Since the new year is about upon us, I would guess that you spent some time thinking about what may be ahead of your company this next year, and/or have actually conducted some planning for 2016.
With each new year comes new challenges, surprises and new opportunities that you may have not considered. No matter what thoughts you have for the coming year, or planned, I believe the following comments that are about to be shared will help you experience a more successful 2016.
Those of us in the risk management and insurance community have determined there are some important employer workplace issues that decision makers need to know about. Plus, there should be ways to address these challenges so you are in a strong leadership position to meet your organization’s financial goals and objectives.
With this writing we begin a multi-part series to share these issues, as well as, provide some solutions to avoid, or at least management them, to achieve the best outcomes.
Let’s begin with some background so all of us are, as someone once said, “we are all on the same page.”
George Harrison of Beatles’ fame may not be known for his philosophical comments, but what he said many years ago makes perfect sense and is certainly timeless: He said “If you don’t know where you’re going, any road will take you there.”
There are several reasons why we should be having this discussion, because if the issues are not understood, how can you be prepared for them:
- The issues we’ll cover have legal, financial, and personal ramifications.
- A knee-jerk approach to addressing these issues is typically not effective.
- Situations worsen when these issues aren’t properly addressed.
- Without understanding them, how can you influence and control them as you manage your business?
- So you need a plan of action to create the best outcomes your company and employees, or as George Harrison indicated, have a plan to know where you wish to go.
In my experience, when employers have a clear understanding of the issues they could be facing, they create better strategies and implement effective solutions.
Before we dive further into this topic, let’s review some background information about workers’ compensation insurance benefits and how this program fits into your organization’s overall insurance and risk management programs.
Even though this benefits summary is specific to California, other states provide similar types and amounts to injured employees.
Workers’ Comp Benefits:
MEDICAL CARE – Paid for by an employer’s insurance to help an employee recover from an injury or illness caused by work. Doctor visits, hospital services, physical therapy, lab tests and x-rays may be provided.
- TEMPORARY DISABILITY BENEFITS – Payments for lost wages because injury prevents an employee from doing their usual job while recovering.
- PERMANENT DISABILITY BENEFITS – Payments if an employee doesn’t recover completely.
- SUPPLEMENTAL JOB DISPLACEMENT BENEFITS – This is a voucher for up to $6,000 that can be used for retraining or skill enhancement at an approved school, books, tools, licenses or certification fees, or other resources to help find a new job.
- DEATH BENEFITS – Payments to an employee’s spouse, children, or other dependents if there is a death from a job injury or illness. The amount of payment is based on the number of dependents.
In the next blog posting we will go further into why workers’ comp is the “heart” of an employer’s risk management and insurance programs and how workers’ comp is interrelated with all these plans.