Workers’ compensation benefits can be a lifesaver for an injured employee, but providing and managing coverage can be a costly hassle for employers. Experts say that workers fare better and companies save money when comp is integrated into safety and risk management functions.
The challenge for business today, says Sam Friedman, is adding money to the top line through sales due to the economic slump. "As a result, the emphasis switches to the expense side. Risk managers have a challenge to prove their value, and asking for investments in safety, wellness, and loss control is a tough sell."
Friedman is an insurance leader at Deloitte Research and a 30-year veteran of the workers’ comp field. He explains that on the surface, cutting a $100,000 safety training program adds that sum immediately to bottom-line savings.
It’s harder to make the case (even though it’s true) that holding onto that training program helps avoid costly accidents, comp claims, and productivity losses. What at first blush looks like a $100,000 savings may not be that at all!
Friedman advises safety and risk management professionals to make sure they’re involved in executive-level discussions. That’s one way to ensure that safety and loss control are perceived as strategic assets instead of as expendable programs.
Try OSHA Accident Case Studies and give a boost to your safety training program with real-life case studies of actual industrial accidents from OSHA files. We have a great one on lifting. Get the details.
More Important Than Ever
Today’s workers are being asked to do more with less, says Friedman. Employees are often working longer hours, they’re tired, and as a result often at increased risk for injuries.
Friedman believes risk management is even more important when workers are being stretched and the margin of error drops. Losing an employee to injury when there are fewer people to pick up the pieces is especially difficult.
Another problem in times like these is the temptation to file fraudulent claims. Workers are fearful of being laid off. So a back injury that occurred while gardening over the weekend might be construed as a consequence of on-the-job lifting.
As a result of these and other factors, the frequency of comp claims in the United States is up after years of decline, and Friedman says it’s no surprise. He emphasizes that in any economic climate, the best way to save money on claims is to prevent them in the first place.
Get Them Back on the Job
The second best way to save money on comp claims is to get injured workers back on the job as soon as possible. Safety and risk managers need to closely monitor employees’ injuries, recovery, and return.
"Turning a case over to the [provider’s] claims department and telling an injured employee to give you a call when he’s ready to come back doesn’t seem to work," says Friedman. "I’m not saying you shouldn’t hire experts, but you can’t afford to divorce yourself from the return-to-work process."
Even your most skeptical workers will see what can go wrong and become safety-minded employees with OSHA Accident Case Studies. They’ll learn valuable safety training lessons from real mistakes—but in classroom training meetings instead of on your shop floor. Get more info.
Friedman cites the case of one business whose risk manager and chief financial officer make personal, monthly visits to injured workers. This level of involvement sends both the injured employee and co-workers the message that management actively cares about them.
Friedman advises safety and risk managers to stay positive, as well. Don’t assume that workers who file claims are looking for an easy payday. Follow up on why the injury occurred. Keep your eyes and ears open for sources of risk by walking your facility. Listen to your safety committee and find other ways to learn what employees are concerned about. And be sure to let them know you’re considering their requests.
"If people on the floor think supervisor are listening and acting on their complaints, they’ll be more forthcoming, and the level of trust and collaboration will improve," says Friedman. And before you know it, comp claims will be down.
Tomorrow, more on improving workers’ compensation programs. We talk to the disability manager at a company that last year won the National Council on Compensation Insurance award for excellence in risk management.