Even the best-run companies are susceptible to employment-related risks and lawsuits. Especially in recent years, employers face an increasingly treacherous legal environment. With many such lawsuits prominent in the media, you’ve probably recognized the need to take effective, proactive steps to reduce your employment risks.
Here are five suggestions to get you started:
- Take a systems approach.
Controlling risk comes down to the right systems and recordkeeping. If you establish standard operating procedures around critical tasks, this will allow you to onboard employees more quickly and ensure they receive proper training. Employees introduce potential risk into a business every time they interact with a customer or handle a product.
- Adding risk analysis into all your business systems helps build awareness and gets everyone thinking of how to minimize those risks.
- Keeping accurate records completes the feedback loop and enables you to tell whether your attempts to reduce risk are working.
- Consider purchasing employment practices liability insurance (EPLI).
EPLI protects you against potential liability losses in areas such as sexual harassment, discrimination and wrongful termination.
- EPLI can protect your business from the risk of heavy financial loss from employment claims. But it’s not a silver bullet. Learn the pros and cons of EPLI for your company.
- Cross train.
Having sufficient insurance is a good first step, but taking steps to cross train is another way to avoid risk. A robust plan includes having two employees available who can perform any given job. Then, if Employee A resigns unexpectedly, Employee B can step in without performance suffering.
- If having double coverage is not feasible, another alternative is to have a weekly staff meeting to keep everyone up to date on current tasks and priorities.
- Educate your employees about workplace safety.
Workplace injuries can result in exorbitant medical and workers’ compensation costs, as well as lost productivity. They also can grossly inflate business insurance premiums.
- Never shirk on your safety training commitment. Don’t allow this month’s ticket – or any other excuse – to stand in the way of safety ranking number one on your company priority list. Strive every single day for a zero-incident culture and track record.
- Partner with the right PEO.
A Professional Employer Organization (PEO) can help you to meet and simplify your risk concerns. Their contact should provide you with experienced, trained professionals and comprehensive risk management services. Look for a PEO with:
- A stable financial history. Are their benefit plans properly funded and backed by a reputable insurance company?
- A proven track record. How long has the PEO been in business? Ask for references – and use them to your benefit.
- Employer Service Assurance Corporation (ESAC) accreditation. ESAC is an independent body that is nationally recognized for its monitoring of professional responsibility standards and financial benchmarks in the PEO industry.
Find out what Lyons HR can do for your business!
Lyons HR is an ESAC-accredited PEO offering A-to-Z risk management services including workers’ compensation coverage, safety training, OSHA reporting and assistance, claims management, accident and fraud investigation, and worksite liability assessments. Contact us today to learn more about how we can help you alleviate your employment risk concerns.