A recent NetSuite article for CFOs — titled "5 Unexpected (and Painless) Ways to Cut Expenses" — contained an interesting survey, as well as useful advice, on how companies can conserve cash.

In the Brainyard Summer 2020 Finance Priorities survey, 71% of the respondents cited "Identifying areas for savings" as a top priority. The author notes that reducing your spending is easier said than done because cuts can affect quality, growth, as well as employee and customer satisfaction. 

The article offers advice in several prime areas for cost reduction, including healthcare, shipping, high-cost contracts, and vendor payments.

But the one area we found most fascinating was under Workers' Compensation Insurance — especially this quote: 

"Workers’ comp insurance is a needed expense that has potential for reduction. Hammelburger says 75% of companies overpay for their workers’ compensation insurance."

Their advice was to work hard to prevent injuries from happening. The author mentions proactive measures such as hazard prevention, employee education, and safety programs, as well as post-injury return-to-work programs. 

The other quote that raised eyebrows was how much companies are overpaying from mistakes in the Worker's Comp class codes: 

"Workers’ compensation class codes, the three- to four-digit numerical codes assigned to employees to identify specific categories of work, are prone to error as well. Whether intentional or accidental, misclassification can result in overpayments or penalties, even lawsuits."

Read the full article here. 

If companies are truly looking to cut costs, an injury prevention solution that reduces the number of workplace incidents as well as one that triages minor injuries and helps avoid an unnecessary trip to the ER is the answer. 

Talk to Healthy Roster today to learn how you can cut expenses with our Virtual Injury Prevention platform.