Want to reduce the number of workers’ comp claims your business has each year?
The majority of employers believe that claim frequency is simply “the price of doing business.” This is not the case. Employers who implement workforce well-being programs experience significant reductions in claim frequency. Those employers who do not actively participate in well-being are making payments in the form of insurance premiums, lost time, and future workers’ compensation appeal nightmares.
There is data to support the connection between wellness programs and reduced claim frequency. Let’s dive in!
Here’s what’s on the table:
- Why Employee Well-Being Affects Claim Volume
- The Numbers Behind Employee Well-Being Programs
- The Types of Well-Being Programs That Actually Work
- How To Start Lowering Your Claim Volume Today
Why Employee Well-Being Affects Claim Volume?
Employee well-being has a measurable impact on the number of workers’ comp claims filed annually. The healthier employees are (mentally and physically), the less frequently they are injured. Injuries also heal more quickly.
But here’s what most business owners miss…
Underlying health conditions are one of the largest factors contributing to claim costs. 50% of all US workers suffer from at least one chronic condition, and injured workers with an underlying chronic condition cost employers twice as much as those without an underlying condition. That’s a huge cost multiplier within your workforce right now.
A complicated claim means everything is more difficult. Recovery takes longer. Medical costs rise. If a claim denial occurs, the injured worker might even need to file a workers comp appeal — and that’s when having a workers comp lawyer in Fresno becomes important for safeguarding the employee and keeping things progressing. Legal assistance like that becomes most vital when pre-existing health conditions clash with a workplace injury because that’s when insurers often try to push those claims back on the worker.
Wellness programs stop it in its tracks. Less chronic illness = less complex claims = less workers’ comp appeals hanging around.
The Numbers Behind Employee Well-Being Programs
The information available on well-being programs is frankly astounding. These aren’t minor improvements — they are substantial decreases.
Check this out:
- Workplace Wellness Programs – Companies That Have Implemented Have Seen A 35% Reduction In Workers Compensation Claims
- A meta-evaluation in the American Journal of Health Promotion determined that on average, companies with wellness programs had a 32% lower workers’ compensation and disability costs
- Absenteeism drops around 27%
- Disability claims drop around 30%
Pretty significant, right?
Let’s say your company has 100 claims a year. A 35% reduction means 35 fewer claims. 35 less claims means 35 less times you have to go through the paperwork, the insurance adjusters, the potential workers’ comp appeals process.
And there’s another way that few people think about — length of claim. The longer a claim is open, the more it costs. Employee Well-being programs do more than prevent claims from occurring; they can also reduce the recovery time for an injured worker. A shorter claim = less cost = lower premium next year.
The Types of Well-Being Programs That Actually Work
Employee Well-being programs aren’t all created equally. Some are essentially free gym memberships no one uses. Others impact claim volume.
Here are the types of programs that have proven to work:
1. Physical Health Programs
Physical health programs focus on the largest contributors of injury risk factors, including musculoskeletal imbalances, weight management, and overall fitness. These include:
- Ergonomic assessments and equipment
- Stretching programs before shifts
- Subsidised gym memberships
- On-site fitness classes
Physical conditioning reduces injury risk and speeds up recovery.
2. Mental Health & Stress Programs
The mental piece is a huge part of the equation. If someone is stressed out at work, they’re more likely to be injured, and it takes longer for them to get better. A worker with untreated depression who is injured can have an “open-ended” recovery time, which skyrockets workers’ comp costs.
Programs that help include:
- Employee Assistance Programs (EAPs)
- Counselling services
- Stress management workshops
- Anonymous crisis lines
3. Chronic Condition Management
Employee population health management programs that address chronic illnesses such as diabetes, hypertension, and cardiovascular disease lower claim severities by reducing the complications that accompany these diseases and the injuries associated with them. They’re not glamorous programs, but they literally cut the severity of a claim in half if an injury occurs.
4. Financial Wellness Programs
Financial stress is insidious — it creeps into mental health, which creeps into injury risk. Financial counselling, debt management support, and retirement planning can lower the total stress load on your workforce.
How To Start Lowering Your Claim Volume Today?
Ready to start cutting claim volume? Here’s the game plan…
Step 1: Look at Your Claim History
Begin by analyzing your claims data from the past 3-5 years. Search for trends. What types of injuries keep recurring? Are certain departments racking up more claims than others? Do any health conditions keep showing up in more than one claim? This information will point you to where your well-being program needs to be targeted.
Step 2: Survey Your Employees
Your employees know what they want better than anyone. Take an anonymous survey asking them about current health issues, stress at work, what types of support they would actually utilize, and what barriers there are to receiving healthcare. Don’t assume you know what they want. Ask them.
Step 3: Start Small and Build Up
You don’t have to start with a giant program from day one. Select 1-2 initiatives that are a fit based on your data and employee survey. Get those well-established and operational, then add more. One basic, easy-to-start combo that will fit most companies:
- An Employee Assistance Program (EAP) for mental health support
- A stretching/ergonomics program for physical health
- Chronic condition support for your high-risk employees
Step 4: Track and Adjust
Measure everything. Claim volume. Claim severity. Participation rates. Employee satisfaction. After 6-12 months, you’ll have real data to see what’s working. If one program isn’t moving the needle, swap it out.
Step 5: Build Return-to-Work Into Your Program
And when an injury does occur, a robust return-to-work program helps to prevent a claim from dragging on. Modified duty, return-to-work check-ins during recovery, assistance through the workers’ comp appeal process if a claim is denied – all of these actions help to keep claims shorter and less costly.
The Bottom Line
Employee Well-being programs are effective. The statistics prove it. Employers who invest in their employees’ well-being experience measurable reductions in claim volume and claim severity.
Here’s a quick recap:
- Healthier employees get hurt less and recover faster
- Well-being programs can cut workers’ comp claims by up to 35%
- The best programs target physical health, mental health, chronic conditions, and financial stress
- Start small, measure results, build from there
If you’re a business owner who is dreading watching your workers’ comp premiums go up each year, Employee well-being programs are among the highest-ROI initiatives you can invest in. Take the first step today. Your employees (and your bottom line) will thank you.
