Keep Workers' Compensation Claims Down and Your Workforce Happy

Companies estimate that only 50% of employees on disability for six months, and only 5% of those off longer than 12 months, return to work.* Furthering the issue, soft costs of training and salary for new or temporary employees can be as much as double to triple the cost of an original workers' compensation claim [1]. When you consider the costs for temp and new hires combined with recent studies revealing that workers who return to work soon after an injury recover more rapidly and completely, it clearly benefits both sides to get an employee back to work quickly.

So, how can you get your employees back to work?

Here are 3 best practices for minimizing costs and keeping employees on the job:

  1. Create a formal return to work program: Companies who are serious about controlling workers' compensation costs will have a formal return to work (RTW) program tailored to their specific business culture and risks. This program starts by designating an employee, such as an HR executive, who is responsible for championing claims. Larger companies will most likely have someone completely dedicated to workers' compensation claims. This RTW "manager" will oversee the program, which should include the following elements: a company mission statement, a flow of action to be taken from injury to return to work, an emergency plan, a communication plan and a transitional employment plan. The RTW program should be communicated upfront to all employees during on-boarding and should be included in the workplace policy manual, similar to a drug or alcohol policy.
  2. Communication is critical to a successful return to work program: The designated RTW manager will establish initial contact with the injured employee a day or two post-accident to let them know that the company is working with them to ensure a complete recovery. The RTW manager will also engage a claims advocate from your insurance broker who interacts with the physician, the insurance company and works hand-in-hand with your RTW manager to create transparency. Communication among all parties is critical to eliminating extra costs and streamlining claims. For example, regularly scheduled phone calls should be established between the physician and the responsible in-house employee so that expected return to work dates and modified work levels are clear. This will eliminate the potential for employees to be off work for longer than they should and keep employer costs to a minimum.
  3. Write detailed job descriptions for each function: Maintaining detailed descriptions of each job function will set the bar for an employee returning to work with new restrictions after an injury. If the employee's original job called for lifting of 40 to 50 pounds and their modified abilities only allow them to lift 10 pounds, an employer can use existing job descriptions to either shift workers around or give the modified employee another task. Keeping an updated list of "rainy day" projects can provide other avenues of work for those returning on modified duty.

Studies have shown that after implementing a RTW program, many organizations have experienced reductions between 25% and 50% in both compensation payments and lost days due to workplace injuries. In fact, one study reported a savings formula of 54% of current workers' compensation costs, indicating that the return on investment was $9 for every $1 spent by the organization in implementing a RTW program.*

Contact a worker's compensation expert at HUB to find out what your organization can do to minimize claims and build or perfect your RTW program.

 [1] American Society of Safety Engineers, Business of Safety, Return-to-Work Programs white paper.