The Stakes: An auto parts manufacturer with 170 employees saw their claims costs spiking. What had been a manageable 7% annual increase suddenly jumped to over 20%, threatening profitability.
The Investigation: The Advisor walked the factory floor and reviewed the safety minutes. They identified a cultural problem: employees were afraid to report safety violations (like missing safety glasses) for fear of retaliation. Additionally, the workforce’s general health was declining, leading to slower recovery times.
The Breakthrough: The Advisor implemented a “Safe Reporting” rule to eliminate the fear of retaliation. Simultaneously, they launched a wellness program to monitor blood pressure and obesity, addressing the root causes of the rising health costs.
The Result: New injury reports declined. The wellness initiatives reduced prescription costs by $20,000 and Workers’ Comp costs by $15,000.