Workers’ compensation is an essential part of any business—no matter how many employees you have. If one of your workers is injured on the job, workers’ compensation insurance provides monetary reimbursement for medical expenses, rehabilitation costs, and lost wages while they’re recovering. Workers’ comp also helps prevent you as a business owner from having to pay out of pocket if an employee gets hurt on the job.
While workers’ compensation is crucial for your business, it can also be expensive. This is particularly true for high-turnover rate industries like construction, manufacturing, trade, transportation, and hospitality. Let’s take a look at the challenges of managing workers’ comp costs in high-turnover industries, strategies for reducing workers’ comp expenses, and the role of PEOs in cost management for those sectors.
Challenges of Managing Workers’ Comp Costs in High-Turnover Sectors
Workers’ compensation costs can add up—especially in high-turnover sectors. As a business owner or manager, you’re likely faced with some challenges when it comes to managing those costs.
Frequently hiring new employees means it can be difficult to keep everyone up-to-date on safety training and procedures. Consistent employee training creates the foundation for a safe work environment so that your team members feel comfortable to dive into their new role.
Employees become more familiar with their job and safety procedures as time passes, but when the turnover rate is high there often isn’t enough time for workers to really establish safety awareness. This lack of experience can be the catalyst for accidents happening in the workplace.
Strategies for Reducing Workers’ Comp Expenses
While there are challenges to managing workers’ comp costs, there are also strategies businesses can put in place to help lower those expenses.
Implement safety training programs
Employee training programs build a strong foundation for safety practices and procedures in the workplace. It’s important not only to implement safety programs when new employees are hired, but also throughout each existing worker’s time at the company. Training programs are crucial for keeping protocol fresh in your employees’ minds, ultimately helping prevent workplace injuries from happening in the first place.
Conduct safety audits regularly
Safety audits are a great way to see where employees are thriving in terms of safety protocol and where they could use a little more support. When you have a clear picture of how your business is doing, you have a better understanding of what steps to take to help get everyone up to speed.
Establish return-to-work programs
Return-to-work programs are essential for helping keep workers’ compensation costs at a minimum. When an employee is injured, a return-to-work program establishes a plan to ease them back into their role as the near the end of their recovery process. These programs help your workers feel valued and excited about getting back into the swing of things after they heal.
Role of PEOs in Cost Management for High-Turnover Industries
Professional employer organizations (PEOs) are co-employers that step in to handle the administrative tasks for businesses. When it comes to cost management for high-turnover organizations, PEOs offer HR solutions for saving money on workers’ compensation.
PEOs start by offering comprehensive onboarding processes to all new employees—which is especially important in high-turnover industries. This includes safety training programs that help get your workers on the right track toward creating a safe work environment. They also implement safety training programs for existing employees as refresher training or to teach new protocol.
PEOs also offer safety audits as a way to gain a better understanding of what your employees need in terms of safety training. Using the data from these audits, PEOs can create and implement training programs that meet the exact needs of your business.
Reintegrating employees back into the workforce is essential after they’ve healed from an injury, and it’s imperative for employee retention. PEOs establish strong return-to-work programs that comply with Occupational Safety and Health Administration (OSHA) standards. PEOs can help employers create modified roles that allow injured employees to ease back into their job, ultimately helping them get back to work sooner.
Achieving Cost Savings in Challenging Environments
High-turnover industries can be costly when it comes to workers’ compensation. Partnering with a PEO can help you manage those costs by implementing safety training programs, conducting safety audits, and establishing strong return-to-work programs. If you’re ready to achieve cost savings in a high-turnover environment, reach out to OCMI workers’ comp today!
