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 2018 Winter Olympics. The athletes that competed in these games trained for hours each day in preparation of their specific event. The skiers competed against other skiers, hockey teams against other hockey teams, so on and so forth. This seems obvious within the sports arena, so 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, just like athletes do.
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, and 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’s why it’s important to know how you stack up against 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 assist you to gather and evaluate this data.
Comparing your organization with others in your specific industry can help you determine if you have a competitive edge within workers’ compensation.