How BSCs Can Mitigate Workers' Compensation Costs

From rental rates and visits to the grocery store, to employee salaries and product inventory, prices seem to have skyrocketed in recent years. The cost of workers' compensation claims, unfortunately, is no different. 

Cleaning professionals have some speculations as to the reason for this recent rise.  

“I think it's twofold. The insurance market in general has skyrocketed — whether it's workers' comp, general liability, auto — everything has gone up. Part of that is probably through COVID-19 and states allowing a lot of insurance claims,” hypothesizes Scott Weintraub, vice president of SMG Corporate Services, Shelton, Connecticut. “The second reason is the general inflation that we're seeing in the economy.” 

Regardless of the reason, these cost increases don’t appear to be going away anytime soon. That puts the onus on building service contractors (BSCs) to navigate the challenges.  

The good news is, there are several key strategies BSCs can implement to mitigate the financial and time loss of workers' compensation claims. By having the right tools in place — optimized inspection and training protocols— many of those potential claims and the injuries that led to them can be prevented in the first place.  

Preparation Cuts Claims

While the most common incidents that lead to potential workers' compensation claims are trips and falls, back injuries from improper lifting technique, or repetitive motion-induced injuries, BSCs with the best preventative training programs account for all sorts of potential incidents — not just the typical culprits. To get an idea of what types of threats to look out for, Claudia St. John, president of Affinity HR Group, Jamesville, New York, recommends BSCs look to organizations who host collaborative programs on safety training.  

Programs such as Building Service Contractors Association International’s (BSCAI) Safety Award program keep BSCs up to date with the latest expectations for preventative programs and provide avenues for businesses to collaborate and share best practices. BSCs can also get recognition for having clean safety records and minimal injuries being sustained in the workplace, she notes — providing the tandem benefit of a credential to leverage with facility customers and fewer compensation claims to worry about.  

While some standards — such as equipment operation or properly lifting trash bags — can be universal, BSCs who operate in multiple types of facilities must remember that no cookie-cutter approach can be implemented. In addition to safety programs, BSCs are encouraged to utilize on-site guidance recommendations from manufacturers or the Occupational Health and Safety Administration (OSHA) to understand how to optimize equipment usage and implement the healthiest cleaning procedures on each unique facility/room. 

“Most of the BSC's that we work with have somebody with specific expertise in OSHA standards. From there, they combine that knowledge with the facility type in question and modify the training accordingly,” says St. John. “Once a framework is in place, it’s equally as important to observe employees while they're working to make sure the provided training is actually being adopted and implemented in a way that that's keeping them safe.” 

Weintraub agrees, adding that insurance companies will also offer to conduct audits — often for free — and analyze cleaning practices. It’s particularly valuable because even if a BSC is technically going about a process adequately, there may be an improvement they aren’t even aware of. 

“Our insurance representatives visit every year, and they go to sites with us. We show them what we're doing, and they make safety suggestions that are in everyone’s best interest,” says Weintraub. “They’ll do safety assessments, look at your ergonomics, and even your safety manual and say, ‘Hey, this is great, but you really should be doing this instead.’ It’s a service that most people don’t take advantage of when they should.” 

These audits have helped SMG make seemingly small adjustments; things that over the course of a year lead to significantly fewer injuries and claims. Specifics include longer-stretch toilet brushes that reduce the need for arm strain and bending when cleaning restrooms, trash pickers that ease the strain on the back, and suction slots for can liners that reduce the strain when removing them from the bins. Ultimately, however, Weintraub adds that training on new equipment upgrades is equally paramount to the features themselves.   

“Some of these equipment upgrades are more expensive up front, but in the long run it's saving you money,” he emphasizes. “Another example is a backpack vacuum. A big component is training frontline workers on how to wear the equipment correctly, making sure it's locked in tight. If you have workers with physical limitations, you can't discriminate, but maybe you try to find them less heavy-duty roles.” 

When it comes to determining which safety protocols should be emphasized, Weintraub believes it’s pivotal to study the data of workers' compensation claims, as it can reveal alarming trends. SMG conducts a quarterly analysis with their insurance company to review any claims that have had an abnormal spike in case rates — and then dissect how the training can be improved as a result.  

Julianna Huck, human resources director for ESS Clean, Urbana, Illinois, takes the same approach when it comes to pivoting priorities for training when needed. This was the case when a jump in safety issues was recorded in the parking lots of one of their facilities. 

“I met with all the area managers for an hour, retraining the trainers so that we can make sure they know exactly what to talk to their employees about,” she says. “It’s all about safety, with questions ranging from ‘Are the lights in the parking lot on?’ to ‘Is it well-enough lit so custodians feel comfortable and safe when they take the trash out?’ It comes down to knowing that customer enough to pinpoint what the potential issues and solutions could be.” 

Training methods come in various mediums and frequencies; Huck adds. ESS sends out a safety newsletter four times per year as one of its reinforcement techniques — aiming to remind employees of critical steps of procedures that can reduce injuries. Additionally, specific topics are presented in ways that break the mold from a conventional “watch-and-learn, then try yourself” training sessions.  

“We make it fun — there's contests, games and prizes for participation, along with bonuses for managers if they hit a certain number of employees participating,” Huck says. “Ultimately, it’s information they need to review once a year, but then they complete the quiz, so we know we updated everybody. When you've got almost 500 people, that's a project.” 

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Case Management Key to Minimizing Workers Comp Costs