Charging Losses To Responsible Unit Is Key to Workers Comp Cost Reduction

This is a key to holding management accountable for results of safety and post loss programs. Employers with charge-back systems understand the need to bring accountability down to the facility level. Doing so brings accountability down to the unit level, middle management level and departmental level. With financial accountability, middle management enforces the rules at a local level such as bringing the employees back to work in transitional duty assignments. It brings people closest to the employee into the loop by localizing accountability.

Accountability becomes up close and personal. For example, a division manager who has been “hit” with a sizable charge-back will call the general manager of the operation where the loss occurred, who then calls the department responsible for transitional duty, who then customizes a temporary assignment and contacts the employee with a job offer. It’s just like when a company establishes a safety program and the CEO says “YOU WILL USE SAFE WORK PRACTICES” then everyone starts pushing in their chairs, using proper lifting techniques, etc. They have imposed the safety culture on the rest of the company by holding everyone accountable.

With companies that do not charge-back losses to the operation where those losses were incurred we may want to ask why they are not doing so. Is it because there losses are so low they feel the do not need it or is it because they feel it is too onerous to set up a system to do so. Or, do they question the effectiveness of such a program.

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.