SAN DIMAS, Calif. — Since joining CUSIG four years ago, Western Corporate Federal Credit Union has saved nearly $750,000 on workers' compensation premiums, according to Tom Swedberg, vice president of strategic planning. This year alone, WesCorp's premiums are $250,000 less than they would have paid for a standard policy.
The key to all CUSIG's lower premiums has been each member's commitment to developing and implementing a specific injury and illness prevention program (IIPP), which details the who, what, where and when of successful workers' compensation case management. Though OSHA requires IIPPs for all companies, few effectively implement them.
"I think what's important about the IIPP is it makes an organization really stop and ask: 'What will we do and who is responsible?' That preparedness and helps us handle cases more efficiently and stop them from becoming bigger problems," said Michelle Esser, vice president of human resources for WesCorp.
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CUSIG IIPPs are more comprehensive than typical programs, including an annual ergonomic and safety review of workstations, employee safety training and annual on-site health screenings. WesCorp also has its own safety coordinator, Steve Smith who along with Senior Human Resources Coordinator Byron Rozul keep a close eye on safety issues.
WesCorp has also found that encouraging employees to report potential injury or health issues–even going so far as to communicate that it's their responsibility to do so–has lowered claim amounts and improved employee relations.
"That's been a key component, if your employees know that if they speak up, the issue is going to get corrected," Swedberg said, "in contrast to other companies, some of whom tell employees to not bring it up because nothing can be done. Here at WesCorp, employees know that if they have an issue and could prevent it from becoming something worse, they can speak up and it will definitely be addressed."
Esser said she's amazed at companies that are unwilling to purchase ergonomic items that cost less than $100 each in order to prevent workers' compensation claims of tens of thousands of dollars. However, she reasoned that for businesses that purchase workers' comp policies, there's no financial incentive for prevention or more aggressive case management.
In contrast, CUSIG members have a financial interest in prevention and claim management practices because the self-insured group's premium rates are increasingly based on actual claim performance.
"At the end of the day, all we want is a good resolution for employees," Esser said. "If they get the appropriate medical care, that's really all they want. Ninety-nine percent of employees aren't looking to gain from injury, they just want to get better."
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