CASE STUDY

Better HR helps manufacturer Lower MOD

Insured

An ice cream manufacturer with 12 employees and revenues of $2.8 million.

Situation

The company had an Experience Mod of 1.9, which was more than three times what it should be.

Assessment

A team of Certified WorkComp Advisors (CWCAs) reviewed the business. It was determined that the elevated MOD was due to several open claims, which were a direct result of poor hiring procedures. The company had failed to put in place a system of pre-employment background checks and physicals. As a result, at least two employees had come on payroll with existing soft tissue injuries to the back and shoulder, a condition further aggravated by the cold temperatures they were often subjected to on the job. In addition, no light duty return-to-work program was ever implemented.

Solution

The CWCAs initiated a better hiring procedure, which included partnering with physicians and medical offices familiar with occupational medicine. Drug screening was also put into place, as was an aggressive return-to-work program in which injured workers could take on restricted duties away from the cold areas. Safety training was also implemented, as was the formation of a safety panel.

Result

Because of these actions, both open claims were closed and the MOD dropped to .80, with a net result in savings of $60,000-$85,000. Since the new hiring procedures were put into place, the company now employees 26 workers.