12 Simple Measures For Reducing Workers’ Compensation Costs

Workers' compensation is intended to protectshould meet regularly, conduct periodic worksite
employees injured on the job by making sureinspections, review investigations of occupational
they receive prompt medical attention andaccidents, as well as generate and implement
payment for lost wages while they are disabledsuggestions for preventing future accidents.
and out of work because of a work-related injury8. Post hazard signs. The Occupation Safety
or illness. Workers' compensation laws require that& Health (OSH) Act requires thatemployers
employers carry insurance or maintain a certainpost signs or symbols to indicate and define
level of financial reserve to make sure sufficientspecific hazards in work areas. There are four
funds are available to compensate workersprimary types of signs established under the Act:
suffering from on-the-job injuries or illnesses. Whiledanger, caution, safety instruction, and biological
accidents happen, some on the job injuries can behazard warning. Employees must be instructed on
avoided with a few simple initiatives, such aswhat each sign means.Danger signs indicate
health and wellness programs, safety training, andimmediate danger and that special precautions are
the investigation and pursuit of fraudulent claims.necessary. Caution signs indicate a possible hazard
To follow are some ways to implement theseand proper precaution should be taken. Safety
cost control measures:instruction signs must be used where there is a
1. Take immediate action. The more quickly anneed for general instructions and suggestions
employer gets involved in a workers'relative to safety measures. The biological hazard
compensation claim, the sooner it is resolved andwarning is to be used to signify a biohazard
the employee can come back to work. Takepresenting a risk and to identify equipment,
prompt action and stay involved.containers, rooms, and materials contaminated
2. Investigate and pursue fraudulent claims. Eachwith possible hazardous agents. Remember to
case will likely raise your insurance premiums, sopost these signs near the related threat.
it's important for employers to investigate claims9. Ergonomics. Ergonomics is the study of how
believed to be fraudulent. Look out for thesework processes and the work environment
signs when considering a claim's merit: (1) thecontribute to an employee's overall health. When
employee was new to the job when the injurythe workplace is designed in a way that takes
was reported; (2)the injury is reported Mondayinto account an employee's physical health, it helps
morning, and there are no witnesses.People whoto increase the worker's productivity and avoid
get hurt over the weekend sometimes try toillness and injuries. Some of the most common
cash out on their injuries by faking an on-the-jobergonomic related injuries include repetitive stress
accident; and (3) the employee frequentlyinjuries, back pain, and carpal tunnel syndrome.
changes health care providers in hopes ofWhen designing an employee's work environment
stretching workers' comp payments. When thetake these types of injuries into consideration. For
signs of a fraudulent claim arise, it's important toexample, substitute a regular computer chair for
promptly report them to your insurer.an ergonomically correct chair or allow an
3. Create a health & wellness program.employee who regularly types on a keyboard
Surveys indicate that companies institutingseveral breaks throughout the workday.
wellness programs typically see a 30% reduction10. Minimize job stress. Stress is a leading
in medical and absenteeism costs in less than fourcontributor of on the job injuries. Typically, an
years. A wellness program can be as simple asemployee experiencing stress becomes
coordinating regular meetings to discuss health andpreoccupied and inattentive and as a result their
nutrition or organizing a group exercise program.awareness plummets - setting the stage for
Employees who take part in regular fitnesssome potentially dangerous consequences. Job
programs are less likely to take sick days and arerelated stress is often due to excessive work
more alert and focused during the workday -loads, long hours, conflicting expectations, and lack
translation: less on the job accidents.of co-worker or supervisory support. To help
4. Establish & enforce safety guidelines. Todiminish some of these stressors, employers
prevent accidents from occurring all together, it isshould train managers to be constructive and
important for employers to implement clearsupportive, set realistic goals, restructure jobs to
safety guidelines, including any personal protectiveensure position demands match employee skills,
equipment (PPE) that must be used, identifiableand encourage employees to take adequate
workplace hazards and how to avoid them, andbreaks throughout the day.
proper use of machinery and equipment. Not only11. Employee assistance. Employee Assistance
is it necessary to have clear guidelines in place,Programs (EAPs) are a good outlet for employees
but it is also important to demonstrate that youdealing with stress or personal issues that may
are serious about safety. Employees found toimpact work performance. EAP's are confidential
have violated safety protocol should be subject toemployee counseling programs typically offered to
disciplinary action.employees as a benefit and are designed to help
5. Develop emergency response procedures.employees deal with personal problems that may
Having an emergency response plan in placehinder or alter their work performance or health.
ensures that your employees will know how to12. Require pre-hire medical exams. Prior to hiring
respond in the event of an accident or on the joban employee, consider screening him or her for
injury.Your plan should spell out exactly what mustpreexisting medical conditions or drug use. Pre-hire
be done in an emergency, including who tomedical examinations and drug testing are only
contact and whether or not employees are topermitted once an offer of employment has been
assist in providing care or wait for medicalmade, and as such, an offer may be made
personnel to arrive. Immediate action can meancontingent on the results of these exams.
the difference betweenthe need for one week ofRescinding a job offer is only permitted if an
workers' compensation versus one month.employee's medical condition would realistically
6. Conduct safety & health training. Toimpact his or her ability to perform the essential
ensure all employees understand how to practicefunctions of the job. It is important to also note
safety in the workplace, be sure to providethat pre-hire medical examinations and drug
regular training on safety procedures, hazardscreens must be implemented consistently. For
protections and emergency response plans.example, employers are not permitted to only
Consider incorporating this training into yourrequire those suspected of having a medical
new-hire orientation and mandating regular safetycondition to submit to a pre-hire medical exam,
training annually thereafter.while relieving others from such a requirement. To
7. Create safety & health committees. Someensure non-discriminatory and lawful pre-hire
state workers' compensation laws requirepractices, check the medical examinations section
employers to establish safety and heathof our state & federal laws.
committees. Check your state requirements inTaking just a few of these simple steps will help
the workers' compensation section of our stateto minimize your workers' compensation costs
& federal laws. Even if not required, safetyand maintain a happy and healthy workforce. Not
and health committees are a cost effective wayonly will your workers' compensation costs decline,
to prevent on the job accidents and ensure abut so will employee absenteeism and tardiness.
safe workplace. To be effective, the committee