In hiring your first employee, you assumed potential risks and liabilities. These risks include lawsuits, employment-related disputes and compliance issues — just to name a few. Resolving these issues requires money and time, taking your focus away from growing your business.
In the last five years, six out of 10 employers faced employment lawsuits. The average trial compensation award for these cases was $218,000, and the average out of court settlement was $40,000. But the bad news for employers doesn’t stop there: Nearly 10 percent of these lawsuits resulted in an award of more than $1,000,000. It’s never been more important to keep your business safe.
Not having the right risk management measures in place can have disastrous financial consequences. To prepare for any possible situation, employers should hope for the best but plan for the worst. Here are two risk management solutions to consider:
OSHA compliance programs
As outlined in the Occupational Safety and Health Administration Act (OSHA), employers must provide a “safe and healthful” workplace. OSHA aims to secure a safe workplace by setting and enforcing regulations, and by providing training, education and assistance. As an employer, you have several OSHA-related responsibilities, and failure to comply with applicable standards can result in steep financial penalties.
Keeping track of and meeting these responsibilities by yourself is no easy task. But thankfully, there’s another option: Working with a Professional Employer Organization (PEO). A PEO is a trusted partner that fulfills key HR functions for its clients, such as keeping track of all OSHA compliance regulations and answering any questions you might have.
With OSHA’s quickly changing standards, there’s almost always a need to update employees on new or revised concepts. A PEO can provide you with the latest compliance and safety information as soon as it’s available.
A PEO’s risk and safety consultants can evaluate your facility, offer advice and provide a specialized safety program, freeing you to focus on growing your business.
Workers’ compensation and claims management
Workers’ compensation insurance provides wage replacement and medical benefits to employees who are injured on the job. In accepting these benefits, an employee forfeits the right to sue his or her employer in the event of a work-related injury. Depending on the state, employers may face significant penalties for a failing to keep coverage current.
By leveraging economies of scale, a PEO can offer small- and medium-sized businesses workers’ compensation insurance that would otherwise be available only to much larger organizations.
Handling workers’ compensation claims is a tedious, time-consuming task. And if handled improperly, the claims management process can create unwanted employee-employer strain. If you’re like most business owners, and you don’t have time to worry about workers’ compensation claims, consider hiring a PEO for help.
At Navigate, we offer a host of solutions, including risk mitigation services, outsourced human resources, payroll services, compliance assistance, and benefits design and administration. Each of our team members have over 20 years of experience in his or her specialized field.
In partnering with us, you gain access to a team of highly skilled individuals who act as an extension of your business. Our risk management team will partner with you to identify areas to improve upon and implement a strategic safety program. Together, we mitigate risk and address potential issues proactively.
The Navigate team is committed to seeing your business succeed by handling the HR and employee management tasks that distract you from growth. As your strategic partner, we help you mitigate risk and keep costs in line.
Interested in learning more about risk mitigation best practices? Please contact us at info@NavigatePEO.com.