Over the last decade we have worked with many companies to help them reduce the cost of their labor. From one perspective or another we have helped these companies get ahead of their cost problem. More recently we worked with a company that has about 200 employees to reduce their workers’ compensation costs dramatically. Here is what we did for them.
This particular company is in the construction industry and has had some accidents on the job over the past few years. It got out of hand so much that their experience modifier went up to quite a high number for a company in their line of work. What this means is the carrier would take their manual rate and add a percentage to it because of their loss history. In addition to this the company was being charged a surcharge or what is known as a consent to rate in order to keep them on their books. To put it mildly when we met them their costs were out of control.
They asked us to come in and look at their costs so we conducted our platinum analysis that allowed us to gather the data we need to help them make an informed decision. After our analysis, we took their company to several PEOs and were able to find them a huge savings.
Their overall savings was north of $100,000.
To say the business owner was excited is an understatement. Having struggled for some time trying to lower his labor costs, he was finally able to get it under control.
In addition to this initial savings we were able to work together with the client and the PEO to put several risk management programs in place to help mitigate future risks. Because of these efforts we have been able to adjust their rates down most years depending on their experience.
They are now a happy client and able to reinvest money wasted before into growing their company in the future.