How to Minimize Workers’ Compensation Costs for the Staffing Industry

Second to payroll, workers’ compensation costs are the most significant expense fortemporary staffing companies.

The continually changing number of employees means it’s important to maintain proper payroll and revisit it regularly to avoid payment miscalculations. Understanding job specifications is critical as inaccurate classification codes can lead to either overpayment, thus restricting cash flow or underpayment which often results in large unexpected fees.

How a Staffing Agency Can Reduce Workers’ Compensation Costs

  1. While recruiting an employee, you must do a few background checks about their personality and any addiction, injury, or violence history. Ensure that you do not appoint a high-risk employee to a hazardous work situation.
  2. Make sure to test and verify the skill of new employees. A poorly skilled employee is more prone to accidents.
  3. Workplace safety is a must. Ensure that the employees have required safety equipment at the workplace to prevent him/her from injury or fatal accidents.
  4. Ensure adequate training for the workers so that they can easily perform the tasks assigned to them during the job. Also, ensure that staff have the proper training to report work related injuries and hazards.
  5. Employ a workers’ comp claim coordinator who can regularly and actively follow-upwith every employee who is recovering from a work related injury.
  6. Make sure that your employees are fit for duty by taking tests to determine if they are capable of performing their tasks and returning to work. For previously injured employees, set-up and use a return to work program.
  7. Work with a workers’ compensation expert who understands your business and can provide you with multiple ways to minimize workers’ compensation costs.

For more information and strategies for minimizing risks and costs contact PMC Insurance Group.

By PMC Insurance Group

Since 1996, PMC Insurance Group has worked to help independent agents grow their client base by offering workers' compensation solutions for a wide array of businesses. As one of the most distinguished workers' compensation wholesalers in the country, we have the tools and resources to help you create coverage programs for both small businesses and large accounts.