What Does Workers Comp Compliance Cost the Average Company?
The cost of doing business is evolving. Government rules and requirements are costing more and becoming a burden to small businesses. A survey report labeled high regulation costs as a significant reason that hinders the growth of small businesses, whereas large corporations enjoy the power of lobbying. However, regulatory requirements tend to vary depending on business and industry, and it is imperative to identify your worker’s compliance requirements.
According to Lori Murray, the workers’ compensation system is set up so that employees who get hurt at work or who suffer from occupational diseases and cannot work can obtain a livable wage while they recover. As a human resource manager, you ensure compliance with labor laws regarding your employee’s compensation packages. You may be required to train employees as a compliance and will need the help of a professional service. Whereas calculating the cost of your worker’s comp can be a headache, you can hire a professional service. With most entrepreneurs not aware of the regulations of compensation, the complexity of the rules does not make the situation better. But before you seek professional assistance, some factors will affect the compensation package for your business. They include the following:
The State of Your Business
Different countries have different rates of their compliance requirements. Depending on the location of the company, your employee compensation package is determined by the laws and rules of the state. The rates will tend to differ from country to country, but the calculation process of each state is similar and constant.
Risks Exposed to Employees
Each occupation in the workplace is assigned a risk classification. The level of risk in a profession is determined by the possibility and severity of an injury during the job. The higher the occupational hazard, the more the compensation package. This will mean the compliance rates will differ from industry to industry.
Type of Work
Is the work part-time or full-time? The kind of job and the number of working hours determine the rates based on employee’s duties. While in some states it’s the number of working hours, others learn the compensation rates with regards to the hourly wage rate. An essential point to research before reaching an estimated value is the job contract. Contracts tend to have clauses not covered under the law, and if not carefully considered, you may end up in trouble.
A Final Thought:
The bottom line is to ensure you meet the safety and skills requirements set by the firm. With laws being complicated, it would be advisable to hire the help of a professional expert. Additionally, professional services will offer HR solutions to determine a suitable compensation program for your business. In fact, it is making more and more sense to outsource many specialized positions in order to maximize firm value. This is exactly why we offer our Marketing Manager Service to help firms enjoy the benefits of specialized management without the cost of hiring or training marketing managers in-house.