Curbing compensation costs

The number of serious workplace injuries is declining while the costs associated with them are growing. According to recent statistics, there were 6.2 percent fewer injuries in 2003 than the previous year, but compensation costs increased 0.7% to $50.8 billion for wage payments and medical care.

The ranking of the top causes of the injuries remained unchanged, providing safety managers with direction for preventing the most serious injuries. “If you want to dramatically cut worker compensation costs, understand why your employees get hurt and address these sources,” one expert said.

The top 5 causes of workplace injury are: overexertion, falls on the same level, bodily reaction (slips, trips and falls), falls to lower level, and struck by object.

Safety managers can follow these steps to cut compensation costs:

* Identify the injuries that drive your compensation costs

* Prioritize the ones you want to address

* Set clear targets for reducing them

* Put in place tactics and training to reduce them

* Track performance and update the plan