How Safety Managers Can Reduce Workers’ Compensation Costs and Protect Their Fleet

Safety managers play a pivotal role in not only protecting the health and well-being of a company’s employees and operations, but also in reducing costs resulting from workplace injuries and fleet-related accidents.

Workers’ compensation claims, those made against a company’s workers’ compensation insurance due to a workplace injury, can add up quickly and put a strain on a company’s finances. According to the National Safety Council, the average workers’ compensation claim was $41,353 last year. (1) It also estimates that workplace injury costs in the US can total as much as $161.5 billion in one year. (2)

With rising insurance costs and an uncertain economic climate, the pressure to find cost savings is greater than ever for safety managers. And while accidents happen and are often unavoidable, there are steps to take to minimize risk, protect workers, and safeguard your business’s bottom line.

Incorporate Safety into Hiring Practices

The safety of your team and business begins in the interview process – candidates who exhibit a commitment to safety in their work history are more likely to contribute to the overall safety of your workforce. Even if you don’t have the opportunity to participate in the hiring process as a safety manager, it is important to provide questions and guidance for hiring managers to ensure new hires are going to prioritize safety in the workplace. According to data from the US Bureau of Labor Statistics, 40% of all workplace injuries involve people who have been at their jobs for less than a year, and new workers are five times more likely to be injured on the job than their more experienced colleagues. What’s more, one in eight injuries actually happen on an employee’s first day. (3) Simply put – hiring practices matter!

Create a Comprehensive Safety Training Program

When a new employee is first hired, it is imperative that safety training is a major part of their onboarding process. But safety training shouldn’t end there – it should be an ongoing process with frequent opportunities to increase your team’s capacity to protect their own safety and the safety of their colleagues, reduce accidents and injuries, and mitigate risks. Your training schedule should include quarterly updates and refresher courses, as well as frequent updates to your team that provide industry insights and best practices as well as analyze real-world instances of unsafe scenarios and how safety could be improved in each.

Cultivate a Culture of Safety

To truly create a safe working environment, a culture of safety must be more than a platitude – it must be infused in every aspect of workplace culture. Safety managers must lead by example, modeling best practices at all times. But they can’t do it alone. Leadership at every level of a company should also model best practices, showing a consistent commitment to their safety and the safety of their teams. And while punitive actions for safety violations are a necessity, a culture of safety should also be supported by recognition programs, where employees are praised and rewarded for prioritizing safety best practices.

Employee involvement is also imperative for a culture of safety – no one has a greater impact on workplace safety than those who see it and practice it daily. Encourage your employees to have an active role in your safety culture by hosting safety meetings to share updates and solicit feedback and suggestions. You may also want to offer your employees the opportunity to participate in a safety committee where they can share concerns and be involved in shaping safety policy. You should also consider options for employees to report safety issues anonymously to allay any concerns over retaliation.

In addition to cost savings, companies who prioritize a safety culture also reap the benefits of increased employee productivity and engagement, as well as reduced turnover.

Implement a Rapid Response Protocol for Incidents

In the event of an accident, every moment counts when it comes to protecting your employees, operations, and business. Your safety protocols should include guidance on procedures to follow if and when an accident occurs, including:

A plan for communicating information on the incident – who needs to know, a hierarchy of outreach, and the best means of communicating information

A designated onsite point of contact for medical treatment or contacting emergency medical care providers

A protocol for reporting non-emergency incidents

A thorough list of information (photos, witness statements, and incident details) to be collected

Track, Monitor, and Analyze Safety Data

One of the best ways to ensure your team’s safety is to collect data on the systems and behaviors that contribute to it. Regularly survey your team on how they implement safety programs and solicit feedback for improvements – even if it must be anonymous to ensure candid, accurate answers. Utilize technology to enhance your efforts. Tools like cameras or telematics – technology used to monitor driving behavior that is usually installed on a vehicle’s diagnostic port, or accessed on a smartphone that automatically tracks data like a driver’s speed, braking habits, acceleration, and distance – can provide a wealth of information to inform safety related decisions at your company. Electronic logging devices can automatically capture driving hours to remain compliant with Hours-of-Service regulations and limit the risks posed by driver fatigue. In the event of an accident or injury, record as much information as possible so your safety team can thoroughly evaluate it and make upgrades to safety programs. Create spreadsheets and a dashboard to synthesize safety data to identify patterns and particular areas of concern and address problems through corrective action.

Regularly Inspect and Audit Safety Programs

Inspections and audits can help showcase problems and increased risks before they can evolve into dangerous situations and costly accidents. Your inspections should include preventive maintenance, equipment checks, walk-throughs, and ride-alongs.

Develop Return-to-Work Programs

Return-to-work programs can help create a meaningful path to welcome your employee back into your operations if they are healthy enough to do so, reducing workers’ compensation claim durations and costs. This program should include regular communication with the employee, coordination with their healthcare providers on their ability to return to work and appropriate duties, and a plan for increasing duties as the employee is ready.

Collaborate with Your Insurance and Risk Management Partners

Your insurance policy provider and risk management partners are experts at empowering you to keep your employees safe, reduce costs, and mitigate liability. They can provide additional training resources for your team as well as share industry best practices for safety improvements. They can also conduct reviews of your claim history, loss trends, and premium adjustments to inform your safety protocol decision making.

Safety managers are uniquely positioned to have a significant, lasting impact on employee safety and company finances. The most cost-effective workers’ compensation claim is the one that never happens. But all the protocols and programs in the world can’t prevent every accident.

That’s why having an expert workers’ compensation insurance partner is crucial. At SWZ, we are masters at solving complex risk transfer problems for businesses of all sizes. That is why we are consistently the leading choice for our clients when it comes to placing insurance for their companies. If we can help you protect your team and your company’s financial future, please contact us today.