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How to Reduce the Cost of Workers' Compensation

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Employers can take several measures to ensure that they keep the cost of workers' compensation affordable. This article discusses some of the ways through which you can lower the costs of this insurance cover.

Set Up Safety Programmes

The cost of providing workers' compensation after job-related accidents usually rises as the number of injured or ill workers increases. It is therefore logical that the first step to keep those costs affordable is to prevent the injuries and illnesses. Insurance companies can be helpful in this regard because they usually advise their clients about the different steps that they can take to increase employee safety. For example, you can establish a system to reward employees who bring to your attention a practical way to avert a hazard that hadn't been captured in your health and safety manual. Accident rates will go down when these safety programmes are implemented.

Ease Employees' Return to Work

Another way to keep workers' compensation costs affordable is by designing programmes that enable recuperating workers to get back to work quickly. Such schemes should entail assigning the employee lighter tasks that have been approved by the medical team that has been treating him or her. Employees are likely to appreciate the effort that you invest in getting them to back to work in a quick and convenient manner. The costs of compensating those employees for lost income may also go down due to this speedy return to some form of productive engagement.

Set Up Effective Communication

Positive communication should be maintained with all employees about workers' compensation. For instance, frequent reminders should be provided about the steps that an employee should take when he or she is injured while at work. You should also maintain contact with any injured employee throughout the treatment process so that you can ensure adequate care is being given to that employee. Such an employee is likely to do everything possible to return to work quickly since he or she will have a sense of belonging to the organisation that cared so much during the recovery period.

Prompt Treatment is Key

Insurers usually work with employers to select health providers that should be approached in case an employee is injured. You should make sure that injured employees are quickly taken to the approved medical facilities so that they can receive prompt treatment. This immediate medical care will limit the potential risks of any injuries that they may have suffered. The employee will therefore be likely to recover sooner and get back to work.

You will notice a gradual reduction in the cost of providing workers' compensation if you implement the suggestions above in your company. Keep tweaking those measures until injury rates dwindle to a level that is manageable.