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Germ of Its Own Destruction

I recently read an article mentioning a theory that every species has contained within it a "germ of its own destruction." In other words, it can be destroyed by its own doing versus an outside force.

It got me thinking about workers’ comp. The workers’ comp system, we all know, is a system wrought with many conflicts. It is not a profession for the weak-kneed for sure.

What kinds of things are built into the system that, if unchecked, could render it unworkable? Some would argue, "Where do I start?"

The original purpose of workers’ comp was to protect the worker if injured and to also protect the employer by containing exposure. This "compensation bargain" has built into it the debate of what is fair compensation. It is a real trick coming up with the win/win on this one.

If the right balance is not struck, the system does not work: if employees are not compensated enough the system would cease to exist and employees would eventually seek compensation through other options. Conversely, it has been reported that workers’ comp costs in some companies rank second only to payroll as a top expense. In today’s economy slashing these costs is no longer a luxury but a top-tiered priority.

 What many kindhearted humanitarians don’t consider are the social ramifications of over-compensating. Most want to care for the hurt, injured, ill and those in need. It is part of our nature. However, when this willingness to help extends too far, the actual results become the contrary. The good deed becomes injurious and harmful.

The concept of honest work for reward goes beyond economics. Some would say it is the basis of self-esteem. Accomplishing things, particularly if they are very challenging, is good for the soul.

 
Do you know the root problem of the criminal mind is lack of self-respect? If you look at the bottom line of the criminal act one realizes they got something (your car, TV, life savings, etc.) and exchanged nothing for it in return. This is "over-compensating" to the ultimate degree, isn’t it?

When I hear of people filing workers’ comp claims two weeks before they retire because it will pay them more money, I actually feel sorry for them. They may think they are getting away with something and sometimes cleverly justify their actions. But at some level, they know they are getting something not completely deserved. It affects one’s self-esteem gravely, admitted or not.

To balance this discussion it can work the other way, too. If someone has a legitimate back claim and, due to a jaundiced perspective as a result of paying one too many dubious employee claims, the employee is denied due compensation. This, too, is unjust.

 
If you bumped up what you spent on preventing claims to just 6% of what you spent on workers’ comp, your costs will drop by over 50%.

One of our large warehousing clients did that and saw their workers’ comp drop from $1.2 million to $80,000. The ROI is off the charts.

The real benefit is you get to avoid all the post-claim complexities and conflicts.

You win, employers win, and the biggest winners are your good employees who will never feel that lightning bolt of back pain that alters their lives forever.

Invest 6% to save at least 50% and have happier employees. Now that is a good exchange!

The "germ of its own destruction" with regards to workers’ comp is the claim itself. If they become too plentiful or too expensive, the system fails. F.I.T. helps organizations attack the source of high workers’ comp costs. We make claims disappear!

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