A new free online calculator shows how much money an employer can save by bringing back injured employees sooner with transitional-duty jobs.The return-to-work cost-savings calculator is available at www.reduceyourworkerscomp.com/tdc_calc.php.
The calculator is a quick, easy-to-use tool that shows management how much the transitional-duty program is saving the organization. It also calculates how much a particular lost-time claim costs the employer. The calculator is one of many free tools available on Workers Comp Kit®, a comprehensive Web-based cost-control program for employers of all sizes and types. Transitional-duty programs let injured employees become productive sooner by giving them real jobs to do while they heal. But setting up or maintaining a program can be a tough sell unless you can show senior management the bottom-line benefits, according to Rebecca Shafer, president of Amaxx, provider of Workers Comp Kit.
Dollar Saved = $10 Earned
The calculator shows how $1 saved can be equivalent to $10 earned, depending on profit margins. For example, XYZ Widget Company’s profit margin is 10 percent. If it can save $100,000 with a transitional-duty program, that’s equivalent to putting $1 million of new revenue on the books. A company with a 5 percent margin would benefit twice as much.
“These calculations are real eye-openers,” Shafer said. “Given a tough economy, organizations will find it difficult to grow their top lines. Saving on workers’ compensation through transitional duty and other proven strategies makes a big difference on the bottom line.”
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1 comment:
That sounds like a great tool. Never heard of it before but made for very interesting reading.
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