Analysis of company's loss control perceptions of workers' compensation costs and outplacement services

Abstract

The purpose of this study was to survey the perceptions of a Environmental Health and Safety Engineer and a Human Resource person in regards to the increased costs of workers’ compensation and corporate downsizing, and the effects of outplacement services on overall costs. The goals of this study were to survey four different areas. The goals assisted in determining whether or not corporations should consider implementing outplacement services into their company as a loss control measure, and if they have, how effective have they been. The four goals of the study were: 1) To show a comparison of workers’ compensation costs and layoffs 2) Determine whether or not placement services have been beneficial to employers in times of layoffs 3) Determine the perceptions of management regarding workers’ compensation costs in relation to layoffs; and 4) To identify if the two manufacturing companies have implemented outplacement services and if they have how effective has that been as a loss control measure. A structured set of questions were constructed and asked of the interviewees. The questions that were asked of the interviewees were formulated based on issues and concepts that deal with the four goals of this study and were also based on the literature research that was conducted. Questions asked of the interviewees pertained to the following areas: the economy, workers’ compensation costs, workers’ compensation claims, loss control preventative measures, layoffs, employee morale, and outplacement services. The research completed indicated that employees who are laid off develop feelings of helplessness and anger: this was found to be true with companies ABC and XYZ. Both companies had similar perceptions as to why employees made claims around the time of layoffs.