The Impact of High Employee Morale on Workers Compensation Costs

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Workers' compensation costs can be an expensive business expense. Every time you add a new employee, you must factor in their insurance coverage which includes workers' compensation. While there are cost containment strategies you can implement to reduce them without sacrificing the fate of your company, one of the best workers compensation solutions is to make sure your workplace has high employee morale. Employee morale is important and impacts several factors including absenteeism, productivity, and turnover rates. 

There are many reasons why high employee morale is important. For one, it can reduce absenteeism in the workplace. When your employees feel valued and like they are part of the team, this can help them take care of themselves more responsibly. They will be more likely to take time off for appointments, sick days, and vacations. This can help reduce the number of work-related injuries if they are not feeling rushed and stressed to get back into the office.

Employees who feel valued at work are also more likely to be productive. Employees who have high morale have better motivation and are more inclined to refrain from doing shortcuts, follow safety measures, and focus on their performance thereby improving the quality of their work by reducing mistakes or errors. 

Here are five tips to improve employee morale in the workplace.

Hire employees who fit the job description.

Employees who clearly understand what is expected of them and are a good fit for the job are passionate and take pride in their work. Once you hire an employee, provide thorough training, and ask for feedback to determine if he or she is a good fit for the position.

Provide adequate equipment, resources, and support.

If there is anything an employee needs to do their job well, make sure they have it.  This includes everything from the right tools to a comfortable workspace. Provide adequate support, whether emotionally or practically, for employees who are struggling. 

Recognize achievements and celebrate successes. 

Your employees need to know you appreciate their work. Reward them for a job well done and make sure you celebrate success by taking time to recognize hard work, successes, or milestones achieved.

Demonstrate good character.

Lead effectively by demonstrating good character in the workplace. With this, you are setting the tone for the rest of your team to follow. Employees will be more likely to want to stay with you if they see that you are trustworthy and have integrity.

Be open to employee suggestions.

Provide avenues where employees can give feedback, voice any concerns or suggestions, and be open to them.  Listening to them will make them feel they are valued at work.

The bottom line

Maintaining high employee morale is a tool in reducing workers’ compensation costs and losses. If you’re struggling in reducing your workers’ comp costs, the wisest decision you can do is to partner with a workers compensation provider network that can provide expert workers compensation solutions. This includes, but is not limited to, medical management, assessments, training sessions, and cost containment programs.