For Ohio employers, workers’ compensation is a significant and often unpredictable expense. While premiums are influenced by factors such as industry, payroll, and claims history, one of the most effective and controllable strategies for managing costs is investing in workplace safety programs. A strong safety culture not only protects employees but also directly impacts your bottom line through reduced claims, lower premiums, and eligibility for state-sponsored savings opportunities.
The Link Between Safety and Workers’ Compensation Costs
At its core, Ohio’s workers’ compensation system, administered by the Bureau of Workers’ Compensation (BWC), rewards employers who can maintain safer workplaces. Fewer injuries mean fewer claims, and fewer claims lead to a better experience modifier (EM), which is a critical driver in determining premium rates. Companies with poor safety records pay substantially higher costs, while those with effective prevention strategies can take advantage of group rating and group retrospective programs that generate significant savings.
Key Elements of an Effective Safety Program
Successful safety programs are more than compliance checklists. They embed safety into daily operations and decision-making. Key elements include:
- Leadership Commitment: Executives and managers set the tone by prioritizing safety as a business value.
- Employee Engagement: Workers who are trained, empowered, and encouraged to report hazards are more invested in maintaining safe environments.
- Ongoing Training: Regular training ensures employees understand safe practices, OSHA requirements, and company-specific protocols.
- Hazard Identification & Mitigation: Proactive assessments, audits, and corrective action reduce risks before accidents happen.
- Return-to-Work Programs: When injuries do occur, structured return-to-work strategies minimize lost time and lower claim costs.
Safety as a Strategic Investment in Ohio
The BWC offers a variety of programs and rebates to encourage employers to prioritize safety. From Safety Intervention Grants that help fund equipment to BWC safety councils that provide networking and training opportunities, employers have resources available to strengthen their programs while controlling costs. Participation in these initiatives not only enhances workplace safety but also signals to the BWC, and to your employees, that safety is a core organizational priority.
The Business Case for Safety
The return on investment for implementing and maintaining safety programs is clear:
- Lower premiums through improved experience modifiers.
- Eligibility for BWC savings programs, including group rating and group retrospective rating.
- Reduced indirect costs associated with injuries, such as overtime, retraining, lost productivity, and reputational harm.
- Improved employee morale and retention, as workers feel valued and protected.
In Ohio’s competitive business environment, companies that integrate safety into their culture are not only reducing risk but also gaining a cost advantage. By aligning operational practices with proven safety strategies, employers can better control workers’ compensation expenses while creating a healthier, more productive workforce.
Member Cost Saving Programs
Offering an extensive portfolio of money-saving programs for our members, when combined, Cincinnati Chamber member benefits can save you thousands of dollars a year on necessary business expenses. Learn how your Chamber membership can pay for itself by taking a look at our ChamberComp program.
ChamberComp®
Save up to 53% on your workers’ comp premiums through the ChamberComp® Program in partnership with Sheakley.
Greater Cincinnati Safety Council
The Greater Cincinnati Safety Council is one of the largest in the region and offers opportunities for reduced workers’ comp premiums via the Ohio Bureau of Workers’ Compensation.