Retaining skilled employees is one of the most difficult challenges facing small business owners today. Turnover is extremely costly. According to estimates, it is anywhere from 50 percent to 150 percent of an employee’s annual salary.
If a work-related injury is not managed properly, it can result in the unnecessary loss of a skilled, trained employee. The longer employees are away from the job, the less likely they are to return. Statistics show that if an employee does not return to work within 12 weeks, they only have a 50 percent chance of ever returning. This has an immeasurable impact on workers compensation, both employer costs and employee benefits.
The fundamental reason for most lost time is not medical necessity but the nonmedical decision making and lack of a process that occurs after an employee is injured. The workplace response is key to putting your employees back to work as soon as possible. Studies show that employees’ satisfaction with their employer’s response has a much larger impact on employment stability than does their satisfaction with healthcare itself.
Being guided by a plan that focuses on communication and return-to-work will be far more effective than declining rates in both reducing workers’ compensation costs and improving productivity. Speak to your WCCOP representative today about proper communication as another tool in retaining workers and keeping the cost of worker’s compensation and other insurance premiums low.
