Successful Workers Compensation Safety Equals Increased Productivity

As I talk to owners and managers of companies in virtually all industry sectors there are two consistent themes that become crystal clear. First, companies are under enormous strain to compete and grow profitably in the face of rising operational costs. The cost of energy in all forms has skyrocketed and has touched virtually every aspect of their operations. While TQM, Six Sigma and Lean Thinking concepts are valuable processes to improve operational efficiency these new financial challenges have placed an even greater burden on managers to find ways to improve operational efficiency.

Second, more and more organizations are taking a fresh look at the concept of productivity throughout their organization. If this were only a matter of investing in new technology this challenge would be relatively straightforward, although not always easy. But what makes this productivity evaluation so difficult is that it involves PEOPLE, and this imposes strain and complexities on the employment relationship. As I talk to owners and managers I get a real sense that they are struggling with this issue every day and it often keeps them up at night. As one manager said to me recently - “It is more than just displaying leadership and expecting employees to follow your lead. I must convince all of my employees that we have a common interest in operational efficiency, open up channels of communication, and earn their trust that we will truly listen to them and make the right decisions.”

While employee safety is just one component of a successful strategy here, there is no longer any doubt that it impacts these issues every day. The equation is simple:

Reduced workers compensation claims equals increased productivity

Every day that an injured employee is off work has two devastating effects on the organization. First is the impact on the bottom line. For every $1 of insured workers compensation claim costs the organization incurs between $2 and $10 of uninsured costs. In fact, CompEraser’s clients are averaging $3.80 of indirect, uninsured costs. These uninsured costs result primarily from the reduced productivity of the injured worker and fellow employees. Second, a workers compensation injury is a test of the employment relationship. Not only has a valued employee gotten hurt. It is a breakdown in the organization’s efforts to prevent injuries. Unless the organization has Prompt Injury Response and Temporary Duty Programs which are embraced by all employees and implemented consistently with compassion the trust that management is seeking to earn will quickly evaporate.

Safety is no longer a standalone “silo” within the organization. It truly must be an integral part of its effort to compete profitably in the world marketplace. It touches the hearts and minds of your employees every day. If successful your organizational productivity will increase. If unsuccessful the opposite will occur.

I invite you to take five minutes to estimate your TOTAL COST of worker injuries using OSHA estimates in the privacy of your office. It is on-line and available 24-7. To find out more go to www.comperaser.com. These resources also include injury prevention, OSHA compliance, safety training, prompt injury response, workers compensation disability management, plus more. These resources are available 24/7 and used irrespective of which workers compensation carrier you select. Its patent-pending technology also provides unique financial reports for monitoring the effectiveness of your safety and health program on an on-going basis.