Return-to-work policies can be tricky, but they’re essential. Are you aware of how much your company loses when an employee misses work due to illness or injury? According to The Harvard Business Review, the average total cost of an employee absence is $500 per day, which adds up to $3,000 each week and $144,000 each year.
An effective return-to-work policy after injury is all about balancing safety, ethics, and productivity. From identifying hidden costs to updating your procedures, here’s what you need to know.
The Staggering Costs of Employee Absences
Studies show that the average cost per worker compensation claim is $25,000. However, some injuries and illnesses can cost even more. On top of lost wages, here are some other hidden costs employers should prepare to cover.
- Workers’ compensation insurance premiums
- Fees associated with administrative tasks
- Medical bills
- Overtime pay for employees who must cover an extra shift
- Recruiting commissions for temporary employees
- Legal fees
- Return to work bonus(es)
- Lost productivity
If you run a business, you know that every dollar counts. And, when you factor in the hidden costs of employees’ injuries, it’s easy to see how one injury can quickly become a financial disaster. According to the Bureau of Labor Statistics, worker compensation costs make up more than 10 percent of an employer’s payroll.
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Unfortunately, businesses often underestimate the costs because they add up slowly over time. Prevention is key. A carefully crafted return-to-work plan will help keep your bottom line in check. In many cases, adding remote work flexibility to your policy is a straightforward solution.
How Remote Work Options Can Save Money and Boost Productivity
Most businesses have a standard return-to-work policy to guide their injured or ill employees. But many don’t consider the potential benefits of implementing temporary remote work options. From giving workers the freedom to recover at home after an injury to reducing employee burnout and turnover after family leave, remote work options can lower the costs associated with injuries and protect your business from costly lawsuits.
For example, a study by the University of Michigan’s Ross School of Business found that employees who telecommuted after being out sick returned to work an average of four days earlier than those who did not. The study also found that telecommuting employees took three fewer sick days per year.
If you decide to update your policy to account for remote work, it could be the perfect time to rethink other aspects too. Here are some things to consider as you revise your return-to-work documents.
4 Tips for Revamping Your Return-to-Work Policy
A well-crafted return-to-work policy can help you avoid costly lawsuits and protect you from discrimination claims by providing clear guidelines for your managers. These policies also provide a framework for dealing with an employee’s return after an extended period of leave, which may include an injury, medical condition, maternity leave, or parental leave.
As you consider the best ways to revamp your company’s return-to-work policy, here are a few things to keep in mind.
- Make sure your employees are clear on the terms of return to work after leave.
- Keep track of the frequency and duration of long leaves taken by employees.
- Clarify who will be responsible for preparing documentation regarding an employee’s condition upon returning to work.
- In your employee handbook, provide specific directions on how employees should inform you of time off needed for illness or injury.
Do You Need Help Revising Your Return-to-Work Policy?
When you create a way to provide the best care for your employees, you’re not just protecting them—you’re also protecting their right to work, your company’s bottom line, and your business’ reputation. So, if you haven’t updated your return-to-work policy in several years, now’s the time.