Show Me the Savings: Using Data to Sell RTW to the C-Suite

Transitional duty programs are one of the most effective ways to reduce workers’ compensation costs, improve employee outcomes, and lower your experience mod. But if you’ve ever tried to pitch a return-to-work (RTW) program to senior leadership, you may have hit a familiar wall:

“Sounds good, but what’s the ROI?”

Thankfully, there’s a clear, quantifiable answer—and it comes in the form of a Return-to-Work Cost Calculator. This tool allows you to turn lost time into real dollar figures, speak the language of business leaders, and build the business case for investing in RTW programs.

Let’s explore how you can use this calculator to gain leadership support and drive smarter workers’ comp decisions across your organization.

Why Numbers Matter in the Boardroom

Executives are constantly balancing priorities, and unless you can tie your RTW proposal directly to cost savings, profitability, or risk reduction, it may not get the attention it deserves.

That’s where the RTW Cost Calculator shines. It shows—in concrete terms—how bringing an injured worker back to the job even a few days earlier can protect margins and preserve capital.

Consider this real-world scenario, drawn from industry data:

Example: A 35-Day Return-to-Work Delay

Let’s say an employee is out of work for 35 days longer than necessary due to lack of a transitional duty program. Here’s the breakdown:

• Indemnity cost per day (lost wage payments): $250

• Replacement labor cost: $3,000

• Total direct cost = ($250 x 35 days) + $3,000 = $11,750

Now apply your company’s profit margin to understand what it takes to recover that cost.

• If your profit margin is 4%, it would take $293,750 in new revenue to replace the $11,750 loss.

That’s a staggering amount—and that’s just one claim.

What the Calculator Actually Measures

A solid RTW Cost Calculator (such as the one found at LowerWC.com) measures:

• Estimated number of days saved through transitional duty

• Daily indemnity cost based on average wage replacement

• Added replacement labor costs if a temp or overtime labor is used

• Your company’s profit margin to calculate true impact on bottom-line earnings

These inputs turn abstract RTW concepts into decision-ready data for leadership.

How to Use the Calculator to Win Support

✅ Step 1: Gather Real Claims Data

Start by reviewing recent workers’ comp claims where no transitional duty was offered. Identify:

• How many days the employee was out

• When medical clearance for light duty occurred

• Whether a transitional duty offer could have shortened time away

Plug this information into the calculator for each case.

✅ Step 2: Build a “What If” Report

Use the calculator to show two scenarios:

• Actual cost of time away

• Projected savings if transitional duty had been available

A side-by-side comparison shows executives the cost of doing nothing.

✅ Step 3: Estimate Program-Wide Impact

Multiply the projected savings from one or two cases across your typical annual claim volume. The totals are often shocking—and persuasive.

✅ Step 4: Tie It to Premium Reductions

Explain how keeping claims in the “medical-only” category avoids lost-time claims, reduces your experience mod, and lowers premiums for three years per claim.

This long-term view is especially compelling to CFOs and COOs.

What Makes This Strategy So Effective

• It’s objective – You’re not asking for gut-feel decisions or “just trust me” arguments. You’re showing math.

• It’s simple – The calculator does the hard part. All you need is a few data points and a basic understanding of workers’ comp math.

• It’s scalable – You can use it on a single claim, a department, or your entire company.

Tips for Presenting the Data to Leadership

• Keep it visual: Use charts or infographics that show days saved vs. dollars lost.

• Keep it relevant: Use real internal examples, not generic industry stats.

• Keep it focused: Emphasize how this ties directly to margin, profitability, and insurance renewal outcomes.

• Keep it solution-oriented: Pair the problem with an action plan to build or expand your RTW program.

Final Thoughts

Getting leadership to invest in transitional duty and return-to-work programs isn’t about compliance—it’s about clarity. Clarity on the cost of delay. Clarity on the opportunity to save. And clarity on how small operational changes can lead to big financial wins.

With the right tools and approach, you can turn lost time into a business case that leadership can’t ignore.

Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

Contact: mstack@reduceyourworkerscomp.com.

Workers’ Comp Roundup Blog: http://blog.reduceyourworkerscomp.com/

Injury Management Results (IMR) Software: https://imrsoftware.com/

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