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Minimize Workers' Comp. Costs by Keeping Employees Healthy: Creating a Healthconscious Culture That Promotes Productivity Recent studies show that a variety of risk factors can contribute to today's rising workers' compensation (WC) claims, including workplace stress and an employee's habits, behaviors and health status, including obesity, cardiovascular disease and diabetes.
Bob Fiorito, Vice President of Business Development at Hub International Robert.Fiorito@ hubinternational.com
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ccording to one Duke University Medical Center Study, the average medical claim cost per 100 employees came to $51,019 for obese workers who filed two times the number of claims and just $7,503 for the nonobese. Additionally, the cost breakdown of WC has changed. Employers used to focus more on the indemnity side, which typically came in at about 60% of the total cost, while only 40% went to actual medical expenses. By contrast, today's WC cost split is 40% or less for indemnity and 60% or more for medical [1]. Now more than ever it is critical for employers to create a healthy and safe work environment in order to minimize the frequency and cost of WC claims. Healthier people are more productive, happier and have lower stress
levels, help cultivate the desired team environment and have lower turnover and absenteeism - all things that bring efficiency to a work environment. What can your business do? While each industry and company faces its own unique risks, there are four major areas that impact WC claims in severity and frequency: The Physical Work Space Start by eliminating, or at least minimizing, physical risk from the workplace. Ensure that physical conditions that could cause injury are engineered out of the operation and that safety is designed and planned as part of new projects. The Work Itself Often times the type of work that is required can pose a risk. Assess the required work, establish work rules, train employees to do it safely and provide the necessary tools and protective equipment to perform the job safely. Emotional Health of the Worker Without the right balance between driving worker productivity and ensuring worker safety, emotional stress and
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Ensure that physical conditions that could cause injury are engineered out of the operation and that safety is designed and planned as part of new projects.
anxiety can surface. Without a doubt, the work culture created by the employer affects worker engagement and stress levels. Create a culture that values health and well being by making sure leaders and supervisors aren't encouraging increased production while ignoring safety. When possible, utilize performance management strategies that engage
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