Top 10 Excuses For Not Reducing Work Comp Costs

What are the biggest challenges for small, mid-sized and large businesses nationwide today?


Yes, competition is certainly a challenge that many face. For others, it is finding and retaining the best employees to get the job done and meet the satisfaction of customers. Still others find challenges in getting their message out to consumers.


With that said, reducing workers compensation costs is something that any business owner of any size should never overlook.  Whether a 30% savings for you equals $3,000 or $300,000, there is no reason a business should be overpaying for workers compensation.


Among the Top 10  excuses businesses claim for why they have not implemented a program to reduce their workers compensation costs.



  1. Too costly, something that in reality is a misperception, referring to the cost containment process;
  2. The business is decentralized and its operating units are in fact autonomous;
  3. The company is centralized, thereby making it unable to have any sort of influence on the operating units’ decision-making;
  4. The business is unionized, therefore the union will forbid it from making the necessary changes (in most cases, this is simply false);
  5. A business that is too large (one with an abundant amount of silos, regulation and inflexibility) or too small (too few resources) can’t decrease costs;
  6. The business simply believes it is unable to have a return to work program;
  7. The company believes it is unable to produce modified or transitional positions in its environment;
  8. The company’s management does not back them (bad take in order to achieve commitment);
  9. In fact, the claimant’s (plaintiff) attorneys are the root of the problem, making it imepossible for the company to improve;
  10.  Those businesses based in other countries with U.S. operations claim there is too much litigation in America.


At the end of the day, many businesses simply do not have the wherewithal on how to go about decreasing comp costs.


In fact, with a little time and effort, many of the roadblocks to reducing comp costs can be turned aside, despite what seems like overwhelming obstacles at the start of a cost containment program.


Pick One Strategy And Get Started


The best way to go about it is to break down the process into smaller pieces, making it easier to handle over time.  Pick one simple piece of the puzzle like injury response, or return to work and get started.  As the great Zig Ziglar said, “you don’t have to be great to start, but you do have to start to be great!”





Author Michael B. Stack, CPA, Principal, 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.  Contact:


©2014 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law.





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