2 Simple WC Metrics To Clarify Action Plan

When it comes to workers’ compensation data, most employers are drowning in information yet starving for meaning. Hello. My name is Michael Stack. And if you don’t know me yet, I’m the CEO of AMAXX. And since two thousand and eight, I’ve helped employers and stakeholders that serve employers optimize workers’ comp injury management systems.

We do that through our workers’ comp training certification programs, our IMR data metrics suite, and our Remus product. Now that statement regarding data…that employers are just drowning in it and starving for meaning, it’s incredibly accurate, particularly with the advancement of AI and ChatGPT and Claude and Gemini, etcetera. There’s so much data out there…that we don’t know what to do with it. We don’t know how to actually make it actionable.

Two Simple Macro Drivers

So I wanna talk to you today about two very, very simple drivers that when you’re looking at your work comp program and you’re looking at the overall costs here at the top of the pyramid, you’re breaking it down into two simple macro drivers…that all cost containment strategies fall under. All workers comp cost containment strategies fall under one of these two things.

And when I say them, you’re gonna say, oh, well, that’s really simple. That’s really easy. Why am I even watching this video? And I will tell you why… Because we get lost in it. We get lost in the weeds.

Frequency and Severity

There’s two primary things. Frequency, which is the number of claims or incidents you’re having. How frequent are you having injuries, and severity, which is the cost per claim, the cost per incident.

If you wanna impact your overall cost, it’s gonna come from one of those two drivers.

Where People Get Lost

Now there are a whole bunch of things down here that you can do. And I’ve got a training called five critical metrics. So we walk through this. We built it a metrics scorecard through our metrics suite…that breaks all this down in simplicity. But all cost drivers fall under frequency or severity.

And where people get lost is you get down here in the weeds and you’re way down here in the weeds and you’re like, okay, what’s going on? And we got this. We got duration. We got this. Boom. Boom. Boom. We got claim stuff. We got administrator stuff. We got settlement stuff. And we got all kinds of stuff that we’re trying to track these particular KPIs so that we can move the needle up here…

Clarify Your Ultimate Goal

Where are you focusing on a macro level? Are you first trying to drive down the number of claims you have? Alright. There’s a bunch of stuff that you can do that. But what is your ultimate goal? Is it reducing claims, or is it reducing cost per claim?

Once you make that decision or that determination, then you create a specific action plan to move that needle.

Final Thought

Again, my name is Michael Stack, CEO of AMAXX. Remember, your work today in workers’ compensation can have a dramatic impact on a company’s bottom line, but it will have a dramatic impact on someone’s life. So be great.
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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