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Q: How can an employer reduce costs associated with worker’s compensation?

A. Work-related injuries cost U.S. employers about $1 billion a week in payments to injured workers and their medical care providers. Workers’ compensation is the second-highest business expense after payroll. The following three suggestions will help companies protect themselves and ensure a safe work environment for their employees.

  1. Make hiring the right employees a top priority- To often we are so anxious to fill a position that we rely on first impressions. A bad hire can cost much more then the annual salary and cost of advertising. Spend as much time on assessment and reference checking or more then you do on the interview itself. Pre-employment drug testing and background testing is well worth the expense. If privacy issues are a concern, these functions can be easily outsourced.
  2. Develop Safety Awareness Programs – Including employees in safety meetings, encouraging questions and offering incentives for safe work areas and an accident free month goes a long way in reducing accidents.
  3. Adopt and Enforce Safety Procedures- The Occupational Safety and Health Administration (OSHA) mandates that employers follow certain safety procedures, but businesses should develop their own procedures, communicate them to the workforce, provide consistent training, and enforce the procedures implemented. These few steps alone can help reduce costs significantly over time.

Our Mission

The mission of IES is to be a resource to our clients and employees, treating both with respect, and to ensure they are confident in our ability to provide accurate and timely payroll, invoicing, and benefits administration as the employer of record.

Sara Jensen