As a manager or employer, you know how important it is to retain your employees. But what if you could retain them even more?
Workers' compensation programs are a great way to do just that. They provide financial and medical assistance to employees who have been injured in the course of their work. In addition, they help reduce the overall cost of injuries, which helps your business save money and reduce its liability.
That's why it's important for employers to understand what workers' compensation is, how it works, and how it can benefit both employees and employers alike.
Worker's Compensation Improves Employee Morale
Worker's compensation is a great way to keep your employees happy and motivated. This is especially true if you're in an industry where the risk of workplace injuries is high. When you have a worker's compensation program, your employees will feel secure knowing that they can get medical treatment for any workplace injuries they might sustain without having to worry about how they'll pay for it.
If you're working with a highly skilled employee who gets injured on the job, they may feel like their job is at risk because of their injury. If they're not able to work as much or as hard as before, there may be a concern that their employer will find someone else who can do the same job better.
For instance, in the United States, there were 4,764 fatal work injuries registered in 2020, a 10.7% decline from 5,333 in 2019.
This can be attributed to the growing number of companies subscribing to national workers' compensation insurance. With worker's compensation, these worries are alleviated because you can cover all medical treatments related to their injury, including time off and disability payments. You don't have to worry about whether or not this employee will be able to get back on their feet again - you know that they will be covered by insurance while they recover.
Worker's Compensation Boosts Your Company's Reputation
When you have a worker's compensation program in place, you're showing potential employees that you care about the safety and well-being of your workers. The fact that you have a worker's compensation program says to them - "We value our employees." This can make an employee feel like they are more valued and less likely to leave the company.
It shows potential clients that you're serious about protecting their business interests.
Having a worker's compensation program also shows potential clients that you take their business seriously and care about protecting their interests. It shows them that your company is professional, reliable, and trustworthy - all qualities that are important in any business relationship.
After rising 3.9 percent in the year ending March 2021, compensation costs for service occupations in the private sector grew 7.8 percent from March 2021 to March 2022. Compensation costs for private industry workers across all industries and occupations climbed by 4.8 percent over the same time frame after rising by 2.8 percent for the fiscal year that ended in March 2021.
The compensation also makes it more likely that employees will stay with the company longer because they know that if something happens on the job, they will be taken care of.
Worker's Compensation Increases Productivity
If you're like most business owners, you probably have a pretty good idea of what your company is worth. You know how much it's worth to you and your investors, and you probably even know what it's worth to your employees in terms of benefits and job security.
But did you know that one of the best ways to retain talent is by making sure they're safe?
Worker's compensation programs can help you do just that by providing workers with medical care, wage replacement, and other benefits if they are injured on the job. They also provide a legal framework for enforcing workplace safety rules and holding negligent parties accountable.
Compensation is directly linked with productivity. However, in recent years, productivity and pay have diverged: according to EPI statistics released ahead of Labor Day, net productivity increased by 59.7% from 1979 to 2019, while an average worker's compensation increased by 15.8%.
And while there are many reasons why worker's compensation programs will help you retain talents. For example, reducing turnover rates and improving morale among employees - one of the most important is also one of the most obvious - improving productivity.
If you're interested in retaining your talent, there's no better way than to make sure they're taken care of. Workers' compensation programs can help you do just that. We hope it was helpful and feel free to reach out if you have any questions.