Feel like you understand what TRIR, DART, EMOD, NCCI codes, LTIFR or indemnity means? If you are lost and thinking of turning the page, I understand. The world of workers’ compensation can be a tough topic. There are a lot of numbers, codes and insurance terms that can make your head spin. It represents a lot of pain. Yes, pain for the employee, but it also can create some challenges for the organization and for management. Now, before you get the tar and feathers out, hear me out.
An employee gets hurt. They need medical care and may have to miss work. When they come back, they may have restrictions and can't do their normal job yet. So, who fills the gap? Someone else may have to cover their job. You may need to move another employee, train someone new or pay overtime. The injured employee may have follow-up doctor visits, which means more time away from work. Meanwhile, the rest of the team is trying to keep everything moving. Then, to top it all off, your workers’ compensation insurance costs may go up. But is there a solution? Is there some secret method to turning this around?
I wish there was an easy answer. Some seminar we all could send $199.99 and our safety manager to. I wish they could come back from the self-help seminar with a simple catchphrase or buzzword that would fix it all. Or what if there was a pill that we could take that would fix it? A GLP-1 for workers’ compensation, if you will. Instead of weight loss and a lower A1C, it would lower your workers’ compensation insurance rates. Yeah, that would be nice. So would another Super Bowl win for my Chiefs. It just isn’t that easy, but you can find some good foundational truths to apply to your company and safety program to help reduce the cost of your premium.
One of the big numbers in workers’ compensation is your EMOD, or experience modification rate. In simple terms, your EMOD is a number that helps insurance companies measure your company's history of workplace injuries and claims. Your company is compared to other companies that do similar work. They look at things like how often employees get hurt, how serious those injuries are and the type of work your employees perform. Other factors can also play a part. It can get confusing. It can also get frustrating. But in my experience, companies that do workers’ compensation well usually have three strong parts to their program.
Return-to-Work Policy
A good return-to-work program is a must for any successful program. When possible, an injured employee should be able to return to work while they recover. That doesn't mean putting them right back into the same job and hoping for the best. These might be light-duty or modified-duty assignments while the employee is recovering. Maybe they can't lift more than 10 pounds. Maybe they can't climb ladders. Maybe they need to sit more often. The company can look for light-duty or modified work that fits those restrictions. There is a lot of value in getting an employee safely back to work.
Companies that have a return-to-work policy have employees who return to full duty faster. The employee also does not feel isolated from their teammates during recovery. It also sends an important message: We want you here, and we want you to get better. A good return-to-work program isn't just about saving money. It is about taking care of people while helping them safely get back to their regular job.
Established Injury Reporting Policy
The second crucial part of any successful workers’ compensation program is an established injury reporting policy. All injuries must be reported, not just the major ones. This sends a message that, once again, the company cares about its employees. It also allows management to identify issues that arise from minor injuries and address them before they become more serious ones. This policy should also ensure follow-up protocol with the injured employee. Follow-up is crucial and should be frequent: later in the day after the injury, before and after physician appointments, and the next morning. The more follow-up that is given, the less chance the employee will slip through the cracks. Once again, it reinforces the company’s true concern for the employee.
Interactive Safety Culture
The final ingredient in a successful workers’ compensation program is to have a culture that is interactive. Having teams that feel seen and heard goes a long way in reversing trends in workers’ compensation costs. It starts with leadership. Leadership that sees more than the boardrooms. Leadership that visits with more than just the local manager. Someone from leadership needs to visit the boot pit from time to time. It doesn’t always have to be the CEO, but those visits give the CEO firsthand information from leadership and help create meaningful conversations about what is happening in the boot pit. It can’t stop there, though. Concerns must be addressed. Maybe more training; maybe you need to change procedure; maybe you need to address some issues where your operations do not reflect your values. Spending effort here creates culture. Creates conversation-based safety.
Ultimate success of a workers’ compensation program is about more than acronyms, claim costs or premiums. It’s not easy or simple. But the goal is to take care of our employees. By ensuring you are addressing the issues, needs and hazards. By ensuring the employee feels safe and seen. By ensuring the employee returns to work. These steps will allow your workers’ compensation program to succeed.