Workers’ Comp Savings

Protection Through Prevention

Every organization needs a safety and workers’ compensation program. For some organizations, the cost of workers’ comp premiums can significantly impact the bottom-line. For those high-risk businesses, it’s critical that organizations prioritize ways to achieve workers’ comp savings in order to protect the viability of their overall business.

The easiest way to reduce workers’ comp costs is to prioritize safety. Here are 3 tips to help you do so:

1. Foster a Safety-Based Culture

An organization’s culture is critical to its overall success. And when organizations prioritize employee safety, their culture blooms. According to Chris Powell, CEO of Talmetrix and 25+ year HR veteran, companies that emphasize the importance of workplace safety increases employee engagement which is a leading indicator of the success of an organization’s safety program.

“Employee engagement has a complementary impact in the workplace: engagement translates to better quality of life and health for employees and customers, just as it cuts down on the number of employee safety incidents.” – Chris Powell, CEO of Talmetrix

How can you improve your company culture? Emphasize the organization’s core values, especially those that highlight the criticality of safety. Form a safety committee where employees from different parts of the organization come together to discuss opportunities for safety improvement across the entire organization. Finally, make the required training memorable. Use high-energy content and storytelling to keep employees engaged and interested throughout training sessions.

Any activity that empowers employees to impact the company will result in increased employee engagement and accountability, and thus, a safer company.

2. Implement a Repeatable Process

Well outlined safety policies are important, but the safest companies in the world also implement detailed and repeatable processes to help their employees stay safe. While many organizations rely on training and site supervision to ensure employee safety, the best organizations provide their employees with additional tools to help them easily report incidents and hazards to promote accountability and proactive safety management.

These tools oftentimes include digital safety software apps that improve the likelihood of employee engagement with the overall safety program.

Regardless of what tools you choose to provide your employees, at a minimum, you should clearly outline:

  • The key activities employees must perform before beginning the work
  • Critical safety success factors when performing the work
  • Specific actions to take when accidents occur

3. Focus on Incident Prevention

Given advances in technology and reporting, organizations can now focus on ways to prevent incidents before they ever happen.

Through the use of data from Leading Indicators, companies can understand the circumstances that cause incidents to happen, before they actually create a problem, enabling them to take action to reduce both incident frequency and severity.

Another way for organizations to quickly reduce incident frequency is through hazard recognition and prevention programs. The safest companies in the world are diligent in their efforts to find and eliminate workplace hazards.

At Alcoa, after only one year of enacting Safety as their number one priority, employees began to notice that they couldn’t “turn off” their desire to identify and make others aware of unsafe conditions, even outside of work. Their employees would often stop at a construction site or raise an issue at a retail store they were visiting to help keep others safe. As an employer, that’s pretty satisfying – safety became such a part of who they were as individuals that safety became a core component of the company culture and operation.

The Time to Start Is Now

The best way to experience workers’ comp savings program is prevention. The simplest and smallest changes across your company can add up to a safer workplace. If you implement any of these tips above, you will surely see reductions in your workers’ comp costs year over year.

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