I am often asked why, when doing an assessment, I ask “Do you have at least one book about workers’ compensation on your shelf?” It sounds so silly, but it’s really not. The companies with the lowest workers’ compensation costs have resources! I’ve seen it over and over. It goes like this … there are three divisions in a company and two don’t have any books about work comp on their shelves and one DOES have a book. The one with the book always has lower losses and employees back to work sooner.
Companies in the know, know what they don’t know and almost 100% of the time have at least one book on workers’ compensation on their shelf. I’m not just saying this because Amaxx publishes a book on Workers Comp Cost Containment (although it’s a great book), I’m telling you this because it’s the truth.
Clients argue that “they ask their brokers and their TPAs” about workers’ compensation cost containment so on the National Workers Compensation Management Score, they should get an extra point for asking a broker, carrier or TPA about workers’ comp cost control. But, there’s a difference. Much of the time that’s reactive, not proactive. And you don’t have it “at your fingertips” to browse at will.
Newsletters, conferences, and your brokers, TPAs and carriers offer great information, but you need a resource at your fingertips, especially if you plan to teach others on your team about workers’ comp cost control, but it’s not realistic to rely on your broker for a complete education. Many offer excellent seminars and have consulting expertise which can supplement the other tools you have at your disposal.
Over the years, I’ve used several resources including IRMI. You can read about that on my site at IRMI Manual. And U.S. Chamber of Commerce WC Analysis. I bet your broker has this and you can get a free copy from them.
Learn about IRMI WC Manual: http://www.reduceyourworkerscomp.com/IRMI-Workers-Comp-Guide.php You’ll receive a 10% discount if you use our WC8 Code.
Read about Amaxx book here: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php Receive a 20% RIMS Member discount.
WC Calculator www.ReduceYourWorkersComp.com/calculator.php
TD Calculator www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101 www.ReduceYourWorkersComp.com/workers_comp.php
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel or other professionals before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
It is often hard to get started, just getting the momentum to get moving sometimes seems overwhelming especially when the task is as large as “reduce your workers comp costs.” It’s so difficult to get started, in fact, that many companies don’t EVER get started.
Several things that may help:
1- Choose 1-2 changes – Eat elephant in small bites — not all at once. It’s a big task, so break it down into smaller ones.
2- Start Now – Don’t wait until all the “lights are on green” to drive down Main Street. Everything doesn’t have to be perfect for you to get started. The important thing is to JUST START.
3- Delegate some of the load - If you plan many changes, learn to delegate to others. You can plan, but you may need help with the execution of the tasks.
4- Hold Everyone Accountable – Use a Timetable which is updated every week — list each task, who is responsible for completion of the task, and the time-frame for completion. Click here to see a sample: TIMETABLE SAMPLE
WC Calculator www.ReduceYourWorkersComp.com/calculator.php
TD Calculator www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
WC 101 www.ReduceYourWorkersComp.com/workers_comp.php
Learn about our BOOKS and MANUALS for sale.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel or other professionals before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
I have had many companies want me to let them use the training programs developed for other companies. There is a reason I do not loan or reuse training materials — it is NOT effective way to train. Each training program is designed based on each company’s specific needs. Often this is determined by a corporate-wide “needs assessment. When you are designing a training program for your company, make sure to do a needs assessment, then design the curriculum and then the training exercises. Validation of learning mastery is also important to ensure participants understand the curriculum.
A training program is designed according to what the “learners” will “do differently” after the training. Contrast a decentralized company with 20 workers’ comp claims coordinators with a training program designed for a centralized company with 1 risk manager and 3 return to work coordinators. These 3 return to work coordinators will do a very different job than the 20 workers’ comp claims coordinators. The later may be more hands-on thus the training program may be a workshop rather than class-room style training.
Curriculum is designed according to the needs of the “learners”. First, we determine what the particpants will “do differently” after the training. For example, will they need to contact an injured worker after the training, or will they need to monitor claims adjusters but make no contact with injured workers? The training needs of these two different participants is very different. Course content will be different. The exercises needed to teach these skills are different. So, the training programs are likely very different.
Your training program will be designed depending on a needs assessment of your company. Take this approach, and you will likely save your company a significant amount of money. Our average cost reduction is 20-50% reduction in loss costs based on year over year figures taken at point-in-time snapshots.
Try the WC Cost Calculator to show the REAL COST of work comp.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
If your company has a large, decentralized workforce, you may need a dedicated person responsible for coordinating injured employees return to work efforts. It's probably not enough to have a Transitional Duty Policy, you may need personnel to coach employees, support local management and and follow through with other actions in your workers' compensation program. The RTW Coordinator or WC Coordinator can play the central role of coordination. Here are 8 things a WC Coordinator or RTW Coordinator can do: 1-Contact Local Management or HR to help them bring every injured employee back to work. 2-Assist the General Manager (GM) determine suitable transitional duty jobs for every injured employee. 3-Make sure the TPA or claims administrator has all the documentation needed for claim processing and return to work placement. 4-Make sure the TPA or claims administrator know about your workers' compensation cost containment process. 5-Inform the payroll department when an employee is receiving indemnity payments (lost wages) so regular pay can be discontinued. Make sure the employee has not filed for unemployment. 6-Assist the GM with maintaining frequent contact with the injured employee, including attend weekly meeting with the employee and GM. 7-Familiarize local management with the new WC Cost Control Process. 8-Follow up on each step of the claim until the employee is back to work full duty in their original job by removing EVERY obstacles that gets in the way of a complete return to work. Try the WC Cost Calculator to show the REAL COST of work comp. Look at WC 101 for the basics about workers comp. Workers' Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
As a productive member of your workforce, employees must participate in your Workers' Compensation Claims Management Program. Here are nine things you might want to require: 1. Accidents must be reported immediately after an injury. 2. Injured employees must bring your injury treatment form to the doctor who treats them, and must get this from updated at intervals you request (e.g. every two weeks). 3. Have their doctor fax this form to the workplace within 24 hours of each appointment. 4. They must attend weekly status meetings at the workplace (unless they are bedridden) until they are back to work in their original job at full capacity. If they are bed-ridden a nurse case manager can make a home visit, if approved by your legal counsel. 5. Be available for medical appointments and company meetings during normal business hours. 6. Provide updates about their medical condition. 7. Participate in the transitional duty program as required by policy. 8. Comply with all program policies. 9. Sign an acknowledgement form stating they have been informed of and understand all requirements. Provide them with an Employee Brochure explaining these requirements. Learn about all FORMS available in Workers' Comp Kit at www.ReduceYourWorkersComp.com WC Calculator www.ReduceYourWorkersComp.com/calculator.php TD Calculator www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php WC 101 www.ReduceYourWorkersComp.com/workers_comp.php Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Step 4. Supervisor Involvement
Supervisors also participate to enhance communication and to reinforce employee teams. Each month, employee raffle cards are delivered to employees personally by their immediate supervisors. The completed raffle card is returned by employees to their supervisors within five days. It is crucial supervisors deliver the raffle cards to each employee personally to establish rapport with and reinforce their co-participation in the program. Supervisor involvement facilitates communication. Where there may have been no active communication between the supervisor and a given employee before, there is now. Supervisors are encouraged to actively motivate employees to work toward the corporate goals of absence management by participating in this venture.
Program Specifics
The absence management program is preceded by intensive communication to raise employee awareness, using employee brochures, posters with absence management themes, public posting of the teams and players and eligible prizes.
Raffle cards are distributed at the first of each month. The cards are the employee’s entry for the monthly raffle and contain monthly absence management messages. Each card has a space where employees can comment on absence management policies and procedures. When employees return the signed raffle cards to their supervisors, they are, in effect, actively participating in the absence management reduction program.
Contest suspense builds until the raffle drawing at the end of each month. If there are disqualifying absences, the names of the employees and their teams appear next to the prize with the words “Disqualified by” preceding the names.
Raffle cards are put into clear drawing bowls at the appropriate time and location, and the drawing held with as many employees present are possible. Each name is announced as the card is drawn, the team lists checked to determine eligibility. If employees are eligible, their eligibility is announced. If the employee is ineligible, this too is announced
Values
Value systems quite often exist in relative states. Though each individual holds personal values, these values may be quite flexible and subject to change when sufficient pressure is exerted from the social environment to change those values.
Employers who want to communicate and enforce a change in employee value systems may consider team-building an effective communication tool. The team-building approach to absence management is a proven way to reinforce company standards. At the same time, team-building alters the value systems of employees and ultimately reduce the costs associated with chronic absenteeism.
The survival of each teammate depends on the performance of the team. The impact of team-building and peer pressure has far reaching ramifications on the employer’s ability to control costs resulting from needless absenteeism.
Try the WC Cost Calculator to show the REAL COST of work comp.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Absence Management Facilitators (AFM) or Workers Compensation Management (WCM) Facilitators, are two common titles for those who manager integrated disability management programs. Companies with Integrated Disability Programs have Absence Managers, others have Workers Compensation Managers/Coordinators.
To establish acceptable and unacceptable standards of absence, employers look to absence management vendors or facilitators. Often the Workers’ Compensation Manager or Coordinator can assume this role. The AMFs help employers establish baseline measures, identify goals and develop action plans for goal attainment. They must have a “coaching” ability to bring people and “sides” together.
Both employers and employees typically perceive independent vendors as impartial to either side. Thus, the potential for management and employee discord is defused because the facilitator is the focal point in transforming employee value system. Internal staff can also be impartial. This is something that must be considered in the screening process.
To kick off the program, an absence management facilitator typically focuses on three activities:
1- Arranges initial briefings with supervisors and managers. Use open-ended questions to elicit discuss.
2- Conducts initial assessments of the organization’s structure and hierarchy, locations, and absence patterns.
3- Develops a system of rewards, penalties and communication techniques, all designed to deter employee absences by creating a corporate culture making chronic absenteeism socially unacceptable. Continued in next blog …
Try the WC Cost Calculator to show the REAL COST of work comp.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
Reducing Chronic Absence
When reducing chronic absenteeism, companies engage in strategies, such as opting for a cross between the “I’m Okay, You’re Okay” (IOYO) concept2 and Operant Conditioning3. Obviously, you’ll never explain the concepts to managers and supervisors in these terms, however, our director of training with a degree in teaching explains it like this, so I’m passing it along…
IOYO incentive programs are based on the performance of the individual, i.e., employees caught in the act of being good are rewarded. Thus, errant employees conform to corporate standards, and their rate of absenteeism subsequently decline. The individual has only himself or herself to measure performance against the corporate standard, which may work well for highly motivated individuals, but not so well for those engaging in chronic absenteeism.
In organizations where 20 percent of employees routinely take sick days or experience lengthy illness and constitute 80 percent of absence costs, employers must consider a departure from the traditional reward paradigms. Companies must act quickly before absenteeism becomes a drain on fiscal health, the goal being to bring all employees’ value systems into line company standards.
As the employer works with the employee benefits manager to develop a strategy to control absenteeism, a solid plan design is constructed contain four elements of effective communication tools, program administration and funding.
Four Elements are:
1. Value systems and absence management
2. Absence management facilitators (AMFs)
3. Peer pressure through team building
4. Supervisor involvement
1. Value Systems and Absence Management
Corporate culture impacts the absence practices of employees. By using team-building employers take the novel approach of altering the value systems of their employees4.
Value systems consist of attitudes, perceptions, and widely held beliefs individuals hold about themselves, their relationships with their peer groups, and their standing in the community or the organization where they work. Every one has an attitude toward work, a perception of himself or herself as a worker, a belief in his or her capability to perform work at a given level.
Inherent in the work ethic is an attitude toward absenteeism with employees existing on a continuum concerning work ethics, attitudes toward work and absenteeism. There are three types of employees. Those who are never absent, experience average absences or are chronically absent. Altering employee value systems means employers work to bring employees with high-frequency, short-duration absences into line with the corporate value system. Continued … in Step Two.
Endnotes:
2. Thomas Harris, I’m Okay, You’re Okay. A guide to Transactional Analysis, Harper & Row Publishers, New York (1969), Harris builds on earlier theory of transactional analysis, an interactive theory originated by Eric Berne in his book, Games People Play, Grove Press, New York, (1964).
3. B.F. Skinner, a Harvard behavioral psychologist, posited the theory of operant conditioning. Skinner argued behavior is determined by external forces. The consequences of a given behavior will determine whether the frequency of the behavior will increase or decrease.
4. Joseph J Martocchio, “The Effects of Absence Culture on Individual Absence,” Human Relations, 47:3, 243 (1994).
Try the WC Cost Calculator to show the REAL COST of work comp.
Look at WC 101 for the basics about workers comp.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
MYTH: Workers' compensation cost containment programs are a "quick fix" to the high costs of workers' compensation. REALITY: An effective workers' compensation cost containment program is a systematic and thorough approach to cost reduction – not a "quick fix." It focuses on multiple areas which are all tied together with an effective communication strategy. The design and development of a workers' compensation cost containment program can be done within a few months if there are dedicated resources making this a priority. Robert Elliott, senior vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality. Contact him at: Robert_Elliott@reduceyourworkerscomp.com or 860-553-6604 For more cost-saving tips go to WC Cost Reduction Tips. Show the REAL cost of workers' comp with the Real Cost Calculator. Workers' Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch. Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs. ©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
MYTH: High workers’ compensation costs are caused by aggressive plaintiff’s attorneys and laws which favor employees.
REALITY: While it is true to a limited extent that aggressive plaintiffs’ lawyers prolong an employees time out of work, thus making the cost of the claim higher, and that laws which are viewed as claimant-oriented also drive the cost of a claim higher, what plays a larger role in driving the cost of a claim are several workplace factors which a company CAN control. Inaction and lack of planning, poor communication with the employee, adjuster and medical providers are major gaps which drive the cost of workers’ compensation higher. Poor workplace morale and failure to take advantage of existing opportunities are other gaps in company processes which drive costs higher. These gaps cost companies millions of dollars each year by failing to use the tools already available to them.
For example, if you operate in a state where employees are allowed to go to the physician of their choice, you can “coach” them to a physician who is an advocate of transitional duty. Some will use the doctor you suggest. If the employee’s doctor has visited your operation to see the jobs the employees perform, it can be helpful to build a solid relationship between the company and the treating doctor. There are many things a company CAN DO, which are within their control, to reduce their costs.
Robert Elliott, senior vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality. Contact him at: Robert_Elliott@reduceyourworkerscomp.com or 860-553-6604
For more cost-saving tips go to WC Cost Reduction Tips.
Show the REAL cost of workers’ comp with the Real Cost Calculator.
Workers’ Comp Kit® is a web-based online Assessment, Benchmarking and Cost Containment system for employers. It provides all the materials needed to reduce your costs significantly in 85% less time than if you designed a program from scratch.
Do not use this information without independent verification. All state laws are different. Consult with your corporate legal counsel before implementing any cost containment programs.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact Info@ReduceYourWorkersComp.com
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