A work injury can happen at a moment’s notice, but the aftermath has a lasting impact. The cost of work injuries is more than just a few missed days. Employers take a hit in many ways which often go unnoticed.
While employers try to plan in advance for workplace injuries, workers comp claims can take an interesting turn. If an employee isn’t satisfied with their medical treatment or compensation, they may take things to court.
From compensation to possible lawsuits, the costs of work injuries quickly pile up. Here are more ways workers compensation cost employers in the end.
Workflow Is Compromised
You know the old saying that there’s no I in team. When one member is missing, the entire workflow is affected. Productivity declines, confusion grows, and communication can take a serious hit. It’s even worse with a leader or key member is injured.
Time is money, and missed deadlines can be more costly than you think. Meetings have to be rescheduled, orders need to be rushed, and more food will need to be charged to the company credit card. It may not seem like a lot at the time, but all those details add up.
When one team is affected, the entire department can feel the strain. When one department is slowing down, it puts other departments behind schedule. This is especially true for small businesses and startups.
Treating Injured Employees
The most costly part of workers’ compensation is treating employees. While many workplace injuries are minor, some can be much more serious. Broken bones, severe head injuries, and serious back injuries can keep employees at home for several days, even weeks in some circumstances.
To save money on workers’ comp, more employers are using MCOs. Also known as Managed Care Organizations, MCOs are run by employer health care providers to save companies money while providing decent care. Self-employed individuals can also access MCOs through their insurance plans if they wish.
MCO doctors treat employees’ work injuries, but they also practice preventive care and education, in the hopes of preventing costly work injuries in the future.
What if an employee isn’t satisfied with their treatment at an MCO? This is a great question. Depending on where they live, they may be able to choose their own workers comp doctor or seek a second opinion.
As an employer, you must thoroughly research workers compensation laws in your state before deciding to use an MCO versus other alternatives. If employees aren’t happy with their care, that will cost you down the line.
Understand the Cost of Workers Comp Claims
Workplace injuries happen, but don’t let the high costs of workers comp claims wipe out your business.
Talk to your employees about the importance of safety. Implement strategies that prevent injuries in the future. Plan ahead by offering solutions that work for you and your employees.
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Interesting related article: “What is compensation?“