Reducing your workers comp costs is a not just a one day fix. If done properly, managing your workers compensation program is a gift that will keep on giving. In the spirit of the season, here are 5 additional techniques to help you save in 2013.
1. Manage Vendor Relationships
There is nothing wrong with having a good vendor that has provided great service over the course of the past number of years. But competition is always good for keeping that vendor on their toes. So go ahead and shop around a bit, and see what other companies are out there. You may find a new vendor that can provide better service for a cheaper price. Nothing is written in stone, you can always switch back if the service the new vendor provides is not all that you dreamed it would be.
2. Measure Results in Order to Review Progress
If you have a program in place for light duty work and for getting employees back to work in general post injury, it really doesn’t do any good if you are not tracking the results, and seeing if there are ways you can improve the program. Start a log, and track your program’s results. Bring in some outside help if you have to in order to brainstorm new ideas on cutting down on wage loss exposure. Having a new set of eyes looking at your program may lead to some new ideas that you haven’t thought of.
3. Shop Some New Carriers to See if you can Decrease Your Premium
There are a lot of options out there for insurance coverage. But if you are not out in the marketplace shopping around, you don’t know what is out there. Deductible differences, state-based assigned risk pools, or group self-insurance may be a potential option for coverage, depending on the size of your business. You can look at several carriers, reviewing their staff, locations, claim management services, closing ratios, service expectations, and the list goes on to find a perfect fit for your exposure.
4. Get Involved in the Overall Comp Process
Employers play a key role in developing or updating workers compensation laws in the various states. All states are different, and some states have been very active lately in updating their dated comp statutes. States legislature boards will listen if employers come together and state their problems. The squeaky wheel will eventually get the grease, even though at times this will seem like a process that takes forever. If everyone chooses to let someone else do it, then nothing will change.
5. Solicit Feedback From Your Employees on Workfloor Issues
One of the most important assets is your staff. These are the guys and gals that work every day on your floor, doing the job tasks day in and day out, for months or years at a time. Since they are spending their time working, it’s a good bet that they have some ideas that could make job tasks easier, decreasing risk and therefore decreasing injuries and the associated costs. So hold a meeting and see what your employees have to say. You may stumble upon a fantastic idea that could revolutionize the way you do business.
The best way to implement major change is through a series of small steps. Bite off what you can chew and do not be afraid to ask for help.
Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com.
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