There are two main perspectives when trying to reduce your workers’ compensation costs and we have explained both of them here.
Short Term Approach
If you are not too excited about what you are currently paying for worker’s compensation, the best place to start is connecting with a broker who can help you analyze your current situation.
The first step is to gather all the data. You’ll need what you are paying per $100 of payroll and what your lost history looks like for the last three years. Once you have this together your broker can then analyze all the data and take it to a carrier.
Shopping your rates with current workers’ compensation carriers may yield a better setup for you but alternative options like working with a PEO may be an even better option. Sometimes a PEO can have a special program that makes more sense for you than where you are today. If you are currently with a PEO, then finding a more affordable one would be the task at hand.
Long Term Approach
From a long term perspective it is all about mitigating your risk. The best way to do this is by putting safety programs in place to inform and direct your employees for best practices while working.
If a PEO is the right fit for your company, they offer many ideas and solutions to help you put these efforts in place. Becoming a client of a PEO means it is in their best interest to help you keep your employees safe. For example, if you are in manufacturing they can help you with a lock out tag out program to further mitigate safety risk in the workplace.Reducing the number of accidents you have long term will reduce your costs long term.