Most employers will admit they could be better at lowering their workers’ compensation costs. While the average cost of a single work comp claim these days is more than $42,000, the indirect costs of even one workplace safety incident is much higher. For every dollar spent on direct workers’ compensation costs, approximately $2.12 is spent on indirect costs such as lost wages and time off work along with the disruptions that typically follow an on-the-job injury.
So, how can employers bring these costs down? Simple: workplace safety prevention is key to cutting injury costs.
One study showed that every dollar invested in workplace safety and injury prevention programs generates a $4.41 return on that investment. What are the elements of a good cost control program for workers’ compensation and why are wellness programs so effective at reducing injury, death, OSHA filings, and workers’ compensation premiums?
Let’s find out.
There are several elements of a good workplace safety program:
- Safety training that begins with employee onboarding
- Property and equipment maintenance
- Establishment and enforcement of workplace safety rules
- Personal protective equipment
- Injury response protocols to respond fast and avoid the ER when possible
We know that the key to reducing workplace injuries is to prevent them before they occur. Several studies highlight that employers can save between $2 and $6 for every dollar they invest in preventing workplace injuries. In other words, the least expensive accident is the one that never happens.
A good workplace safety program has this prevention-centric strategy at the heart of their effort. For example, safety training that begins during the employee’s first week but continues throughout their tenure can serve to build accountability that keeping safe is everyone’s responsibility. Equipment maintenance usually has the goal of extending the life of the machine or tool to avoid malfunctions. Protective equipment stops the accident from damaging the vulnerable worker. These are all proactive strategies designed to prevent workplace injuries from occurring.
However, these widely-accepted workplace safety initiatives often don’t include an emphasis on employee wellness. These programs can center on ergonomics to prevent repetition injuries, general health to prevent chronic disease, and more. The Centers for Disease Control and Prevention (CDC) define these health and wellness programs as “designed to encourage the health and safety of all employees.”
What kind of wellness programs could your company consider to increase workplace safety and cut the high costs of workers’ compensation and occupational health injuries?
- Lower back and neck pain and injury
- Musculoskeletal disorders such as carpal tunnel, strained muscles, or rotator cuff tears
- Cumulative trauma disorders from repetitive motion and overuse
- Neck strain
- Wrist or hand tendonitis
- Tennis elbow or shoulder tendonitis
- Carpal tunnel syndrome
- Lower back pain
- Hernias
- Sprains and muscle tears
- Swelling and stiffness
- The personal protective equipment (PPE) the employee uses
- How fast they’re called upon to complete a task
- Their bodily movements when doing the job
- Task repetition
- Lifting or pushing heavy items repeatedly
- Standing or sitting in one place for a long period of time
- Repeated use of excessive force
- Postures that are uncomfortable
- Bodily strain
- Environmental factors such as the temperature of the workspace, the number of breaks, etc.
- Increased productivity from the individual worker because they are more comfortable
- Higher quality work from employees who are less frustrated by the physical conditions of the job
- Improved employee engagement because they know you have their back and are trying to protect their safety
- A better safety culture where employees have situational awareness into wellness practices
August 19, 2022
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