Maximize Your Profits: 5 Ways to Lower Workers’ Compensation Costs

Maximize Your Profits: 5 Ways to Lower Workers’ Compensation Costs

Workers’ compensation insurance is a hefty cost for most businesses, and small businesses especially can feel the pinch. In an economy where all businesses are encouraged to raise productivity and decrease costs, how can you keep your workforce producing, but also safe? And spend less on top of it?

You can minimize the costs associated with workers’ compensation insurance.

Workers’ compensation insurance works in a manner somewhat similar to the types of insurance your purchase for your personal life. When you buy car insurance and you get into an accident, your insurance premium rises. With workers’ compensation, costs can skyrocket when you have a workplace injury (or injuries). As a result, the #1 way to keep your workers’ compensation cost down is to reduce the injuries that occur in your workplace. Here are five ways you can lower your workers’ compensation costs:

  1. Identify workplace safety issues. If you believe you have a workplace safety problem, assign a team (or bring in professionals) to assess your workplace for potential safety hazards. Be thorough, and don’t dismiss any hazards that you might consider “minor.”
  2. Institute a structured safety training plan. Once you’ve identified safety issues in your workplace, design and implement a structured safety improvement plan. Fix or resolve any issues internally that may lead to injury, and provide structured safety training (online or in a classroom) for employees who are at a risk of workplace injuries.
  3. Work with a staffing agency. When you partner with a staffing agency, all employees who are brought in through the agency remain on the agency’s payroll – including all workers’ compensation costs. Working with a staffing agency can minimize your risk and costs, but provide you with a flexible workforce.
  4. Reward employees for adhering to safe work practices. Once you’ve identified safety issues and implemented a safety training program, reward employees who exhibit safe practices on the job. It’s a basic idea, but when employees see a potential for reward (monetary, with bonus breaks or vacation days, or even through a recognition program that recognizes employees who are the “safest”), they are much more likely to stick to the plan.
  5. Implement an employee wellness program. Employees who are healthy are less likely to succumb to workplace injuries. Employee wellness programs can be a low-cost way to help employees live healthier lives (and also be more engaged in their jobs).

An experienced staffing agency can work with you to identify safety hazards, design and implement a workplace safety program, and can also take additional steps to keep your workplace safer – and your costs lower. To learn more about how we can help you decrease your costs and increase productivity, contact Peoplelink Staffing today.

 

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