Staffing Case Study: Increasing Claims and Struggling Safety Program
A staffing company outside Chicago experienced an increase in the number of claims spread across multiple clients. This soon led to a higher Experience Modification Rate (EMR). The company knew that to keep claims down, there needed to be a significant improvement in their safety program, but weren’t sure of the specific issues at-hand or where to begin.
To get the company started, Assurance completed a Safety360° – total diagnostic view of their safety program. Through this process, we were able to identify that the majority of their problems were coming from a lack of preventative programs. While the processes were in place to handle claims once they occurred, there was minimal in place to prevent the claim in the first place.
We proposed establishing a safety committee, performing safety audits on prospective clients, as all as other initiatives such as creating a health and safety manual. An in-house safety manager was hired to oversee implementation.
What are the takeaways?
While you can’t always be at a client’s facility to monitor the safety of your temporary employees, you can work at improving your internal safety program, procedures and preventative measures. By doing so, you can reduce claims – and in turn – the EMR that drives insurance premiums.
1. Consistently review all aspects of your safety program – Making improvements and changes can be difficult when you’re not sure where your company stands or where to start. Getting a full diagnostic – like the Safety360° – can be a useful tool to pinpoint deficiencies, as well as provide recommendations and guidance to start improving your safety program. Your program should always include preventative and post-claim measures.
2. Remember that safety starts with you – It’s a common misconception within the staffing industry that safety lies primarily with the clients. Aside from what clients have in place, staffing agencies should have their own safety program, committee and policies that focus on the prevention of incidents and management of claims. All of these should be communicated through a health and safety manual, as well as an Employee Safety Handbook.
3. Strategize when rolling out new programs and procedures – Implementing a new program can be stressful, especially if you don’t have a full-time staff dedicated to safety. Changes to your program should be taken one step at a time in order to be successful. Trying to make too many changes at once can create confusion and leave staff feeling overwhelmed.
What was the result?
Overall, there was a 48% improvement in preventative programs and a 33% improvement in post-claim management. With these improvements, there was a 52% decrease in loss rate and a 43% reduction in claims incurred.
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