As a restaurant owner you have controllable costs and fixed costs. When it comes to fixed costs you hold onto your financial books and hope for the best outcome. However, you can proactively work to get control over your controllable costs, but it does take an effort. One such controllable cost is workers compensation.
You’ll need to start by understanding the basics of workers compensation insurance and know that managing your worker compensation expenses won’t involve a one-step solution, but it is a multifaceted approach. Below are workers compensation cost containment strategies that can be implemented to reduce your restaurant workers compensation costs.
You might have heard that an ounce of prevention is worth a pound of cure or a stitch in time saves nine, meaning that it’s easier to forestall a problem now than fix the results once it happens. Nothing is truer when it comes to managing and containing controllable costs.
If you want to control your workers’ compensation costs, then you must develop a systematic procedure for reporting, monitoring, and correcting workplace behaviors that are considered unsafe. Review our tips to reduce restaurant workers compensation claims. Following these tips should be a priority for all your employees, not just a responsibility held by your managers.
New employees should undergo safety training and existing employees should undergo refresher safety training. It’s easy to skimp on refresher training, but just keep in mind that it’s often the seasoned workers that have performed the same job over and over for an extended period of time that feel most comfortable taking the shortcuts that create safety hazards. During your safety training, you might also consider adding some of the most common unsafe practices and hold a demonstration as to why they should never be part of your employee’s work practices.
Return to Work Program
Take an aggressive approach to providing light duty to all injured employees upon their release from treatment so if you have someone in the back of the house with an injury find them an opportunity to work in the front of the house.
In closing, establishing a proactive safety program is an effective way to reduce your restaurant workers compensation claims, understand how experience rating affects restaurant workers compensation rates and part of your workers compensation cost containment strategies should include an annual assessment the carrier and their rates. You should do a comparison against what you already have in place to see if there are any cost savings available from changing carriers.