Companies strive to enhance productivity, reduce costs, and foster a positive workplace culture. Return-to-work (RTW) programs have become a key solution, offering significant benefits for both employees and organizations. This article will outline how effective RTW programs reduce overall workers’ compensation claims costs, giving companies more flexibility in supporting their injured workforce.
A Return-to-Work (RTW) program is a flexible initiative designed by employers to assist injured employees in reintegrating into the workplace. These programs can be tailored to accommodate various injuries or illnesses. This customization supports employee rehabilitation and maintains productivity during recovery.
Effective RTW Solutions Reduce Companies’ Claims Expenses
One of the most significant benefits of RTW programs is the substantial reduction in Workers’ Compensation costs. When injured employees take on modified duties, they often shorten the duration of their disability claims by returning to their work more quickly. This decrease in claim duration directly correlates with lower medical expenses and compensation payouts. According to a National Council on Compensation Insurance (NCCI) study, companies with effective RTW programs experience a notable reduction in Workers’ Compensation costs, leading to substantial financial savings. This reassures employers about the return on investment in implementing RTW programs. [1] For every dollar invested in the Transition2Work Program, the Return on Investment (ROI) is $16.07, considering the average savings in medical expenses and indemnity per claim.
Return-to-Work programs that can accommodate modified and light-duty transitional work financially benefit companies. Organizations can reduce indemnity payments for workers’ compensation claims by investing in modified-duty programs. Providing medical accommodations reduces indemnity by decreasing the likelihood of prolonged absences from work. [2] Modified duty minimizes the time off work for an injured employee, getting them back into the workforce more quickly and limiting payments for lost wages.
Cut Your Insurance Premiums
Cost savings can also come to an organization through a lowered experience modifier, which affects future workers’ compensation insurance premiums[3]. When return-to-work programs help an organization save money, the organization uses these savings to calculate a lower premium. A quicker resolution of a claim shortens the time needed to resolve it, ultimately benefiting the employer.
Additionally, modified-duty programs help reduce total medical costs and resolve a claim more quickly and efficiently for the injured worker and the employer. Reduced long-term disability for an injured employee helps save money for the organization and saves on “soft costs” for the organization, such as hiring costs. [4]
There are multiple cost-saving benefits for companies related to modified duty for injured employees. Modified duty assists with reducing lost time, decreasing the experience modifier, and lowering indemnity costs and medical expenses, among others. Implementing a RTW program is an easy way to take control of workers’ compensation costs for your company.
Transition2Work: A Partner for Your Companies RTW Needs
ReEmployAbility has been helping injured workers find modified and light-duty accommodations for over 20 years, making us an excellent resource for employers. With a network of over 48,000 Nonprofit Partners across the United States, we offer flexible accommodation options and are dedicated to promoting quicker returns to work and recovery. Let ReEmployAbility be your trusted partner in supporting your return-to-work initiatives!
Follow this series for further benefits of using RTW programs, like Transition2Work, to reduce workers’ compensation claims costs.
Contact us today to learn more about how ReEmployAbiltiy’s Transition2Work program can assist with your Return-to-Work needs.
Sources:
- Insights RTW Insurers Perspectives
- Modified Duty: A Win-Win for Injured Workers and Employers
- Experience Modification Rate (EMR) & Workers’ Comp
- Modified Duty/Return-to-Work Implementation FAQs
More Corporate Benefits Articles:
- PWFA: Find Accommodations for Your Pregnant Workforce
- Return-to-Work (RTW) Improves Employee Morale, Retention, and Productivity
- The Corporate Benefits of Return-to-Work (RTW) Programs
- Employees with Non-Occupational Injuries Supported with Transition2Work
- Return-to-Work Provides Reduced Turnover and Hiring Costs