If you're entering the U.S. market, ask any PEO company and they'll tell you that most companies are required to have a workers' compensation policy to cover the medical treatment and lost wages of employees that are injured in workplace accidents. In most states, workers' comp policies are obtained from private insurance companies but some states require that employers participate in a state run insurance pool. Workers' comp insurance premiums are calculated based upon a company's location, the type of work performed, and its safety record.
But workplace safety goes far beyond workers' comp insurance. Proactive risk management practices such as applicant screening, safety training, drug testing and proactive return-to-work policies can dramatically reduce the costs of treating injured employees. These efforts also improve employee moral and productivity.
International firms should strongly consider implementing a comprehensive risk management to reduce total workplace accident costs, which in addition to workers' comp premiums include the costs of lost productivity, litigation, employee turnover and training. A PEO company can provide a team of risk professionals to implement and manage such a comprehensive workplace safety initiative. When a PEO company takes the responsibility for workers' compensation, the company and the employee benefit from improved cash flow and low premiums.
Read on to learn more about recruiting qualified employees in the U.S. and how to manage them.