Decreasing Workers Compensation Costs – Effective Ways to Manage and Mitigate Risk23 March 2018
Although for some employers, the complete eradication of workplace injury may be an unattainable goal, the best approach to reducing the cost of workers compensation is to value safety and risk management as an absolute priority. This article will examine the best ways to mitigate risk and reduce the likelihood of mass compensation claims being successful against your company.
Creating and promoting a safe workplace, and encouraging a culture which supports worker safety, is central to reducing the costs of workers compensation. We see a high volume of compensation claims coming from industries involving manufacturing, mining and transport due to the high risk nature which is associated with the running of such businesses.
Furthermore, high cost compensation claims, such as those resulting in the death or permanent injury/disability of a worker, occur most frequently in those same industries. This makes a culture which supports and prioritises safety even more important for businesses that fall in these categories.
Businesses can seek to prioritise safety in the following ways:
- Encourage active worker involvement in your business approach to safety, with open dialogue between those individuals in positions of authority and workers in regards to reporting hazards and proper consideration of worker concern. It is imperative that companies are open to engaging with their workers and encouraging communication where risks to health and safety are concerned.
- Understand the requirements of each separate role and the duties engaged in by your workers and record the operations of each role. Open communication is again important here, and employers who fully understand the needs of their workers will reap the rewards of a happy, safe, and productive workforce. This is also vitally important, as companies cannot prevent unknown risks.
- Mandate safety equipment and ensure that safety policy is implemented across the board. This may seem obvious, but serious injuries occur far too frequently due to obvious safety measures being averted, such as protective guards being removed from dangerous machinery.
- Learn from any past incidents, even those which don’t result in worker injury. Working with experts in occupational health and safety is invaluable here for risk mitigation.
Hentys Lawyers are experts in risk assessment, strategies for prevention, and all areas concerning occupational health and safety.
We have decades of experience in handling high-risk industries and developing policies and means of implementation to ensure the highest standard of approach to workers compensation and safety.
Please contact us immediately should you have any questions or concerns.