Reducing Workers Compensation Costs January 1st, 2008
Workers’ Compensation Claims are a costly business expense, and have risen 27 percent in the last four years, according to the U.S. Department of Labor. Dealing with workers’ comp claims and reducing their occurrence and their cost can help cut business expenses and strengthen the bottom line.
Businesses spend an average of $26.86 per hour for each employee on salary, benefit expenses such as health insurance, vacation time and workers’ compensation benefits, according to the Labor Department’s 2006 Bureau of Labor Statistics report. Of an employee’s hourly compensation, about 1.8 percent (.14 cents) goes toward workers’ compensation. Those costs vary depending on an employee’s classification, among other factors.
Workers’ compensation costs can be determined by: Job classification, pre-claims programs, level of insurance offered, performance of regular safety checks, reinforcement of safe working behavior, emphasis on safety procedures, instruction manuals that detail safety procedures, employee education and training, employer’s safety record, elimination of hazards that cause injuries and return-to-work programs, among other factors.
AllBusiness.com recommends that businesses may change to help reduce workers’ comp claims overall:
Career Corner Article Series
Career Corner Articles Home
Management Matters Article Series
Management Matters Articles Home
Industry Trend Article Series
Industry Trend Articles Home