Reducing Workers’ Comp Costs with Workplace Culture

According to a study conducted by the Workers Compensation Research Institute, workers’ compensation costs per claim in Florida are increasing approximately 3% per year. That alone is a compelling reason why every business needs to have a comprehensive Florida Workers Compensation insurance package. It’s also a compelling reason to take steps within your organization to reduce workers’ comp costs. Therefore, reducing workers’ comp costs with workplace culture changes is possible.

Instill a Culture of Health and Safety

Numerous studies have concluded that workplace safety and health initiatives can reduce workers’ compensation costs. One study estimates that employers can cut those costs as much as 30% or more. Besides reducing accidents and health claims, workplace health and well-being programs boost morale and productivity. Employees who feel valued are more loyal, work harder, take pride in their work, feel camaraderie with coworkers, and are less likely to abuse a company’s sick-leave policy.

Components of a Safety Program

If your business doesn’t yet have a workplace safety program and wants to start one, here are some tips.

  • Create a concise, easy to understand policy that spells out safety expectations.
  • Implement a training program to show employees how to reduce or avoid on the job hazards.
  • Elect a safety committee comprising members of management as well as employees from all departments.
  • Implement accountability policies spelling out consequences for unsafe practices.
  • Implement incentive and recognition policies to reward safe practices.

Ways to Encourage Wellness

It’s easier for employers to create a culture of safe workplace practice than it is to get employees to pursue healthier personal habits (as that requires their participation even when they’re not on the job.) There are steps you can take to encourage employees to take care of their health. They’ll appreciate that you care enough to offer programs like health education fairs and screenings (many hospitals operate outreach programs and can help you plan an in-house event.) You can also consider offering a corporate gym membership or fun and friendly “weight-loss challenge.” Additionally, vowing to be flexible with employees to help them achieve a healthy work-life balance is a less formal but equally effective way to keep your employees happy (and healthy).

It’s wise for businesses to demonstrate they value employees by implementing health and safety programs. It’s also wise to prepare for the inevitability of costly workers’ compensation claims. Contact Newman Crane & Associates Insurance at (407) 859-3691. We’ll create a custom insurance plan tailored specifically for your business.

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