6 things to know about workers’ compensation

Workers’ compensation can be the bane of a staffing firm’s existence. All staffing firms need workers’ comp insurance for their temporary employees, but it is expensive, and managing claims takes time away from your business.

 

In addition, workers’ comp is often more difficult to manage in staffing than it is in other industries, because while you provide the workforce, you do not provide the workspace, making it more difficult to implement and/or monitor safety practices.

 

Here are some ways to make managing workers’ comp less of a hassle.

 

  • Most staffing firms purchase workers’ comp insurance through an insurance company; however, some states, such as Ohio, manage it at the state level. To determine your state’s rules and regulations, visit workerscompensation.com.

 

  • Choose a workers’ comp provider that has experience in the staffing industry to ensure you have the right protections in place.

 

  • To reduce work-related injuries, screen employees through drug testing, background checks and prior injury history. Talk to new employees about the importance of safety and ask them to report any unsafe practices.

 

  • Make sure you have a comprehensive return-to-work program that includes immediate treatment and follow-up. This reduces your lost time and keeps injured employees productive during recovery. It also means the insurance company pays less in benefits, which can help you avoid premium increases.

 

  • Evaluate your customers’ safety practices. Ensure employees are properly trained and provided with the right safety equipment and also that they’re doing the job they’re qualified to do. Look for patterns in claims — if one client reports a lot of employee fall injuries, talk to it about what it can do to reduce the risk.

 

  • Correctly classify your employees. Classifications affect your bill rates because they depend on the riskiness of the tasks employees perform and environment they work in.