Free Workers Comp Kit Calculator Shows Bottom Line Impact
Demonstrate to Senior Management how devastating the cost of workers' compensation can be to the bottom line. While they may see the premium dollars going out the door annually, they may not see the costs paid within the deductible, and they may not know what the full impact of these costs is. The Free Calculator in the Workers Comp Kit puts these costs into perspective.
For example, for one small claim of $25,000 for a company with a 5% profit margin, it takes $500,000 to replace that one claim on the bottom line. It takes a company with a total of $2 million annual incurred losses with a 5% profit margin $40 million dollars to replace the $2 million on the bottom line, for example. Determine your company's costs for free at www.ReduceYourWorkersComp.com/calculator.php
Now translate that number and put it into perspective by using an analogy that relates to your operation. For example, the sales from two operating units are spent on workers' comp. Or, if we reduced our workers' comp by 20%, we would increase our EBITA by X. Tie it to a common metric in your industry. For example, an airline would tie it to miles, a theme park would tie it to park visitors, a hospital would tie it to filled beds, etc. Put it in a slide and mark a big "X" over all the "beds" it takes to pay for workers' comp at your facility.
No matter what your product is, it is arguably easier to take charge of your workers' compensation costs than to sell an extra $40 million of product!
Make management aware of the "real" cost of workers' comp. Go to http://corner.advisen.com/wc for more information about Workers' Comp Tool Kit™ to reduce your workers' comp costs. The companies that use these tools report average workers' comp savings of 20% to 50%, and the bottom line impact can be seen immediately.
About Workers Compensation Tool Kit
The Workers Comp Kit is brought to you by Advisen's partnership with Becki Shafer and Amaxx Risk Solutions, Inc. These products help companies reduce workers' compensation costs by assessing key cost drivers, developing benchmark comparisons, and designing strategies to reduce workers' comp costs. Visit http://corner.advisen.com/wc or call +1.212.897.4800 for more details.
