TL;DR
- While workers’ comp claims help injured employees navigate medical challenges, employers are negatively impacted in terms of operational disruptions, financial damage, reputational loss, etc.
- Key causes behind such claims include trips, falls, ergonomic strains, inadequate safety training, improper incident reporting, employee health issues, etc.
- Strategies that help reduce workers’ comp claims – holistic safety programs, early intervention, technology, ergonomic support, medical case management, etc.
- Reducing workers’ comp claims offers benefits like low insurance premiums, less downtime, reduced administrative burden, better productivity, etc.
Building a Safer Workplace Through Proactive Compensation Management
In high-risk industries, every workers’ compensation claim carries consequences beyond the immediate financial cost. Supporting injured employees is critical, and frequent claims can undermine workplace safety culture and affect the company’s reputation.
Too many claims can increase insurance premiums and add to administrative workloads. Injuries, in turn, can lower employee morale and disrupt daily operations. If left unchecked, frequent claims may even lead to reputational loss over time.
In this article, we’ll explore the key causes for workplace incidents and proactive strategies to reduce workers’ compensation claims, helping you create a safer and more resilient worksite in the process.
Workers’ Compensation Claims: What Causes Them?
Generally, workers’ compensation claims stem from accidents or injuries caused by common workplace hazards. Dedicated workplace injury prevention plays an integral role in keeping employees safe and reducing claims.
Workplace management should also closely assess the financial impact of these claims to better understand their root causes and redirect efforts where they’re needed most. Here’s what to consider:
- In 2023, there were 2.4 incidents of workplace injuries and ailments per 100 workers. While this figure shows a significant decline since 1972 (10.9 incidents), it still matters.
- Employees who are new to the job are more than twice as likely to get injured and file a compensation claim.
- The average claim cost during 2021-22 was more than $44,000.
Here’s how to reduce workplace accidents by addressing these risks:
- Falls, Slips, and Trips: Uneven surfaces, wet floors, cluttered pathways, insufficient lighting, and missing signage
- Ergonomic Strain or Injuries: Repetitive movements, improperly designed workstations, incorrect lifting techniques
- Accidents Due to Equipment and Machines: Poor maintenance, absence of guardrails, and human errors
- Oversight and Subpar Safety Training: Low awareness among employees about hazards or emergency protocols
- Improper Documentation and Incident Reporting: Risks addressed late and near-misses overlooked
- Workers Who Are New or Inexperienced: Less knowledge about safety regulations
- Health Problems in Employees: Excess exertion, exhaustion, low-quality ergonomics
- Delayed Intervention: Minor injuries tend to aggravate if untreated promptly
Effective Strategies to Reduce Workers’ Comp Claims
For employers, workers’ comp solutions need to be actionable. These are some practical recommendations we offer to businesses that partner with WorkPartners USA:
- Execute a Holistic Safety Program: Conduct safety audits and assess potential hazards regularly so you can reduce the scope of injuries. Put safety checklists in place and outline standard operating procedures.
Make it mandatory for employees to use personal protective equipment consistently and properly.
- Offer Adequate Training: When onboarding new employees, impart structured training aligned with their specific roles or duties. Refresher training, conducted twice a year or after process changes, can also be helpful.
It can be advantageous for senior employees to mentor juniors in real-time and implement safety protocols in conjunction. Support these efforts by organizing drills or simulations to familiarize workers with emergency response behaviors.
- Take Early Intervention Seriously: To reduce workers’ comp claims, make it compulsory to report every injury, no matter how small. Investigate the root causes and document the same.
- Craft a Return-to-Work Program: Decide on the light duties or tasks an injured employee can perform while recovering. Modify their roles if needed.
To ensure gradual and effective reintegration, collaborate with healthcare providers and case managers. These professionals stay in touch with the worker throughout the recovery phase to minimize the disability period, provide a morale boost, and earn their trust.
- Leverage Technology: For effective workers’ comp management, study the data collected on near-misses, incidents, and claim patterns.
To identify risky jobs or workers exhibiting unsafe behaviors in advance, leverage predictive analytics. This will facilitate early intervention. You can also track safety performance metrics and KPIs using digital tools.
- Optimize Medical Case Management: Joining hands with a leading case management company is essential to reduce workers’ comp claims. Besides ensuring care continuity, this move can help you close claims on time. Partner with medical case managers with expertise in your industry, so the patient’s care is continuous and recovery is monitored closely.
To keep up with claim addressal, it is advisable to partner with providers who follow evidence-based treatment and carefully examine medical bills to catch any duplicate or unnecessary charges.
- Promote Ergonomics: Ensure workstations are set up ergonomically and utilize solutions such as adjustable desks and chairs. Encourage workers to take breaks and stretch before resuming tasks.
Introduce professional health and fitness programs to build your workforce’s resilience. Conduct periodic screenings to spot musculoskeletal issues early on.
- Nurture a Safety Culture: Senior managers should visibly champion safe practices and actively work to reduce claims. Additionally, safety performance should be included as a key parameter in their evaluations.
Encourage and recognize proactive safety behaviors, rewarding employees who demonstrate care and diligence. Celebrate milestones like zero-incident periods so that injury prevention becomes an integral part of your company culture.
- Focus on Continuous Improvement: Periodically audit how incidents are handled, review safety practices, and assess the effectiveness of return-to-work programs. Identify safety gaps by gathering feedback directly from frontline workers.
Based on the data collated through audits and surveys, you can tweak policies and training materials. To actually reduce workers’ comp claims, adopting all these strategies is not enough. You must continuously refine them.
Also Read: Telemedicine: Transforming Workers’ Compensation and Reducing Costs
Key Benefits of Reducing Workers’ Comp Claims
Strategic workers’ comp management benefits employers in multiple ways:
- Affordable Insurance Premiums: Fewer filed claims lead to a stronger record with your insurance provider, which helps keep premiums low and results in overall cost savings.
- Less Downtime: Fewer instances of injuries imply reduced absenteeism. Hence, operational interruptions are minimized.
- Better Employee Morale and Productivity: When you reduce workplace accidents by eliminating potential risks, employees feel safe, cared for, and focus better on tasks.
- Improved Reputation: Taking workplace safety seriously gives you a special competitive edge in the industry and helps attract customers, investors, and talent.
- Reduced Administrative Burden: Fewer compensation claims imply less investigation, documentation, and the possibility of oversight.
- Enhanced ROI: The money you save on workers’ comp claims can be channeled to improve safety programs or accelerate business growth.
Also Read: How Can Remote Triage Services Reduce Costs on Workers’ Claims and Healthcare?
Conclusion
As a heavy industry employer, reducing workers’ compensation claims is essential for building a resilient workforce and strengthening overall organizational success. Addressing common hazards and risk areas (such as ergonomic strain, falls, insufficient safety training, and employee health issues) can make a significant difference.
In addition to the strategies discussed above, leveraging dedicated workers’ comp telemedicine is highly recommended, as it provides immediate medical attention even for remote employees.
Reduce Workers’ Comp Claims Efficiently with WorkPartners USA
At WorkPartners, we understand the benefits of minimizing workers’ compensation claims, including reduced downtime, lower premiums, improved ROI, and more. That’s why we offer solutions to prevent injuries and enhance workplace safety, including engagement assessment software and post-offer employment testing.
In the event of an accident, our licensed physicians are available 24/7 to manage the situation end-to-end. We treat most injuries onsite and promptly, minimizing the need for emergency room visits. Beyond supporting workers’ comp management, these services also strengthen regulatory compliance.
Get in touch to learn more. For injury intervention, call us at (800) 359-5020. For other inquiries, you can reach us at (651) 323-8654 or email info@workpartnersusa.com
FAQs
Q1. How can safety training help reduce workers’ comp claims?
Ans. Safety training makes employees aware of potential risks and how they can handle them. This prevents common injuries and leads to fewer claims.
Q2. How can small businesses reduce workers’ compensation claims effectively?
Ans. For small businesses, effective strategies to reduce workers’ compensation claims include creating comprehensive safety programs, providing periodic staff training, promoting ergonomics, and partnering with a medical case management company. Encourage senior managers to take greater accountability and leverage technology to monitor unsafe behaviors, track claim patterns, and identify areas for improvement.
Q3. Should employers implement a return-to-work (RTW) program?
Ans. Yes, crafting and implementing a strategic RTW program is highly recommended to re-integrate recovering employees into the workforce gradually. It can reduce recovery time, absenteeism, and claims, while building employee confidence and productivity.
Q4. What role does workplace ergonomics play in reducing claims?
Ans. Proper ergonomics (such as adjustable workstations and correct lifting techniques) can help prevent strains, common injuries, and general physical fatigue. This, in turn, can reduce the frequency of similar claims.
Q5. How can technology help prevent workplace injuries?
Ans. You can deploy wearables and sensors to monitor employee health, posture, and movements. Using predictive analytics is a great way to identify and address unsafe behaviors and high-risk jobs in advance.
