Over the years, I have heard the same obstacles (reasons) over and over and sometimes they are valid, but usually they are the result of simply not knowing how to get the cost containment process started. The Top Ten Reasons companies say they can’t reduce their workers’ comp costs:
1-It’s too expensive (a misperception that the cost containment process will be costly).
2-We’re decentralized and our operating units are autonomous.
3-We’re centralized and are not able to influence the operating units’ decisions.
4-We’re unionized and the union will never allow us to make the type of changes needed (almost always not true).
5-We’re too big (and have too many silos, regulation and inflexibility) or too small (and have too few resources).
6-We can’t have a return to work program (long held belief).
7-There are no modified or transitional positions possible in our environment.
8-Management doesn’t support us (wrong approach used to gain commitment).
9-Claimant (Plaintiff) attorneys are causing the problem and make it impossible for us to improve (frustration).
10-Companies based overseas with US operations say: it’s because you are litigation crazy in U.S..
The truth is, most companies lack knowledge about how to reduce their costs, and if they know how, they do not have the resources. After we’ve worked through the obstacles in a planned manner, however, the obstacles melt away as the company gains a comfort level with the process of workers’ compensation cost containment. It seems that these same obstacles are raised no matter what the improvement suggestion — because it seems so overwhelming when a cost containment program begins. When the process is broken down into smaller steps, it’s less onerous and easier to manage. It’s less of a hurdle.
The most important step is the first step — GET STARTED. It doesn’t have to be perfect, it just has to be one step in the right direction. Companies can get started for less than $100 with Workers Comp Kit.
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.
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