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HOW IT WORKS ● WHAT YOU'LL GET ● WHY CHOOSE WORKERS' COMP KIT
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Case Study # 3: The Large, Multi-Unit Fortune 500 Company
Problem: A Fortune 500 company with 17 business units contacted WorkersCompKit.com six months ago. The company was comprised of:
- An R & D unit
- 15 manufacturing locations
- Sales force divided into 5 US and International territories. Locations were widely dispersed within the US.
The newly hired Risk Manager had to grasp workers' compensation cost issues for each of the sites, some of which were not doing very well, but it was unclear why.
- The goal was to develop an overall cost reduction plan that addressed individual issues for problematic sites
- The risk management budget had allocated only $50,000 to fix the problem
which would have limited the project scope to:
- Consultants traveling to 3 sites to conduct onsite familiarization tours
- Conduct written assessments
- Perform telephonic diagnostics, and
- Write a complete report of their findings
- Under those parameters, the project would have taken 4 - 6 months to complete. There were several flaws in this approach:
- First, there was not enough money to assess every site
- Secondly, there was not enough money to develop an implementation plan and roll a program out
- Participants would likely become fixated on the assessment report rather than implementing report recommendations, and implementation is the most difficult aspect of creating an effective program. This didn't happen.
Solution: Using WorkersCompKit.com, the Risk Manager had each site take a comprehensive, web-based Best Practice Assessment and receive a WC Target Score. From this, specific Recommendations for Improvement were generated for each business unit. Within one week all locations had received their score and recommendations.
- From this, specific Recommendations for Improvement were generated for each business unit.
- Within one week all locations had received their score and recommendations
- Scores were ranked and responses were pooled into a Best Practice Profile
From this, the Risk Manager learned which divisions needed the most help and what help they needed:
- She pinpointed specific issues for problematic sites and shaped a centralized implementation strategy
- This included a comprehensive communication program that addressed the lack of uniform post injury response procedures and inconsistent return to work programs
- She learned that medical personnel at many units did not know the company had a large deductible and were unaware the cost of workers' compensation was paid by the company, not the third-party administrator
- With our guidance, the Risk Manager then used Workers' Comp Kit to develop a two-day training program
- This was attended by 35 Injury Coordinators, Nurses and Claims Coordinators to ensure uniform implementation at all sites
- Rather than developing the materials from scratch, the Risk Manager customized materials from the tool kit
- After training, there was a period of implementation
- Once implementation was underway, Risk Manager was able to track progress through. For example, she monitored when each site downloaded tools such as sample emails, forms, and Supervisor PowerPoint Presentation by viewing the dashboard
- She substantiated the cost savings of transitional duty to senior management using the Return to Work Ratio Tracker and Transitional Duty Cost Calculator
- In addition, the companies hired a part-time Medical Advisor, a physician experienced in workers' compensation and claim file review
- He helped evaluate the significance of the injuries and the appropriate duration of absence
- When this was exceeded, he spoke directly to the treating physicians to find out the reason for the extended absence
Within three months, this company's best practice usage increased by 30%. 100% of sites showed increased scores in their problem areas
Results: Risk Manager was able to structure a centralized program that accommodated issues in all problematic sites. This resulted in: an improvement in return to work ratios at 100% of the locations There was a 25% reduction in loss costs within the first six months of the program
- A 30% overall reduction in number of lost work days
- Improvement in return to work ratios at 100% of the locations, that resulted in a 25% reduction in loss costs within the first six months of the program
Ongoing training was conducted via webinars using Workers Comp Kit. This enabled the Risk Manager to train staff remotely from her office and enhanced communication among Injury Coordinators at the locations.
Thanks to WorkersCompKit.com:
The Risk Manager completed the assessment and implementation project for under the $50,000 budgeted for this endeavor:
- The scope of the project was broadened to include 17 sites instead of only 3
- The assessment was completed in a fraction of the time it would have taken to do it the "old-fashioned" way
- Implementation rather than assessment became the focus of the project because training for Injury Coordinators was held within 3 months of the divisions receiving their individual WC Target Scores
- Each division learned to input their loss data and determine their own benchmarks. All units measure their benchmarks monthly using WorkersCompKit. They upload the results to the Risk Manager for review
- Each unit was able to re-assess its performance under the watch of the Risk Manager and her designee to observe their WC Target Scores increase and their Cost Per FTE decrease
- Monitoring was centralized to make it much easier for the Risk Manager to build a centralized project control structure.
With Workers' Comp Kit the Entire Company Becomes Involved
Finally, Workers' Comp Kit requires that employers take a more active role in controlling costs because they themselves are performing the assessments and, based on the recommendations Workers' Comp Kit generates, they customize implementation as well.
In the past, employers took a more passive role in their recovery. Now, Workers' Comp Kit gives employers much more control over the depth and breadth of their workers' comp management projects
When utilized properly, Workers' Comp Kit will save your large company money, just like it did for this one. For more information on how your company can reduce its workers' comp costs, read How the Workers' Comp Kit Works.
For more information about how you can greatly reduce your Workers' Compensation costs, call us at 860-553-6604, or send us an e-mail, or simply submit this short form.