Workers comp insurance may be an expensive aspect of any company. These rising costs have to be managed effectively, or else the entire financial security of a firm could suffer.
One way to do this may be with a wellness program. These are becoming more widespread across many different industries, and the benefits could extend beyond employee health. For instance, a wellness program could be a perfect solution to curb increasing workers comp insurance costs, as it might help employees remain fit, active and in peak condition all year long.
Executives demonstrate confidence in wellness programs
Wellness programs have become more popular for today's employers, according to a survey by the Society for Human Resource Management, as reported by Business Insurance.
However, not everyone is tracking the financial impact of these programs on the company. SHRM's 2013 "State of Employee Benefits in the Workplace" survey noted that only 20 percent of respondents said they looked at the overall return on investment, compared to 23 percent in 2012. Even so, these employers are more confident in wellness programs. Many believe that worker health improved, and health care costs have decreased as a result.
As wellness programs become more widespread, their relationship to workers comp insurance grows. These two elements can be closely linked, and a fit, active workforce is more likely to remain that way.
How wellness programs save money
A wellness program can be a serious boost to any firm's bottom line. According to Occupational Health and Safety Magazine, limiting risk factors can reduce the number of workers comp claims and, as a result, decrease expenses.
For example, these measurements will encourage employees to make certain lifestyle changes. Not only will their quality of life improve, but so will the firm's financial strength. In addition to these benefits, healthier employees are also more productive, and can complete their tasks efficiently while on the job. They are also less likely to miss work, which means the money needed to cover sick employees can be rolled into the implementation of quality wellness programs.
In order to achieve these goals, the entire organization needs to work together, the news source noted. That means human resources, employee safety and the workers compensation department have to be on board. A healthy workplace might cause a decline in the number of injuries and illness, and therefore a drop in workers comp claims.