Step Up, Owners!



Whose responsibility is it to control the cost of workers’ compensation? The Safety Manager? The Human Resource Manager? The CFO? Or is it the responsibility of the Owner, General Manager, or CEO?
It’s a missed opportunity if the leader of the organization doesn’t take advantage of his position to impact all the factors that affect the ultimate cost of workers’ compensation to his business. Nobody is in a better position to establish that safety is the highest priority in the company.

There’s another factor at play these days that makes it imperative that the Boss steps up: fraud. Fraudulent claims are particularly expensive, as they are often litigated. Whether the claim happened away from work but is being reported as if it happened at work, or is a phantom injury that never occurred, or is the exaggeration of a small injury, these claims have nothing to do with safety training and OSHA compliance. They have everything to do with the culture of the organization, and no one is in a better position to establish and reinforce the culture than the owner, GM, or CEO. While it may be an uncomfortable talk to give, when the highest ranking officer in the company addresses the issue of fraud with the current workforce, and with every new employee, it establishes that honesty is as important as safety, and when honesty is embraced as a company value, not only do fraudulent claims go down, but the entire culture is stronger. The result is always positive, because a stronger culture produces fewer claims and reduces workers’ compensation costs.


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