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Media Contact Cameron Tew
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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: 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.

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