When an employee gets injured while at work, it is the workers' compensation insurance that serves as their protection. In most states in the US, it's mandatory policy and required by almost every company. However, despite of all preventive measures, injuries in workplaces keep on increasing every single year, which forces businesses to spend big sum of cash on settling compensation claims. Hence, it's crucial for employers to incorporate effective safety measures, not just to reduce claims but to improve the safety of workplace and security of its employees at the same time.


Using compensation management system software that's tailored to meet the specific goals and needs of an organization is crucial as it helps the company to decrease the severity as well as frequencies of injuries at the workplace. Following are some ways to which you can establish risk free workplace, which will further help in reducing compensation claims and several related costs.


Employees who are working in manufacturing plants, industries, construction sites and the likes are more vulnerable to on-job accidents and injuries. Working with heavy equipment while using hazardous materials just raises safety concerns towards the employee. Hence, employers have to follow series of steps in an effort to improve the safety of their workplace and these steps are:


Risk identification - this is done in order to identify the possible risk/hazard. Hazard is anything that can hurt an employee or third party like for example, frayed or damaged electric cables are probable sources of accidents in the workplace.


Risk assessments - this involves finding all potential outcomes of hazards/risks identified and also, the severity of damage they can cause. In above example, the harm can be electrical shock in frayed electric cables. Check out to learn more about compensation.


Risk control - this is nothing but solving the hazards. The employer has to eliminate hazards otherwise, should at least try making the hazards less dangerous. Replacing damaged electric cords with new ones is among the measures that can be applied for risk control for avoiding electrical shocks. Risk control measures on the other hand will vary depending on the nature of vulnerabilities. On the other hand, effectiveness of step lies in the proper implementation and review of safety measures regularly.



The next best move to reduce injuries at the workplace is by focusing on on-job safety while training the employees. Providing safety training to all employees regarding possible risks in workplace, safe handling of equipment, company safety procedures and rules are all important to ensure that compensation claims will be reduced to minimum. You can also try total rewards software to help you reduce compensation claims.