As June 30 fast approaches it is not just the Australian Tax Office you need to be mindful of but also your workers’ compensation cost of claims report. If your premium is due for renewal at financial year end you need to be taking the initiative about managing the potential cost of workers’ compensation. Proactive employers would be regularly in touch with their Agent and Broker (if they have one) and Workplace Rehabilitation Provider.
YOUR PREMIUM WILL BE IMPACTED BY YOUR CLAIMS’ PERFORMANCE.
In NSW all premiums are calculated by taking your industry classification rate and multiplying it with how much your business pays in wages. This is called average performance premium. Your industry classification rate is based on the risks associated with your type of work. This is where the premium rate is applicable.
If your average performance premium is over $30,000, you are considered a medium to large employer and your premiums are experience-rated. This means your premium will be impacted by your claims’ performance; and wages (OR HOW LONG YOUR INJURED WORKERS ARE AWAY FROM WORK) are the biggest factor in how your premium is calculated.
SO WHAT DO YOU NEED TO DO?
1. What Has the Agent Allocated for Wages Against Each Injured Worker?
You need to be aware of costs in terms of wages for time lost that have been allocated against each claim as these will directly affect the calculations for your premium renewal.
2. What Can You Do to Reduce Impact Of Lost Wages?
Every one of your workers who has an accepted claim and is not at work in some capacity is a time bomb for your premium. You cannot afford to NOT offer suitable duties. In fact it is more expensive to have someone sitting at home doing nothing than have them at work doing alternate duties.
3. Is Every Claim That Can Be Closed Off?
Don't assume just because an injured worker is fully recovered and the claim is resolved it is not appearing on your cost of claims report. If it has not been removed then this could be added to the calculations for your next premium.
4. Are the Wages Of Your Injured Worker Properly Calculated?
Once again do not assume that all is correct on your cost of claims report. You need to check the reckonings for reimbursement of wages or PIAWE by the Agent to ensure they are correct.
5. Are You Paying the Correct Tariff for Your Industry and Workers’ Activities?
It’s your money on the line (and sometimes a big difference to your bottom line) so you need to be vigilant about how you are being charged. How does your workers’ compensation performance compare to your industry generally?
6. What Does Your Workplace Culture Look Like?
Workers with aches and pain and injuries who are not professionally managed have a negative impact on the workplace culture both directly in terms of the premium impact and indirectly on business factors like absenteeism and morale.
YOU WILL BE REWARDED OR PENALISED ACCORDINGLY
If your claims performance is better than the Scheme average, then your premium will be lower than your average performance premium; and possibly less than your competitors. If you injure more workers and they have more time off then you will be penalised accordingly. If your claims performance is worse than the Scheme average, then your premium will be higher than your average performance premium.
Ouch. What if your competitors are doing better?
TAKE-AWAY FOR EMPLOYERS
Make safety a priority
Appoint an experienced RTW Co-ordinator and ensure they have the necessary resources to be outstanding in their role.
Engage an Outsourced RTW Co-ordinator if you only want to pay for it when you need it.
Act on aches and pains before they become injuries.
Connect with a local Medical Centre that will look after your workers with aches and pains and injuries.
Take action immediately a claim occurs.
Consider a workers’ compensation Broker to ensure you get the advice and service you need.
Nominate a Workplace Rehabilitation Provider (Active OHS of course) as part of your RTW team and add their details to your RTW Program
Employers taking control of the injury management and return to work process is best
practice. Employers being proactive about preventing injury and their workers’ compensation claims to ensure the premium is minimised is good business. Employers upholding their commitment to the health safety and welfare of their employees have the competitive advantage.
Can you afford not to take action?
UNLOCK THE SAVINGS IN YOUR COST OF CLAIMS
Want to know the facts about your workers’ compensation premium?
Want to know more about an Outsourced RTW Co-ordinator?
Contact us now!