? If they are not, this could mean you are spending good time and money preventing the people in those dangerous jobs from getting hurt. This happens often because the dangers are so obvious, that you focus your energies in preventing falls for the workers that do window cleaning in high rise buildings (an obviously dangerous occupation). This could also be the reason why you are forgetting the people that sit at their cubicle taking phone calls all day long to schedule the window-cleaning service. Now after talking to your workers compensation or HR department you realize those are the injuries that are bringing about the increase in your rate: Neck sprains, carpal tunnel syndrome, chronic back pain, etc., sound familiar?
2. Ask your employees.
Once you know what is really happening and where most of injuries are occurring you spend some time with the workers that are getting hurt. They will be the ones to tell you what they need to prevent them from getting hurt. Remember they know how their days goes, you don't ! So don't go about making suggestions without asking them first! In reality this is a double win: You get insight and they feel cared for.
3. Lower your Experience Modification Rate.
The way Insurance carriers calculate your monthly workers is not as simple as you may think: they use a legal system called the competitive rating system. Each insurance will base its pricing on the classifications, the size of payroll and the individual risk characteristics of each business. This risk is measured by your Experience Modification Rate (EMR). Below a certain number, you are considerd low risk, above a certain number you are considered high risk.
Voila!
3 simple steps to get you to reduce your workers compensation costs.
One more thing to think about: if you follow these simple steps, you will not only decrease your direct workers compensation cost (medical and indemnity payments) but also your Indirect Costs such as production time lost by the injured employee, the entire department (yes, they also suffer a delay and low morale after an injury), supervisors having to daeal with damaged product, unsatisfied customers and the time it takes to get things back to running smoothly, new trainees, overhead and all the other costs when having to hire attorneys and the increase in your insurance.
How is that for motivation?
Yours in health,
Alba M. Vazquez MCS-P