If you want to be successful in worker’s compensation. So much of what we do early has an impact on what happens late. Hello, my name is Michael Stack. I’m the CEO of Amaxx and that idea of what happens early impact what happens late. We know that such important as far as what happens immediately following an injury, but even before then we take it all the way back to the beginning of when an employee is hired, the impact that that process of onboarding that employee of training that employee, and then also selecting the right employees makes on our work comp costs is tremendous.
Trial by Fire
Today I want to talk through the results of a study called Trial by Fire, the impact of job tenure on workers’ comp claim costs. And I one bring your attention to this, to have you put some focus and thought and attention onto your hiring process, as far as the impact it can make on your costs and on your injured worker outcomes.
4-6x the Injury Rates
So let’s talk about this within the first month of hire within the first month of hire four to six times, the injury rates as compared to someone one plus years within the first month of hire four to six times, the injury rates as compared to someone with one plus year experience massively impactful four to six times. That is a huge amount. When we’re talking about putting our systems in place less than one year on the job was the single most significant predictor, single most significant predictor of work-related injury, frequency, single most significant predictor of work-related injury frequency, how quickly claims are happening. Let me draw your attention back to here. Four to six times the injury rates. Let’s talk about this in increased injury risk. That’s probably not much of a shocker. When we look at these two other results of the study and increased injury risk, and two to four times the loss costs, relatively individuals that have been working at an in job site and an employer that are new.
Nothing More Frustrating
There’s nothing more frustrating than someone that comes to work for you and then gets hurt within the first week. And you’re like, what the heck? This person just got hired. And now they’re out of work for, you know, X amount of time. It’s very frustrating. It’s very costly. And it happens a lot through frustrating. It’s very costly and it happens a lot. I want to draw your attention to this just when you’re thinking through your hiring process, the importance of it. So much of what we do in workers’ comp is what we’ve planned for before anything ever happens. What we’ve for from an injury management standpoint, from an injury response, stand from a communication standpoint, from a return to work, slammed point, everything we’ve planned for from a post-injury standpoint, it’s so critically important. Everything we’ve planned for, from a hiring and actually which employees are going to be going through our company culture and potentially ultimately be me being the ones that are getting hurt.
Put Structure to Hire the Right Employees
We want to put the right employees in place right out of the gates. If you can put some structure in place, put some planning in place before you ever hire these individuals, your injury rates are going to go down. Your costs. are going to go down. Oh, by the way, your frustration is going to go down as well.
Again my name is Michael Stack. I’m the CEO of Amaxx. Remember your work today in workers’ compensation can have a dramatic impact on your company’s bottom line, as we’ve demonstrated from just putting some simple hiring practices in place, but it will have a dramatic impact on someone’s life. So be great.
Author Michael Stack, CEO Amaxx LLC. He is an expert in workers’ compensation cost containment systems and helps employers reduce their workers’ comp costs by 20% to 50%. He works as a consultant to large and mid-market clients, is a 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 the founder & lead trainer of Amaxx Workers’ Comp Training Center, which offers the Certified Master of Workers’ Compensation national designation.
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