Manufacturers experience higher incidents of work-related injuries than other industries, even those with rigorous safety training programs and protocols in place. It is the nature of the industry. The work environment often involves heavy equipment, hazardous materials, and loud noises. Employees who perform repetitive tasks risk strained tendons and nerve injuries like carpal tunnel syndrome.
Workplace injuries, particularly those that require a significant recovery period, can hurt productivity, negatively impact employee morale, and undermine the trust that employees have in their EHS leader's ability to ensure a safe workplace. In 2024, over 11,000 lost-time claims were filed with the Ohio Bureau of Workers' Compensation (BWC), which paid out more than $3.3 million in wage loss alone.
Manufacturers can lower their BWC premiums by implementing back-to-work programs that effectively help injured employees return to their jobs as soon as they are medically able.
1. It Will Improve Your Experience Modifier
The Ohio BWC uses an experience modifier rate to adjust your base premiums so your cost reflects the expected future costs of your workers’ compensation claims. This rate is based on your claim history. If your business has had many costly claims, you will have an unfavorable rate that will increase your workers’ comp premiums. Conversely, employers with a history of fewer and less expensive claims will benefit from a favorable experience modifier, which means lower premiums.
To calculate premiums, the BWC uses a classification system established by the National Council on Compensation Insurance. More than 500 codes identify the type of work performed at a business. The BWC develops a premium rate for each classification based on the historical and expected losses of all businesses assigned the same classification. This rate, known as the base rate, is adjusted annually.
The base rate is used to calculate premiums for smaller employers who have limited loss experience, though less data makes it difficult to accurately forecast future losses. The base rate is then multiplied by a business’s experience modifier to determine premiums.
Larger employers are experience rated. The BWC will use the business’s historical data to forecast future losses and set premium rates based on these projections. A history of safety and fewer costly claims will translate into lower premiums.
For all Ohio employers, reducing claims and the total cost of claims will save money. This is where a return-to-work program will lower premiums. Getting workers back on the job quickly will slash claim costs by switching from combined medical and lost time claims to medical-only benefits. An added advantage of reducing lost time claims is that medical-only claims are easier to manage.
2. It Keeps Employees Engaged, Reducing the Risk of Disputes and Fraud
Of course, reducing the length of time that an injured employee collects lost work benefits will lower the overall cost of the claim, but factors beyond replacing wages can also inflate claim costs, thereby increasing premiums.
An injured employee who is out of work for a prolonged period may suffer from psychological trauma, loss of professional identity, and financial problems. Being out of work for weeks or months increases the risk that an employee will become disgruntled, bitter, or even angry and then blame the employer for their situation. This leaves open a greater possibility that an injured worker will pursue legal action. Claims complicated by litigation are expensive. Legal action will also tarnish the company’s brand and affect morale across the entire workforce.
Furthermore, an injured employee who is laid up for long periods can become disengaged and lose their sense of connectedness to the company. They may no longer identify themselves as part of the team or worse, be able to more easily rationalize fraudulent activity related to their workers’ comp claim.
Adopting a back-to-work program that keeps employees engaged and interacting with the company and coworkers, even if in a different capacity, can help prevent these issues.
3. It Retains Skilled Employees and Reduces Turnover
The longer an employee is out of commission, the more difficult it becomes to return to work. It can be a big transition: The returning employee must be brought up to speed with new procedures and policies that were put in place during their absence, and they may have lost skills and need training to regain their previous level of proficiency. A loss of skills also creates a less safe environment, increasing the risk of another injury.
Manufacturers may need to hire new workers to fill positions left vacant by injured employees. This increases injury risk as new employees are more likely to be injured. According to a 2024 Travelers Injury Impact Report, nearly a third of all manufacturing injuries were experienced by first-year workers. Retaining your skilled employees and helping them maintain their skills is one way that a back-to-work plan can reduce claims and lower premiums.
The framework for your back-to-work program should outline procedures that must be followed when an employee is on disability leave. It should include an organizational chart for the return-to-work team that defines the roles and responsibilities of all members.
The plan must describe how and when the injured employee will communicate with HR personnel, supervisors, and other workers during their recovery. Maintaining contact with your injured employee is critical to keeping up to date with their recovery progress, information that is essential for planning purposes. Communication is also vital for maintaining the employer-employee relationship, which can mitigate the psychological issues that can arise when a worker is cut off from their job.
Appointing a return-to-work coordinator will ensure that all parties involved in a claim—the injured worker, the HR department/third-party administrators that work with the Ohio BWC, the healthcare providers, and others—are kept updated on the injured employee’s needs and progress.
You must also develop plans for transitioning workers back to their jobs once they are medically able. This will include determining how certain duties can be modified to accommodate the injured employee’s capacity, identifying light-duty tasks that can keep the employee busy if they’ve not fully recovered, and alternative jobs that they can do before they fully return to work.
Compensation Solutions, Inc. (CSI) is an Ohio third-party administrator that can simplify case management and advise you about ways to take advantage of Ohio BWC premium reduction programs, such as the 10% bonus incentive for employers that have developed an approved transitional work plan for returning employees. Your CSI representative will provide personalized service and identify the premium reduction programs that your business can take advantage of, and they can also help develop plans for returning workers.
An effective return-to-work program will get your injured employees back on the job, reducing lost productivity, low morale, and workers’ compensation claims for lost time. Partnering with CSI will simplify the process of filing and managing claims and help your business reduce premium costs by taking advantage of Ohio BWC programs.
Workplace safety and workers’ compensation are closely linked. Ohio manufacturing businesses can reduce workers’ compensation claims and premium costs by prioritizing proactive EHS strategies and injury prevention. It’s time to bridge the gap between safety and savings. Protect your workforce and reduce your costs. Discover how CSI can help you lower your workers’ compensation expenses.