Almost all businesses have skeletons that haunt them. Many companies try to ignore them and lock the door with a false assumption that they can’t escape. Other companies don’t even bother to look to see if they have any. Is it the rate of turnover? Is it employee morale? How about an increased workers’ compensation (W/C) MOD rate that’s costing a fortune. Maybe it’s H.R. compliance. Whatever it is, it’s costing businesses time and money and/or increased risk.
In many cases, dealing with the skeletons doesn’t just reduce cost but increases productivity, resulting in increased revenue. This is important: The cost of removing the skeletons will more than likely be made up in the short-term by increased productivity. The long-term results are increased revenue and reduced risk.
As an example, I was instrumental in restructuring an organization’s staffing and scheduling plan, which did not add to the overall head count and saved them almost $2 million annually. Reducing turnover decreases the cost per hire while increasing the level of experience, providing greater efficiency. It has been proven time and time again that efficiencies improve with higher morale and employee satisfaction.
Reducing a W/C MOD rate takes time, but the sooner one starts the better.
Non-compliance is the skeleton of all skeletons and could result in unrecoverable costs, or costs that haunt businesses and affect the bottom line for years. The key is achieving compliance before receiving a visit from a government auditor.
Don’t wait until it’s too late — deal with the skeletons now.
Douglas R. Pepin is a business consultant and owner of Advise-HR LLC. He has more than 25 years managing business human resources departments. Learn more at advise-hr.com or 651-888-1113.