Five steps to reducing employee compensation costs

Five steps to reducing employee compensation costs

Is your organization burdened by rising employee compensation costs? If so, you are not alone. Kapnick can aid you. Our five-step plan will aid you develop a safety program that complies with Occupational Safety and Health Administration (OSHA) standards and is designed to drive continuous improvement, helping you spend less money on employee compensation with a holistic approach that protects your bottom line.

A five-step approach

The five steps designed to promote a protected work environment, achieve OSHA compliance, reduce accidents, and ultimately reduce staff’ compensation costs are:

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Step 1: Develop an OSHA-compliant safety program

In addition to being a requirement for employers, OSHA standards provide a good path to reducing accidents. Companies with rigorously designed OSHA-compliant programs have fewer accidents, more productive employees, and lower staff’ compensation costs.

Step 2: Integrate the program into your every day operations

Rules alone won’t produce results; For a program to achieve success, you wish to move from paper to practice. Implementing a policy requires a clear strategic plan communicated to key players, good implementation of that plan based on developed competencies, and a culture that inspires and rewards people to give their best.

Providing supervisors with the knowledge and skills through training is critical to the success of any program. Additionally, safety programs focus on being proactive reasonably than reactive. Accident investigations are an excellent source of knowledge about actual or potential problems occurring in the workplace.

Step 3: Investigate all accidents

To reduce staff’ compensation costs, it’s essential to reduce the variety of accidents. The ability to reduce accidents increases significantly when accidents are fully investigated reasonably than simply reported.

Accident reports cite facts; accident investigation goes deeper to discover the root reason for the accident and make improvements to prevent it from happening again. This have to be done for accidents of all sizes. If you focus only on incidents that have to be reported on the OSHA 300 log, you are closing your eyes to the largest category of accidents: incidents requiring only first aid. Many corporations are nervous about recordable accidents or lost time due to the significant costs involved, but out of every 100 accidents, 10 can be recordable and one can be a lost time incident. If you simply investigate recordable events or time-loss accidents, 89 out of 100 incidents will go unnoticed.

Reducing serious accidents means it’s essential to reduce the overall rate of all accidents, including accidents requiring first aid. This only happens when each incident is thoroughly investigated to determine its root cause and remedial actions are identified and incorporated into every day work.

Step 4: Provide safety competency training

Training plays a significant role in ensuring safety and reducing staff’ compensation costs. Competencies, greater than the rest, will improve all facets of your corporation and reduce costs. Supervisors must have the knowledge and skills to integrate a safety program into their specific areas of responsibility. All employees need to know what is expected of them when it comes to implementing protected work procedures.

Step 5: Continuous improvement audit program

Once programs are developed and implemented, they needs to be reviewed repeatedly to ensure they continue to be relevant and effective.

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