Senior management needs to be kept abreast of major workers’ comp problems and situations. The degree of information needed depends on preferences and jobs of each senior executive. In general, senior managers such as division presidents, regional managers need to know the generalities of what benefits are available and under what conditions. 1-2 paragraph about the topic is all that is needed. General managers in charge of operations may need to have more detail since they handle day-to-day operational issues.
In addition, you want to have the dollars at the tip of your tongue because THAT is what senior management relates best to. Be able to tell senior managers how much the annual cost of workers’ comp is, and how much in sales it takes to replace the money spent on workers’ comp. Break that down to the average weekly costs or the average per office/operation cost. You should know how much of that cost is retained loss and how much is premium. Reductions in retained loss can be made immediately. Know how many employees are out of work. This is an important number because for every employee out of work there are replacement labor costs and lost benefits costs.
Also, make sure senior management knows that workers’ comp is a CONTROLLABLE expense and you intend to begin the cost control process immediately. Let them know you will keep them informed of all major operational changes and of course you will seek approval for all such changes in the appropriate chain of command within your organization. Ask for support for your workers comp cost control program.
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.
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