Safety Wearables and the Workers Compensation Total Cost of Risk ROI
Workers Comp Claims cost and claim handling fees can rack up quickly. The SafeWork System makes employees healthier and delivers reduced Total Cost of Risk (TCOR) in the process.
The modern workplace is constantly changing and costs a lot of money to maintain. In today’s world – with increasing labor costs, reduced budgets, higher turnover, supply chain issues, productivity demands, the list goes on – it’s hard enough managing an effective risk management program, let alone mitigating these emerging issues.
When employees are injured on the job, it is no longer just the work comp claims cost that is a challenge; it is now the impact it has on staffing, productivity and employee engagement.
For years now the industry has made great strides in reducing workplace injuries through automation, ergonomic initiatives, nurse triage and litigation management. However, for more demanding, sophisticated clients the returns are often diminishing.
Increasing claims costs are just part of the equation. There are often overlooked costs of a work-related injury (the added cost of days lost, plus hiring and training a replacement are not covered by insurance). This means every bad bend, every back injury, every dangerously low shelf and so on, is costing you money.
Employee health should be a top priority — to not only protect everybody’s livelihoods, but your Total Cost of Risk as well.
How the SafeWork System Reduces TCOR and Drives ROI
StrongArm’s SafeWork System is designed with your TCOR goals in mind. The SafeWork System is an end-to-end risk management solution, combining state-of-the-art wearable technology, real-time data collection and robust data analytics to provide users and leaders with personalized actionable insights and intervention opportunities. Our unique data analytics capabilities deliver meaningful insights to ensure we continue to identify, mitigate and track areas of opportunity throughout the life of the program.
Data is at the core of everything we do and also provides you with benchmarking by industry, state, workers comp Class Code, and more — all powered by our actuarially validated algorithm that leverages over 300,000 data points collected each day from the thousands of Industrial Athletes on our platform.
At surface level, StrongArm’s safety solution is already cutting down on your workers comp costs. Once a customer is past the upfront costs, the SafeWork System is proven to deliver our clients an average TCOR ROI of 250%.
When looking at ROI from a safety perspective, it’s important to include both direct and indirect costs to fully understand the benefits. Safety sensors like those we develop at StrongArm have proven injury reduction rates averaging at 40%.
When compared to the $163.9B annual workplace injury cost, plus OSHA expenses, a 40% injury reduction could easily save the private sector over $65B annually if universally integrated, and that’s the conservative estimate.
To further prove the value-add, we are the only wearable company that is backed by the industry’s largest data set, 35 million hours of Industrial Athlete workplace movement data, and an Actuarial Study that shows we are reducing Workers Comp claims cost by as much as 35%.
The SafeWork System cuts down on all costs, transparent or hidden, surrounding injuries.
This is how StrongArm fits into your Workers Compensation Risk Management Program. As a ripple effect of these savings, claim fees, employee turnover and productivity costs are also cut down.