By Robin Moch, partner at M.E. Wilson
Recently, I had the opportunity to speak at the annual HR Tampa conference on the crucial role Human Resources plays in managing workers’ compensation claims. As often happens in such sessions, the conversation circled back to company culture, claims handling and the importance of having effective policies, and procedures, in place. The discussion reinforced that HR’s role in workers’ compensation goes beyond claim management—it’s about creating a proactive culture of safety, and well-being, throughout the organization.
A saying often mentioned in these discussions is, “Culture eats strategy for breakfast.” Whether or not you agree with that metaphor, companies with a strong safety culture consistently outperform those that don’t prioritize it. When employees feel that their safety is a top priority, it can significantly impact both their behavior and the organization’s claims experience.
Hiring Practices: The Foundation of Claims Prevention
Workers’ compensation professionals face various challenges and one of the most critical tasks is ensuring the right employees are hired. A company’s hiring process directly impacts its overall performance and claims experience. Thorough candidate screening and ensuring a good cultural fit can yield long-term benefits, particularly in terms of safety.
A robust hiring process typically includes multiple stages, such as comprehensive interviews, background checks and, sometimes, physical capability assessments, depending on the job. Involving different departments or team members in interviews helps ensure a well-rounded evaluation, increasing the likelihood of hiring individuals who align with the company’s values, including its safety standards.
An effective hiring strategy also supports better underwriting outcomes. When an insurer evaluates a company, they assess various factors, including the employer’s approach to hiring. If a company demonstrates a rigorous, discerning hiring process, it may benefit from more favorable premiums and terms. It’s essential to communicate your company’s full story, as it’s critical in the quoting process and may qualify the company for alternative risk solutions, like group or single-cell captives, which can be game-changers.
The First 24 Hours Matter: HR’s Role in Workers’ Compensation Claims
HR plays a significant role in shaping the outcome of workers’ compensation claims. What happens in the first few hours after a claim occurs can greatly influence its resolution. HR professionals are often the first contact for employees reporting workplace injuries and their response can make all the difference in how the claim progresses.
HR should have clear, consistent procedures for managing claims as soon as they are reported. Ensuring that employees receive immediate medical attention, if needed, and that all documentation is completed accurately and promptly can help prevent delays and complications. HR can also facilitate communication between the employee, supervisor and insurance carrier to keep everyone aligned.
HR’s involvement extends beyond the immediate aftermath of an injury. Maintaining regular communication with injured employees throughout their recovery is critical. Offering support and flexibility while reinforcing the company’s commitment to employee well-being fosters a positive experience and improves the chances of a successful return-to-work outcome. It’s also essential to stay highly active in the claims process, as carrier adjusters are often overloaded and may be new to their roles. Bottom line: if you’re not actively monitoring claims, ensure someone qualified is.
A Proactive Approach to Workers’ Compensation
The takeaway from this discussion is that HR professionals are integral, not only to managing workers’ compensation claims but also to preventing them. By fostering a strong safety culture, implementing effective policies and focusing on quality hiring, HR can significantly impact claims frequency and severity. Additionally, HR plays a pivotal role in the early stages of any claim, ensuring the right actions support both the employee and employer. By adopting a proactive approach to workers’ compensation, companies can create safer, more productive, work environments, reduce liability and, ultimately, achieve better outcomes for both the organization and its employees.
Robin Moch joined M.E. Wilson in 2005, bringing extensive experience in claims and risk management; she earned a partnership in 2015. She plays an integral role in upholding M.E. Wilson’s mission to always do the right thing. Known for her attention to detail and strong communication skills, Robin is a trusted advisor and an essential part of her clients’ teams.