{"id":37,"date":"2017-02-18T20:47:49","date_gmt":"2017-02-18T20:47:49","guid":{"rendered":"https:\/\/hrnetsourcedemo.com\/blog\/?p=37"},"modified":"2017-02-18T20:52:42","modified_gmt":"2017-02-18T20:52:42","slug":"how-to-save-money-on-workers-compensation-part-1","status":"publish","type":"post","link":"https:\/\/hrnetsourcedemo.com\/blog\/2017\/02\/18\/how-to-save-money-on-workers-compensation-part-1\/","title":{"rendered":"How to Save Money on Workers Compensation, part 1"},"content":{"rendered":"<p>I recently attended a presentation entitled \u201c<strong><em>Understanding and Controlling your Ex Mod<\/em><\/strong>\u201d.\u00a0 (No, it wasn\u2019t a self-help session on handling your \u201cex\u201d \ud83d\ude09\u00a0\u00a0\u00a0 The talk was actually a rather technical presentation on Workers Compensation, Experience Rating Plans and Strategies to Impact your X-Mod.<\/p>\n<p>Liza Moran VP of Pinnacle Brokers Insurance Solutions was the speaker and to make sure we were all on the same page, she patiently explained what an \u201cExperience Modification\u201d (X-MOD) is all about.\u00a0\u00a0 (In a nutshell, the idea is related to a merit rating system that provides employers a direct financial incentive to reduce work-related accidents.\u00a0 The higher your x-mod, the higher your cost.)<\/p>\n<p>So, the short answer to the question of how to save money on Workers Comp is:\u00a0 <strong><em>Keep your \u201cExperience Modification\u201d\u00a0\u00a0 (your X-MOD) under control.\u00a0 Make it better than average by keeping it below 100% (the average)<\/em><\/strong>.\u00a0\u00a0\u00a0 OK.\u00a0 But how does one do that? \u00a0These were some of her points:<\/p>\n<ol>\n<li>Watch your unit statistics. Watch your mid-year numbers that can impact your x-mod and future costs.\u00a0 Keep your <u>frequency<\/u> rate low.\u00a0\u00a0 Frequency trumps Severity.\u00a0 Frequency has a greater NEGATIVE impact on your Experience Modification.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"2\">\n<li>Hold regular \u201cclaims reviews\u2019 with your carrier and broker. Strategize with your broker and WC carrier.\u00a0 Draw on their expertise to help you reduce your cost.\u00a0 Avail of any free resources that they provide.<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<ol start=\"3\">\n<li>In your organization, create a positive work environment that is NOT litigious. Create an environment of trust and care \u2013 one that won\u2019t suggest \u201cgo get an attorney!\u201d<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>Perhaps it helps to understand WHY injured workers resort to obtaining an attorney\u2019s services.\u00a0 A Workers\u2019 Compensation Research Institute (WCRI) Study shows that injured workers tend to turn to a lawyer when:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>They believe that they will be fired if they report an injury<\/li>\n<li>They believe their supervisor did not think their injury was legitimate<\/li>\n<li>During the claims process, they experience delay of treatment, or are denied care, or there is poor communication on what is going on<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong><em>Proactive steps to take to make the work environment less litigious<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Develop a company culture that fosters TRUST and where management clearly shows that it values the well-being of its employees.\u00a0 Be proactive in promoting safety practices and communicating procedures when handling injuries.\u00a0 Set up your processes so that the injured is NOT likely to obtain an attorney.\u00a0 In other words, keep your employment relationship in a positive light, stay on top of Worker\u2019s Comp cases and make sure the process is clear and well-understood by supervisors and employees.\u00a0 Having a company culture that cares &#8212; goes a long way.\u00a0 It not only reduces cost; it also improves morale, which in turn improves productivity.<\/p>\n<p>&nbsp;<\/p>\n<p>In my next blog, I will go into more detail on Liza\u2019s specific suggestions:\u00a0 \u201c<strong><em>Six Practical Tips to reduce Workers Compensation Costs\u201d<\/em><\/strong><\/p>\n<p style=\"text-align: center;\">See <a href=\"https:\/\/hrnetsourcedemo.com\/blog\/2017\/02\/18\/how-to-save-money-on-workers-compensation-part-2\/\">part 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I recently attended a presentation entitled \u201cUnderstanding and Controlling your Ex Mod\u201d.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,9],"tags":[6,10],"_links":{"self":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts\/37"}],"collection":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/comments?post=37"}],"version-history":[{"count":2,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts\/37\/revisions"}],"predecessor-version":[{"id":46,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/posts\/37\/revisions\/46"}],"wp:attachment":[{"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/media?parent=37"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/categories?post=37"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hrnetsourcedemo.com\/blog\/wp-json\/wp\/v2\/tags?post=37"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}