Organizations seeking to control insurance costs should consider working with their HR departments to review specific hiring practices and identify employee benefits costs drivers. By hiring qualified talent and having the resources they need to be healthy, organizations can retain great team members, minimizing turnover to reduce hiring costs, and keep Worker’s Comp and benefits claims as low as possible. Here are three key areas to focus on:
1. Hire Qualified (or Train) Employees
Well-trained, qualified talent not only keep workplaces safe, but also reduce costs associated with on-the-job injuries. To avoid accidents and injuries, your employees should have the capabilities, knowledge, and training to do their jobs safely. Here are a few ways you can do that:
- Make sure new-hire candidates understand the demands of the position.
- Check for certifications and licenses.
- Invest in field-specific education and training.
2. Identify Benefits Costs Drivers and Encourage Healthy Behaviors
The health of your employees matters because chronic diseases and health claims drive up your employee benefits costs. The best way to identify the cost drivers in your population is by using a data analytics platform, which identifies the risk in your population. Once identified, risk mitigation strategies can be implemented. Here are some key steps to consider:
- Identify the reason for benefit cost increases.
- Manage chronic diseases.
- Implement wellness programs.
3. Foster Work-Life Balance
Promoting a healthy work-life balance can yield significant benefits for your organization, including keeping benefits costs as low as possible. Healthy and happy employees tend to be more productive and overall miss fewer days of work.
TIP: Encourage employees to take time off when needed and offer flexible working hours (including remote work options).
Frequently Asked Questions About Controlling Employee-Related Insurance Costs
Q: How does hiring qualified employees impact insurance costs?
A: Hiring well-trained and properly certified employees reduces the risk of workplace accidents and injuries, which can lower your Worker’s Comp claims and premiums over time.
Q: What are “benefits cost drivers,” and why should we track them?
A: Benefits cost drivers are factors, like chronic health conditions or frequent high-cost claims, that raise your overall benefits expenses. Identifying them allows your HR team to target risk-reduction strategies, like wellness programs or preventive care initiatives.
Q: How can we encourage employees to adopt healthier behaviors?
A: Offer incentives for wellness program participation, provide access to preventive care, and communicate the value of healthy lifestyle choices through regular internal campaigns.
Q: Does improving work-life balance really affect insurance costs?
A: Yes. Employees with a good work-life balance experience less stress, take fewer sick days, and are less likely to experience burnout or turnover, which indirectly lowers both benefits and Worker’s Comp costs.
Q: How often should we review our hiring practices and benefits strategy?
A: Conduct an annual review with HR and your insurance broker to assess claims data, benefits utilization, and any changes in your workforce or industry regulations.
Contact PSA, a Hilb Group Company
PSA is here to help you retain great team members, minimize turnover to reduce hiring costs, and keep Worker’s Comp and benefits claims as low as possible. Connect with our experts to learn more about the strategies discussed above.
