flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

Practical Ways to Minimize Worker’s Compensation Costs

Editor's Note: If you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's Human Resource Management (HRM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

Featured Best Practice on Compensation

20-slide PowerPoint presentation
Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. (Also see the Related Info (including Benefits).) Compensation is [read more]

* * * *

Are you having difficulty figuring out how to cut down on the expense of workers’ compensation for your company? Because of this, do you have a strategy in place if a workers’ compensation claim is filed against your company? Workplace injuries can range from essential muscular strains to more serious, long-term conditions. 

A job injury might leave you feeling anxious and apprehensive about the future. Paychecks, medical expenses, lost wages, and paperwork may pile up due to your absence from work. It can be stressful and unpredictable when a worker is injured on the job. Fortunately, Illinois law requires companies to have workers’ compensation insurance to safeguard workers from the harmful effects of work-related accidents.

On the other hand, many injured workers do not receive the total compensation they are entitled to. In that case, you can take the help of the Rosenfeld Injury Lawyer team or you may count on one of our personal injury attorneys at Rosenfeld Injury Lawyers, LLC to help you. Our Chicago workers’ compensation attorneys are on the front lines every day, fighting for the rights of injured workers. If you’ve been denied a workers’ compensation claim by your employer and aren’t sure where to turn, our work injury lawyers can assist. In the event of a work-related injury, our Chicago workers’ compensation lawyers will fight to get you the maximum compensation you deserve. When you work long hours and suffer a significant injury, we’ll fight to get you the Illinois workers’ compensation benefits and medical care you need.

Workers’ compensation insurance premiums may be familiar to you, but you may not have considered the indirect expenses of on-the-job injuries and accidents. A company’s reputation and bottom line can be severely damaged by workplace injuries, which substantially impact the company’s culture and reputation. Reducing workers’ compensation costs is necessary if you own a small or large business. 

Below are some of the key strategies to minimize worker’s compensation costs:

Preventing workers’ compensation claims:

When an employee is injured at work, their workers’ compensation insurance helps their insurance provider pay for missed wages, medical costs, and claim payments. Your insurance prices will rise as a result of this. Work to instill a sense of safety among your staff to keep them safe or at least limit the number of injuries they incur. Workers’ compensation costs can be cut in half if you have a formal safety policy in place and provide regular training for your staff on how to operate safely.

Choose the Best Medical Treatment:

Getting your injured workers the medical care they need as quickly as possible might help you save money on workers’ compensation. Calling the appropriate medical services as soon as the worker is injured lowers the chances of them becoming permanently disabled. As a result, you may decrease your medical costs and reduce your risk of being sued. All workers’ compensation insurance companies do not use the typical preferred provider list, and an OBN may be used instead. This group of doctors has been selected for their high level of patient care and overall success, rather than simply because they are the nearest. Working with OBN physicians can improve the health outcomes of injured workers and expedite their return to work.

Risk Management:

Risk is inherent in any industry. You can proactively reduce risk by identifying the most at-risk areas of your business. Creating a risk management strategy allows your business to put in place the measures that can reduce the chances of on-the-job injuries while lowering workers’ compensation costs.

Injuries on the job place should be avoided at all costs.

There are numerous ways to save money by cutting down on work-related illness and injury. To keep your employees safe and healthy, you need to be proactive. Encouraging your employees to share their thoughts and suggestions on how to make the workplace safer, is an excellent way to get their input. A thorough investigation must occur during workplace accidents, injuries, or occupational diseases while taking proactive measures to ensure that similar incidents are not repeated. If you want to minimize the risk of an accident, ensure your personnel are adequately trained in workplace safety. The return on investment (ROI) of employee training is well established. A consistent focus on safety will ensure minimizing mishaps that could harm your property or injure a worker. 

Find the best workers’ compensation insurance:

Insurance for your workers’ compensation needs is no different than insurance for your health or automobile. Your finances may suffer if you don’t have adequate workers’ compensation insurance. They will not have to worry about medical bills, lost pay, salary benefits, and more if workers’ compensation insurance covers them. The more insurance companies you speak with, the better your chances of securing a monthly premium within your means. To be clear, the more employees you have, the more monthly workers’ compensation expenses you’ll have to pay.

Conclusion

These accidents might be frightening, but they don’t have to cause financial ruin. It is possible to reduce the direct and indirect expenses of work-related injuries on both the employees and the company level. An effective return-to-work program, quality medical treatment, and an informed safety program can help regulate and reduce workers’ compensation costs.

26-slide PowerPoint presentation
"In most companies, Sales is the only revenue-generating function. Everything else is a cost center." The importance of Sales is thus indisputable. For such an important function, it becomes equally as important to design an appropriate Sales Compensation Plan. Sales Compensation is often [read more]

Want to Achieve Excellence in Human Resource Management (HRM)?

Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources


Excel workbook
The WFH Worker Compensation Claim Toolkit includes a set of best-practice templates, step-by-step workplans, and maturity diagnostics. Please note the above partial preview is ONLY of the Self Assessment Excel Dashboard, referenced in steps 1 and 2 (see below for more details). Through a [read more]

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.




Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  


The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.


Connect with Flevy:

     
  


About Flevy.com   /   Terms   /   Privacy Policy
© . Flevy LLC. All Rights Reserved.