The Organizational Cost of Human Capital: Bundled vs Unbundled Written By Dr. Claire Muselman What is popular is not always right. What is right is not always popular. I remember this banner draping across the chalkboard of Mrs. Miller’s second-grade class at Nixon Elementary when I was a child. More valid words then could not have permeated my mind and continued to echo. Good thing I went into workers’ compensation. At this point in my career, I feel it is imperative to educate on areas lacking transparency and some of those areas where organizations profit off of human suffering. By shining light into these nuances that currently exist, and I hope to provide light into improving the human capital landscape for employees everywhere. Many organizations today are faced with the same issue: organizational culture. We continue to move out of the pandemic into the new world of what has yet to come, including an increased remote workforce, greater flexibility, and a generational shift starting to take rise. As organizations take these factors into account to make their culture an attractive and sustainable sense of community, it is essential to be aware of outside factors that may inhibit this progress. One of these issues to bring to light is one which stems from claims, and more specifically, workers’ compensation claims. If you are an employer, workers’ compensation claims are inevitable regardless of industry. How these claims are handled and how partnerships are drawn stems from power in the employer’s landscape; however, many are not aware of this, nor are they educated about this front. Employers hold power and should be asking questions! The risk management aspect of claims administration looks to the “group-think” mentality of the insurance agent or brokerage firm, knowing the vital needs of the specific employer based upon the agency's niche or brokerage
Often, products and services relating to the workers’ compensation claims (and total claims landscape) process are lumped together into a “bundled” product. While this can make matters easier to manage or handle from a risk management standpoint, one poor experience with a workers’ compensation claim can change the trajectory of an organization’s culture moving forward. An Employee' experience while going through the workers’ compensation claims process is unique because it tends to stem from a vulnerable space. An unforeseen circumstance arose, and now a void needs to be filled while the body needs time to heal, rest, and rejuvenate. How the claims adjuster interacts with an injured employee can substantially impact how this employee feels towards their organization. It does not stop with the administrator of the claims. It spills over into all parties and partnerships with which this employee will interact throughout the recovery process and the claim's lifecycle. If we look at workers' compensation, how employees feel toward their employer can be impacted in many ways. The relationship builds when the first injury report is filed with the claim’s administrator. Understanding the information needed at the onset and the expression of what is yet to come to alleviate the fear of the unknown with an employee can come from the claims administrator and be reemphasized by the employer. Employers should remain active in this process because what you do not know can and will hurt you longterm. Staying active in the community extends beyond Human Resources or a workers’ compensation coordinator to the leadership levels of employees. During the beginning stages of a workers’ compensation claim, the employee interacts with various medical providers, the possibility of a pharmacy if prescriptions are prescribed, and medical billing on both aspects from physician to pharmacy. Understanding these parties are an extension of you as the employer is the first step to being aware. This experience is just the tipping point.
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