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How To Reduce Your Worker's Compensation Costs

For small-or medium-sized businesses, worker's compensation can be extremely costly. You invest a lot of the time, money and resources into claims management to ensure your business stays compliant and your workers are protected. With your limited resources, there are steps you can take to minimize your risks and reduce your worker’s compensation costs. 

  1. Early return to work: Offer part time or alternative work options to get your employee back to work as soon as possible. The longer your worker is absent, the longer the insurance company has to pay his or her benefits which can increase the cost of your premiums.
  2. Education: Ensure your employees know how to operate all equipment and practice safe working habits around all machinery. Conduct random checks to keep employees fresh on operational protocol and establish an open-door policy for questions and concerns. 
  3. Injury response: In the case of an accident, make sure you and your employees are aware of the company procedures to follow when responding to an injury. Injured workers should know where to receive medical care, procedures for referral to specialists, transitional duty requirements, how to receive pay and other important details regarding their case. 
  4. Classify job descriptions correctly: While this appears trivial, classification of job titles and descriptions can impact your workers’ comp premiums. Some classifications carry more risk, which will increase your premiums. Make sure you have the most up-to-date classification code book in your state and research the best ways to classify your employees' title.
  5. Hire with safety in mind: As you interview candidates for a position, try to eliminate those who may pose a safety risk. GMS can help with recruiting and training workers who best fit into your company’s culture and who will be able to perform in-line with your safety guidelines. 
  6. Conduct safety audits: The workplace safety experts at GMS can help you perform safety audits, create safety manuals and rule books to foster an environment where safety is always a top priority. 

Many employers look at workers’ compensation as an uncontrollable expense. But with the right mindset – and some help from a PEO like GMS – you can stop looking at it this way and start taking a more proactive approach managing your workers’ comp costs.

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