The Role of Workers Compensation Insurance in Employee Retention

Young Hispanic worker in small warehouse smiling, happy to have workers comp benefits.

What if a single decision could make your business and its employees safer? 

Workers compensation insurance allows you to financially provide for workers who get injured on the job. This keeps employees happy and mitigates the odds of them taking you to court over an injury. However, what far too many entrepreneurs do not realize is that it can protect your company in other ways as well. 

Specifically, workers comp can seriously boost employee retention. How does this work, and how can it help your business succeed? Below, you will find all the information you need. 

Why Retention Matters in Today’s Workforce 

As an entrepreneur, employee retention should be one of your highest priorities, especially if you are a new business owner wondering about commercial insurance. A high turnover rate can be very expensive for your company and have a negative effect on the performance of the business as a whole. Left unchecked, high turnover rates will make it increasingly difficult to operate, which can hurt your bottom line and cause lasting damage to your reputation. 

As you can tell, retention is a vital goal for any business. And the importance of such retention is tied to the importance of workers compensation and other benefits. Below, you will find out more about why that is and why this coverage should be part of your small business insurance

The Key Role of Benefits in Employee Retention 

A recent survey in “Business Leadership Today” discovered that 66% of employees are reviewing offered benefits before deciding whether to remain in a current job or look for a new one. Workers comp is one such benefit, and a good program may make the difference in whether your best employees stay or start looking around for better benefits. 

Workers Comp as a Retention Tool 

Obviously, many employees would prefer benefits like better pay and more vacation days. Compared to that, having good workers compensation insurance may not seem that important. 

In reality, such a policy is vital to the retention of your hardest-working employees. Such policies establish security and trust while safeguarding the health and safety of your workers. 

Two smiling female workers in clothing shop, happy to have workers comp benefits.

Security and Trust: The Foundation of Loyalty 

Getting reliable workers compensation insurance signals that you are heavily invested in the safety of your employees. This fosters goodwill among current staff and helps you hire better talent, all while cultivating a powerful foundation of loyalty. 

Health and Safety Concerns Addressed Through Workers Comp 

Getting workers compensation insurance can help with both short-term and long-term health and safety. For example, it is reassuring for employees to know they will be financially covered in the event of a slip-and-fall accident or even things like carpal tunnel syndrome (make sure you brush up on what workers compensation covers). Workers comp allows those employees to obtain needed medical care, which also helps prevent untreated injuries from turning into anxiety or depression that will further impact their state of mind and workplace performance. 

Going Beyond Compliance: Strategic Approaches to Workers Comp 

Most businesses of a certain size are required to get workers compensation insurance. However, not all businesses with this protection are created equal. 

If you really want to get the most out of this coverage, it is important to be strategic. That means creating a safety-conscious workplace culture, establishing an effective return-to-work program, and being completely transparent about your policies. 

Building a Corporate Culture Around Safety and Protection 

No employee wants to be injured, and no employer wants to pay out for preventable injuries. To keep everyone happy, it is important to institute workplace safety programs that encourage accountability and protection. Remember: a safer culture means fewer accidents and injuries. 

Establishing an Effective Return to Work Program 

You must have a solid return-to-work program for employees coming back after getting injured. Make sure you have a formal written program that documents how and when to report claims and who reports to whom. Combined with the aforementioned culture of safety, this will keep your business running smoothly. 

Creating Transparency Around Workers Comp Policies 

Finally, make sure there is no confusion among your team about any aspects of workers comp. This is meant to be a benefit that incentivizes workers to stick with an employer who cares about their safety. If employees are too confused to take advantage of this program, then it will not have the desired effect of retaining your top talent. 

Start Offering Workers Comp for Your Employees With InsureOne 

Now you know about the importance of workers compensation. You know more about what it covers, why workers love it, and how it helps prevent that dreaded turnover. But do you know where you can find the best compensation coverage from the best carrier? 

At InsureOne, we are just as devoted to your business as you are. Ready to work together to give your company the protection it deserves? If so, come get a quote online. Of course, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you