Creative programs help reduce workers’ compensation costs

When employees are injured on the job, some are tempted to take advantage of workers’ compensation benefits. By implementing a program that offers good incentive to return, employers can reduce the risk of paying more benefits than necessary.

Recent research shows that employers lose about 80 million work days because injuries or illnesses that happen on the job.

Employers are left to deal with the high cost of workers’ compensation premiums, lost productivity and disability benefits. However, by creating a special incentive program, employers can greatly reduce these costs.

These five tips will help you address a special incentive program for your employees:

  • Address environmental, physical, knowledge and emotional factors that may prevent employees from returning to work.
  • Make the transition from temporary to full-time work easier for employees.
  • Focus on employee’s abilities instead of their disabilities.
  • Improve employee morale by increasing incentives for returning to work and staying safe.
  • Maintain productivity by lowering the number of lost work days.

These programs help the employee’s recovery processes. Recent research shows that 50-percent of employees who stay out of work for more than six months will never return to their jobs.

If they stay out more than one year, the likelihood of returning to work is about 10-percent. Getting employees back to work as quickly as possible is the best way to bring about feelings of accomplishment for the injured individual. It also lessens the financial impact on the employee and his or her family. To make sure a program is as comprehensive as possible, include the following elements:

  • Provisions that require meaningful tasks instead of simple busy work.
  • Employee eligibility criteria.
  • Provisions for alternative work assignments that benefit that employer and employee.
  • Descriptions of duties the injured employee must perform.
  • Provisions for situations where employees may have to take additional medical leave time after returning to work.
  • State conditions and time parameters for temporary assignments.

For employees everywhere, workers’ compensation consumes a sizable portion of overall personnel costs. By having a solid return program, employers can reduce those costs and many others.

To learn more about this beneficial type of program, feel free to contact Gunn Mowery at 800-840-1243, or e-mail us at Become our Facebook fan at

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Gunn-Mowery accepts no liability for the content of this blog post, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. If you are not the intended recipient, you are notified that disclosing, copying, distributing, or taking any action in reliance on the contents of this information is strictly prohibited. Gunn-Mowery provides attributed content for your continued awareness and convenience. Content that appears is not intended to substitute for binding insurance advice.

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