Running a staffing agency comes with many different costs and having workers’ compensation insurance may be one of the biggest costs overall. But even if a staffing agency may be tempted to cut some features in order to save money, workers’ comp shouldn’t be one of them.
How to Reduce Workers’ Comp Costs in the Staffing Industry
Luckily, there are some steps that can be taken in order to cut down on workers’ comp costs for staffing firms. The following steps can help to reduce an agency’s coverage costs and keep risks under control.
Review and Prioritize
The first step in cutting costs is to identify and assess the risks that a staffing firm’s employees might face. This can be accomplished by conducting a safety inspection of a business before there are any moves made to place employees. An inspection should be completed by an inspection professional familiar with the risks usually associated with the industry. If a construction site is being inspected, then someone with a background in this industry should be used to find common hazards.
Address Issues
Before workers are placed within a company, a staffing firm should create a documented safety plan for working with the client. A staffing agency should not rely on the plans that a client may offer. While you can use their plan as a point of reference, your agency should have its own protocols and set of standards in place to make sure that safety can be upheld at the highest level.
To ensure the safety of workers is upheld, it’s important that there are regular discussions around the best safety practices and safety equipment use.
Put Safety in Motion
Ensuring that safety surrounding employees is upheld is an ongoing process. This means that a staffing agency needs to go in and reassess work environments regularly in order to address any new risks. What’s more, there will always be workers who fail to meet the best safety practices. Staffing agencies should expect this behavior but be willing to correct it. If employees fail to follow the best safety practices, they are endangering not only themselves but those around them.
Employees should receive instant feedback including warnings and corrections and should be let go if this kind of behavior continues. While confrontation should be avoided, being firm on what’s expected and accepted should never waiver.
About Monarch Partners Group, LLC
For more than 30 years, Monarch Partners Group (MPG) and affiliate Nationwide Employer Services LLC have focused on providing Workers’ Compensation insurance solutions for distressed risks and industries. Our long-term history and expertise in the space and market sources enable us to find solutions for business owners and brokers that they may otherwise not have access to. We write Workers’ Compensation coverage for all types of risks in all states with solutions that Employer Organization (PEO), Employer Of Record (EOR) and Captive Insurance programs. To learn more about our products and services, contact us today at (855) 435-5153.