To be successful in today’s business world, companies need to find every competitive edge possible. Some might be surprised to find that Ohio workers’ compensation could be one of those competitive edges. But how would you know?
The world just recently witnessed the 2016 Summer Olympics. The athletes that competed in these games trained for hours each day in preparation of this one event. In doing so, the swimmers competed against other swimmers, runners against other runners and so on. This seems obvious within the sports arena. But why don’t we do this within the workers’ compensation arena? In order to know how your company is really performing regarding your workers’ compensation, you need to compare your company with other companies in your specific industry, like athletes do in their specific sports.
In gaining a competitive edge over the competition, athletes will try different methods of training, evaluate their diets and even find new ways of recovery. These athletes never stop looking for that competitive edge. Neither should you. The following are some questions you should ask about your business and your workers’ compensation program:
• How do you compare within your industry?
• What is your lost time ratio compared to like businesses?
• How does your average claims cost compare to your competitors?
• Do you experience more severe workplace accidents than other companies in Ohio?
• Are you getting the appropriate discount on the medical bills according to the fee schedule?
If your organization is in the manufacturing business, the answers to these questions will probably be different than a company who is in an office setting. That is why it is important to know how you stack up again your competition. For example, if your average claims costs are less than your industry average, that could mean that you are spending less on workers’ compensation than your competitors allowing you to use those funds for other resources. Another example is if your lost time ratio is lower than your industry average, that might help your company get the winning bid for a job. Your Managed Care Organization (MCO) should be able to help you gather and evaluate this data.
Comparing your organization with others in your specific industry can help you determine if you have any of those competitive edges within workers’ compensation.