Used effectively, data may be helpful in increasing visibility and gaining commitment particularly when integrated with safety data because the two are closely correlated. In order to properly manage a business process, you must be able to MEASURE it! Doing a calculation is easy, just enter data here.
Senior Management may not be familiar with the types of data available or which data will most closely meet their needs. Actually, senior management may not even know that workers’ comp is a controllable cost if they see workers’ comp costs only during annual budget meetings.
Tip: As soon as cost reductions are visible, show the data to senior management to gain added management commitment and resources.
Hint: As you define and track relevant data, make sure senior management is aware of the results. They may have been initially hesitant to spend money but data can help convince even the most resistant executive. Management should receive workers’ compensation data frequently – usually monthly – broken down by department or division.
This should be done for several reasons:
1. Data allows management to see workers’ compensation as an expenditure rather than an annual budget item.
2. Data can demonstrate variation between divisions and help promote healthy competition. If management sees the WC Losses at Unit #1 are $20/per employee while at Unit #2 they are $400/per employee, they will soon ask what Unit #1 is doing that Unit #2 is not.
3. This helps allow senior management to provide feedback to operations management especially if they have not gotten on board with the program.
4. Data can demonstrate that it is possible to TAKE CONTROL of workers’ compensation costs and effectively manage them.
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@WorkersCompKit.com
