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Top Three Strategies for Reducing Costs in Your Workers’ Compensation Processes

Reducing the Costs of Workers' Compensation

Accidents happen – even in the most safety-conscious workplaces. From repetitive strain injury to more serious ailments, workplace injuries must always be taken seriously. And as a business owner, you have to be prepared for these situations. Your workers’ compensation process can determine the fate of your business.

If you operate in the manufacturing, hospitals, or human services industry, you know for a fact how expensive worker’s compensation insurance is in these fields. It’s often one of the biggest expenses facing small businesses. Each incident affects future premiums, which makes workers’ compensation processes increasingly volatile.

Is there anything you can do to reduce your worker’s compensations costs? Yes, absolutely.

Workers' Compensation Process Cycle

Workplace injuries can significantly impact business operations. They can reduce productivity and strain your bottom line. It is critical to have a plan in place to handle the workers’ compensation process and help your injured employees recover in the least amount of time. Reduce injuries, reduce costs, and improve your employee health and safety programs today.

Build your strategy with Emidence XD! Book a Demo.

How to Reduce Workers’ Compensation Costs

In addition to your workers’ compensation insurance premiums, safety incidents also result in indirect costs which you might not have considered. For instance, you’ll need to repair damaged equipment, adjust work schedules, close certain sections for investigation, implement corrective measures, and hire and train replacement personnel.

Conversely, your productivity might take a hit as you deal with lower employee morale. Workers’ compensation can seriously set your company back if you don’t have the right processes and procedures in place.

If you’re looking for ways to reduce costs associated with your workers’ compensation processes, here are some strategies to get you started.

1. Set Up a Safety Program

First step: Always be prepared. Don’t let a safety incident find you off-guard. When things go wrong, you don’t have time to weigh the options. You must respond and respond fast. If you don’t have one already, develop a well-crafted safety management policy.

Better workplace safety policies result in fewer incidents. Couple your safety control policy with a disciplinary program to hold employees accountable for breaking safety procedures and a reward program for following the rules.

Not to mention, safety programs have quite the ROI, with businesses saving $2 to $6 down the line for every dollar invested in injury prevention.

2. Build a Return-to-Work Program

Even with the most comprehensive safety programs and procedures in place, rogue accidents are inevitable. A return-to-work (RTW) program establishes the protocols that determine how an injured/unwell employee can return to work.

For instance, employees can return in a temporary or light duty capacity at first as they get well enough to resume normal duties. Also, an RTW program establishes the guidelines for employees disabled on-the-job to return to work in a modified capacity.

An RTW program has direct cost benefits to your workers’ compensation claim. Getting injured employees back to work in some capacity lowers the risk of litigated claims which can increase costs and extend the workers’ compensation process. Keep in mind that the longer the compensation claim stays open, the more expensive it will be.

An active RTW program also carries various indirect cost benefits. It improves employee morale as your people know that you’ve got their back if something were to happen. As a result, a return-to-work program increases productivity and reduces turnover.

3. Automate Your Workflows

Finally, the biggest secret of them all. Digitally following an employee through the workers’ compensation system lifecycle can significantly reduce the cost of claims. For instance, Emidence XD is a cloud platform that can help you manage your workforce health, safety, and medical care programs in addition to compliance management. It’s a complete employee health and safety (EHS) solution that provides you with all the functionality you need to manage and control workplace health and safety. You can now unify workforce health, employee safety, medical care, insurance, and worker’s comp claims, with embedded regulatory compliance management on a single cloud platform.

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Worker’s Compensation Claim Process

What are the benefits of going digital?

  • With digital management of claims, you get an easier look at how a claim advances towards either approval or denial. It provides you with a trustworthy, centralized information system that can help detect fraud and reduce the lifecycle of claims.
  • Going digital also helps you stay in close contact with the injured employee. With open communication lines, you can resolve claims much faster and get the employee back to work as soon as they feel ready.
  • Support injured employees and reduce costs with case management, from the initial incident report to claim closure and return-to-work initiatives.
  • Comprehensive reporting on employee incidents with a centralized database.

 

An insurance claim can quickly become a headache if handled inadequately. Going digital enables you to keep track of your safety programs and manage every aspect of your workers’ compensation processes.

Go Digital with Emidence XD

Workplace injuries can significantly impact business operations. They can reduce productivity and strain your bottom line. It is critical to have a plan in place to handle the workers’ compensation process and help your injured employees recover in the least amount of time. Reduce injuries, reduce costs, and improve your employee health and safety programs today.

Build your strategy with Emidence XD! Book a Demo.

Ready to learn more? Book a free demo