Whether you’re dealing with workers’ compensation costs or unemployment claims, risk management can be a struggle for any business owner to manage. Effectively mitigating risks, supervising safety protocols, and managing legal liabilities can take time and focus away from business growth and profitability. Fortunately, a professional employer organization (PEO) can help manage these processes and improve your business’s overall safety and risk management.
What is Risk Management?
Risk management entails identifying and assessing potential risks that could negatively impact a company's operations, reputation, or financial stability. It consists of evaluating workplace hazards and implementing measures to mitigate or avoid them.
According to the Occupational Safety and Health Administration (OSHA), millions of workers in the United States experience serious job-related injuries annually. These injuries lead to lost productivity, workers' compensation claims, and higher insurance rates. Risk management proactively prevents such accidents by identifying hazards and implementing strategies that will safeguard employees.
Instituting Loss Prevention Strategies
One way that a PEO can improve your risk management is by instituting loss prevention strategies. These strategies can reduce workers’ compensation claims and improve overall safety. PEOs can help you develop safety programs, write safety manuals and guidelines, implement a drug testing process, or perform workplace inspections. Loss prevention strategies can also include having workers’ compensation insurance, claims representation, and claim investigations.
Cost containment strategies
While you can take steps to prevent accidents and terminations, they still happen. In the event a claim is filed, a PEO can handle the following to help you reduce associated costs:
- Reduce liability for unemployment taxes
- Help you write detailed handbooks and job descriptions
- Consult with you on the employee discipline and termination process
- Ensure you stay compliant with unemployment laws and regulations
- Provide representation at claims hearings
Save time and money
For a small business, workers’ compensation costs can vary from less than $100 to thousands of dollars a year per employee. Workers’ compensation and unemployment claims can’t always be predicted, but you can still reduce the amount of time and money that you spend on legal protection. By implementing safety programs, training, and protocols, you can reduce employee risk. When employees feel safer at their workplace, they are more productive, focused, and have higher morale, all of which can improve your business operations and bottom line.
GMS and Risk Management
If you’re searching for ways to improve your risk management and reduce workers’ compensation claims, a PEO like Group Management Services (GMS) could be what you’re looking for. Our team of risk experts are able to develop safety programs and policies to fit your specific industry and workplace. They can also perform worksite inspections, identify potential hazards or accident-prone areas in your workplace, and provide specific, cost-effective solutions.