FOR IMMEDIATE RELEASE
Media Contact Cameron Tew
(919) 403-0251 ext. 246
HR Administration Excellence: Cost, Staffing & Structure of Workers' Compensation Programs
Chapel Hill, NC – April 26, 2005 – Workers’ compensation departments, like other employee service functions, are under pressure to reduce costs, set headcount targets during growth periods and predict appropriate resourcing levels. To accomplish workers’ compensation activities, 53% of benchmarked companies choose a combination of internal and external staff, according to a new study by benchmarking leader Best Practices, LLC.
The study, released April 2004, assesses the cost effectiveness and efficiency of complex workers’ compensation programs and provides a comprehensive look at staffing, structure and outsourcing trends in this area of Human Resources administration.
Excellence in Worker’s Compensation Program Administration is available with a complimentary study excerpt at: http://www.best-in-class.com/rr547.htm. The extensive study reveals structure, staffing, productivity and cost metrics some of which include:
· Top quartile companies handle 36% more claims per workers’ compensation Full-time Equivalent (102 claims per FTE) than companies at average (75 claims per FTE).
· Workers’ compensation program cost per supported employee are 45% lower at $29 for best performing companies compared to the benchmark average of $53; their program cost per claim is 65% lower at $458 than the benchmark average ($1,327).
· Over three quarters of benchmarked companies elect to be self-insured and almost all companies have unionized employees.
Other metrics featured in this study include:
- Annual number of claims per FTE (full-time equivalent)
- Number of employees supported per FTE
- Annual cost per workers’ compensation claim
- Breakdown of annual new and open claims
- Number of third party administrators/carriers overseen
- And more...
The insights presented in this study are drawn from an in-depth survey of industry leaders, including Bombardier Aerospace, Cisco Systems, ChevronTexaco, ConocoPhillips, DaimlerChrysler, DTE Energy, Lucent Technologies, Northrop Grumman, Raytheon, SBC Communications, U.S. Steel and The Boeing Company.