Workers’ Comp Costs – Seven Ways to Save

Coming soon to Textile Services magazine is an article on how to reduce workers’ compensation costs. An online summary of the article by Michael Rayo, risk advisor to Haylor, Freyer & Coon Inc., follows.

1. Put people back to work: Implementing an early “return-to-work program” is one of the most effective ways to cut workers’ compensation costs. Employees who are injured at work often benefit from taking on light-duty tasks, as opposed to staying off work for extended periods. Getting them back on the job not only reduces the overall claim duration but also keeps workers engaged in the workplace, thus aiding their mental/emotional recovery. It’s essential to establish clear guidelines for modified work duties and communicate them to healthcare providers, managers and the employee.

2. Establish a safety committee: Establishing a company safety committee is crucial to identifying hazards, ensuring compliance with safety rules and promoting a workplace culture of safety. A safety committee that includes representatives from various departments can review workplace risks, investigate safety incidents and recommend improvements. An effective committee can help prevent incidents, thereby reducing the likelihood of injuries and workers’ comp claims. Having management engagement in the committee is critical to advancing a safety culture.

3. Expand onboarding/safety orientation: Comprehensive onboarding and safety orientation for new employees is an essential step in minimizing workplace injuries. Training new hires on safety protocols, emergency procedures and the proper use of equipment can lower the odds of safety incidents. Clear communication of expectations around safe practices will help employees understand their role in maintaining a safe working environment and the need to report hazards promptly.

4. Conduct pre-employment screenings: Pre-employment screenings, including physical exams and drug tests, are effective tools for identifying potential risks among employee prospects. Assessing a candidate’s physical and mental fitness for the job can help ensure that they can work without risking injuries. Pre-employment screenings can also lower the odds of hiring individuals who are prone to injuries due to pre-existing conditions or other risk factors. This can help control workers’ costs.

5. Establishing mentorship and shadowing programs: Mentorship and job-shadowing programs are valuable tools for helping new employees learn their roles in a safe manner. Pairing new employees with experienced mentors, gives them hands-on guidance in safely performing tasks, which lowers the odds of errors that could lead to injuries. Mentorship can also help foster a culture of safety by encouraging workers to support one another in maintaining best practices for workplace safety.

6. Emphasize safety & health management: A comprehensive safety and health management program that includes ongoing training, regular safety audits and a culture of continuous improvement is key to minimizing workplace injuries. Ensuring that all employees – from management to front-line workers – are trained to identify and address safety hazards is fundamental. Regular inspections of the workplace and equipment, along with immediately addressing any identified risks, contribute to maintaining a safe environment and reducing injuries.

7. Deploy cameras, AI for fraud protection (fleet & facilities): Cameras, both in fleets and operations areas, serve as a strong deterrent against fraud and misconduct. For fleet vehicles, dashcams can provide crucial evidence in the event of an incident, helping to protect against fraudulent claims. Additionally, having cameras in the operations area can monitor compliance with safety protocols, identifying any unsafe behavior or risks in real time. This level of surveillance not only helps prevent incidents but protects the company from fraudulent workers’ compensation claims, which can arise if injuries are exaggerated or fabricated. The rise of artificial intelligence in the workers’ compensation industry has opened new opportunities for enhanced risk-management strategies. As technology advances, the ability to identify and address daily risks is becoming increasingly effective. AI can now detect improper ergonomic movements, pinpoint potential hazards and identify unsafe actions – such as pinch points – thus helping to improve overall workplace safety.

Bottom Line: Fewer Incidents = Lower Costs: By focusing on these key strategies – early return to work, safety committees, onboarding and safety orientations, pre-employment screenings, mentorship programs, comprehensive safety and health management and fraud protection via camera surveillance – companies can effectively manage and reduce their workers’ compensation costs by lowering the number of safety and health-related injury claims. Creating a culture of safety and proactive risk management benefits both employers and employees, leading to a safer, more productive workplace.

Haylor, Freyer & Coon Inc., Syracuse, NY, is a TRSA Business Partner. Companies that participate in this initiative offer members-only programs that reduce risks and control costs, while enhancing your company’s profitability. Click here for details.