3 Metrics To Combat Silent Killer Of Workers Comp Costs


Have you ever walked into the bathroom, stepped on the scale, said, “Whoa. How did that happen?” Or maybe got your credit card statement in the mail, took a look at it and said, “That’s not good,” or maybe looked at what you were paying in workers compensation premiums and said, “How did things get so bad?” I’m Michael Stack with Amaxx and today I’m going to be talking about a very important concept to understand called Drift. I’m going to tell you a little bit of a story.

 

 

Drift Happens When You Are Not Paying Attention

 

My companies been around for over 25 years, and we’ve worked with hundreds or organizations implementing a system of workers compensation management. Now there’s companies we worked with many years ago, we helped them to implement their systems and they achieved a minimum of 20% and often times greater than 50% reduction in workers compensation cost. Then that project will end, and time will start to go by. Five years go by, ten years go by, maybe some personnel changes happen at the organization, maybe the culture starts to shift at the organization, maybe they’re not doing the training and implementing some of the systems and training their employees as they’re supposed to be internally.

 

Now 15 or 17 years go by and we get a call from that same organization that says our Workers Comp program is a disaster, can you help us? How does that happen? How do we get those surprises on the scale? How do we get those surprises in our credit cards statements? Let’s take a look here, where your boat is close to the dock, everything is going well, systems are running just as they’re suppose to. Then time starts to go by, and little by little, little by little, little by little, little by little, little by little, little by little, little by little your boat ends up all the way over here in what happens to be some very rough water.

 

Now when our personal lives it’s about finding a system of management that works for you. In Workers Compensation management, it’s about paying attention to very specific metrics to understand where you are in your process and in your program.

 

 

Three Workers’ Compensation Metrics

 

I want to give you three very important metrics to understand and track.

  • The first one is your lag time. How quickly are your employees reporting their injuries?
  • Second one, your return to work ratio. Again, how quickly are your injured workers getting back to work?
  • The last one is the cost per FTE or the cost per full-time equivalent employee. A great way to track the period over period of even division to division to compare apples to apples in how you’re doing.

 

Now, if you don’t know how to track these metrics, leave a comment or send me a message, I’ll be happy to provide some additional information to where find this information and track-in your organization. If you’re watching this video somewhere other than reduceyourworkerscomp.com, go ahead and go to that website, sign up to receive a lot more free information on how to control your workers comp costs. If you want to take it one step further, I invite you to join me as a guest on my next live-stream training. Go to workerscompclub.com/livestreamtraining. Again, I’m Michael Stack with Amaxx and remember your success in Workers Compensation is defined by your integrity, so be great.

 

 

For additional information on workers’ compensation cost containment best practices, register as a guest for our next live stream training.

 

Author Michael Stack, Principal, COMPClub, Amaxx LLC. He is an expert in workers compensation cost containment systems and helps employers reduce their work comp costs by 20% to 50%.  He works as a consultant to large and mid-market clients, is co-author of Your Ultimate Guide To Mastering Workers Comp Costs, a comprehensive step-by-step manual of cost containment strategies based on hands-on field experience, and is founder of COMPClub, an exclusive member training program on workers compensation cost containment best practices. Through these platforms he is in the trenches on a working together with clients to implement and define best practices, which allows him to continuously be at the forefront of innovation and thought leadership in workers’ compensation cost containment. Contact: mstack@reduceyourworkerscomp.com.

 

 

©2016 Amaxx LLC. All rights reserved under International Copyright Law.

 

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.

 

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