by David Schek | Jul 30, 2013 | Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
A few weeks ago one of my client’s employees was driving a fork lift and had an accident resulting in a potentially catastrophic injury and workers compensation claim. As my client began to research the claim, it appeared that the fork lift may have been improperly maintained and was in very poor working order. All of which was their clients responsibility. This situation may mean that the liability for the workers compensation accident, may be shared between the staffing company’s client and the insurer/ PEO for the staffing company.
This is a good example of Subrogation. The liability (and expense) associated with a workers compensation claim can be legally shared with another party– specifically the staffing company’s client.
Here is a link to an article that further explains how subrogation works, and why every staffing company should be aware of this when they speak to their insurance carriers and PEO’s about large work comp accidents.
http://www.athensadmin.com/athens-news/workers-compensation-subrogation/
Finally, please let me know if you need a FREE Workers Compensation quote. Contact us at www.StaffingCompSolutions.com
The workers compensation market is only getting worse for staffing companies with less than 150K in premium, and it is taking more time to find to an appropriate solution.
All the best
David Schek
President
Leaststaff.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
Visit Work Comp Staffing Solutions at Booth 104 at the A. S. A. Orlando Conference
by David Schek | Jul 23, 2013 | News, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
In study after study, employees with obesity issues are devouring their employers profits by being involved in more workers compensation claims. In fact they have higher workers compensation claim rates, spend more time getting back to work after an accident, and tend to be more affected by co-morbidity health issues. These facts are documented in multiple workers compensation studies from the NCCI as well as academic institutions and large workers compensation health agencies.
For example, in the article below, the author cites one example “where a worker weighing more than 300 pounds sprained an ankle. Even though he was in his mid-20s, the worker’s treatment dragged on for seven months without reaching maximum medical improvement, despite physical therapy and light-duty job.”
http://www.businessinsurance.com/article/99999999/NEWS080104/399999789?tags=|331|329|304|92
In addition the author follows up with an insightful observation that cases like this one involving an obese person “presents an additional challenge for workers comp managers because the longer an injured worker is away from the job, the greater risk they will “decondition” and gain additional weight, making it even harder to help them return to work, several sources said.”
Clearly this is a complicated health issue with wide scale implications for workers compensation costs– especially for light industrial staffing companies. Americans are becoming more obese with each passing year and light duty is often hard to cost effectively coordinate.
A more positive trend among light industrial staffing companies this year is the use of Professional Employer Organization (PEO’s) to help them decrease their use of expensive State Funds and eliminate the need to pay for internal administrative staff. This increased efficiency helps staffing companies focus more on the sales and servicing of their clients.
For a FREE PEO quote from a PEO broker with 25 years of staffing industry experience, and who has seasoned relationships with PEO’s that specialize in partnering with light industrial staffing companies, contact me at davidstaffing@gmail.com or visit us at www.StaffingCompSolutions.com
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Jul 18, 2013 | Consulting Services, News, Professional Employer Organization (PEO)
One of the unique features of the Work Comp Staffing Solutions management consulting service is that we invest our time to get to know your organization from the ground up. We apply our 25 years of staffing experience in order to develop appropriate and valuable sales and operation’s programs to improve your business.
Last week we spent 3 days in Arizona working with a multi office 8M staffing Work Comp Staffing Solutions consulting client. Our engagement with this client started about 2 months prior, as we spent many hours each week listening to the owner discuss his challenges and goals for his company.
Initially Work Comp Staffing Solutions helped this staffing company identify a workers compensation solution that included a PEO. Their longer terms and equally significant needs included increasing gross profits, inexpensively generating new sales and clients, and having an updated compensation program that encouraged optimum profitability in each branch. The owner, who is a very experienced staffing professional, wanted a “team of seasoned staffing professionals” to help him put together and execute a business plan to address his business needs.
Here is what Work Comp Staffing Solutions did for this consulting client:
- Created a comprehensive compensation program to improve branch efficiency
- Developed and managed a social media based sales and marketing program to generate new clients and sales opportunities for each office.
- Reviewed ALL client accounts to determine the appropriate mark ups, given the time that staff invested in servicing each account.
- Currently conducting weekly follow up meetings with ownership and review all aspects of financial performance.
We welcome a conversation about your staffing business needs and how we can help you achieve maximum profitability.
Here is a link to our consulting services https://StaffingCompSolutions.com/Work Comp Staffing Solutions-staffing-consulting-services/
We would be glad to offer a FREE 1 hour Consult about your staffing business!
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Jul 15, 2013 | Consulting Services, News, Professional Employer Organization (PEO), Workers Comp, Workers' Compensation Insurance
Staffing Industry Review recently published a very informative article about the current state of workers compensation for staffing companies. They reference several leading experts on their perceptions of where the workers compensation market is heading.
Here is a link to that article-
http://www.staffingindustry.com/Research-Publications/Publications/Staffing-Industry-Review/July-2013/Rising-Tide
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These authorities generally deal with larger staffing companies with sales over 10M and premiums above 200K. From my experience of working with start ups and smaller staffing agencies, the difficult market conditions will exist for a longer period of time since many of these smaller staffing companies are less profitable for these insurance companies or State Funds.
A solution that many smaller staffing companies are selecting is partnering with a Professional Employer Organization or PEO. These PEO’s are experiencing a stabilization in their rates. Because of their huge size, these PEO’s are afforded much lower workers compensation rates than a typical staffing company that may use the State Fund. As a result, the PEO’s pass some of these lower rates to their smaller staffing clients to make and keep them more competitive– like a good insurance partner.
Please feel free to contact me at davidstaffing@gmail.com to discuss how you can start utilizing a PEO partner to better manage your workers compensation costs. Also visit us at https://StaffingCompSolutions.com/Work Comp Staffing Solutions-staffing-consulting-services/ to find out about our other staffing support services.
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Jul 1, 2013 | Consulting Services, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
There are basically 2 schools of thought on this issue. The first school of experts suggest that some workers compensation costs will decrease over time since comp costs will be shifted to ACA plans for the millions of workers who are covered under these new health programs. Which would be great for most staffing companies. Conversely, another school of experts say that the ACA will swamp the existing medical facilities and resources from day 1, forcing workers compensation claimants to wait longer for their treatments (at hospitals and clinics) , resulting in increased workers compensation costs and higher indemnity claims.
This article below discusses these issues in more detail. It also looks at Massachusetts’s experience since 2006 where they have had a similar plan as the ACA, and now have some history as to how it has impacted workers compensating costs.
— http://www.aaos.org/news/aaosnow/nov12/advocacy2.asp
Work Comp Staffing Solutions speaks to many staffing company owners each week. This topic comes up in most of our conversations as more staffing companies sign up to partner with Professional Employer Organizations to help them manage these ever increasing payroll responsibilities and liabilities.
To find out what more staffing companies are doing to manage their new ACA responsibilities while trying to decrease their payroll burden costs, please contact me at davidstaffing@gmail.com or visit us at www.StaffingCompSolutions.com
Finally, be sure to ask us about how we can make your staffing company much more efficient and help grow your sales using Work Comp Staffing Solutions’s “hands on” Consulting Services. https://StaffingCompSolutions.com/Work Comp Staffing Solutions-staffing-consulting-services/
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
by David Schek | Jun 24, 2013 | Healthcare Insurance, Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance
Most staffing companies learned long ago that sending a workers compensation accident victim to the emergency room is probably the most expensive way to deal with the accident. The expenses generated from having an emergency room treat the employee, are bound to be very expensive– even for minor injuries. As a result, over the last 10-15 years, many staffing companies have wisely developed relationships with managed care providers that are located near their offices– believing that this was the best way to control their workers compensation costs.
Like with so many things in business (especially health care related), these relationships need to be managed carefully. This article explains how managed care companies are often over charging for many of their services, and that Third Party Administrators (TPA) that are supposed to be managing the managed care providers for the staffing companies, are not always doing their job properly.
http://www.businessinsurance.com/article/99999999/NEWS080110/399999535?tags=|331|92
This is another reason why working with a Professional Employer Organization (PEO) can help keep your workers compensation costs as low as possible. The PEO has specially trained staff to manage each accident situation, and make sure that the costs for treatment are reasonable- since the PEO is on the hook for these expenses too.
Please feel free to contact me at davidstaffing@gmail.com to discuss how you can start utilizing a PEO partner to better manage your workers compensation costs. Also visit us at www.StaffingCompSolutions.com to find out about our other staffing support services
All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association
