Employers can dramatically reduce their workers' comp costs byavoiding seven key mistakes, according to a workers' comp expertwho provides free advice on the Internet.

Rebecca Shafer, an attorney and risk consultant specializing incost containment, is president of Amaxx Risk Solutions Inc., inMansfield Center, Conn. She offers her counsel with the practicalinsights of other top experts online atwww.reduceyourworkerscomp.com.

The site makes the following statements about seven mistakesthat drive up costs 20-to-50 percent:

1. Hiring unqualified employees. Many employers fail to makesure new hires are qualified to safely perform the job they werehired for.

2. Letting workers stay out longer than needed. If an employeeis healed on Jan. 15, he or she should be back to work January15–not Feb. 15 or June 15.

3. Having too many employees out of work too long. Employeesstay out of work when there are no post-injury procedures to bringthem back to work quickly.

4. Harmful economies. Some employers won't spend a few hundreddollars to send managers responsible for workers' comp toconferences and seminars where they could learn how to reduceworkers' comp costs and possibly save millions. Or, they look forthe least expensive claims administrator rather than the one thatwill provide the best quality claims handling.

5. Lack of understanding. Management doesn't understand the realcost of worker's comp. With a $15,000 claim, if the profit marginis 8 percent, it takes $187,500 to replace it on the bottom line.Management may not know they can direct medical care in thosestates where it is permissible. Lack of understanding by adjustersabout medical terminology can be costly. Injured employees maythink an insurance company is paying the claim completely, with noimpact on the employer.

6. Failure to communicate with injured employees. Attorneys,friends and other injured employees communicate with injuredemployees. Employers must make sure they get your messagefirst–starting before an injury even occurs.

7. Failure to monitor or coordinate medical care. No one ismaking sure a reasonable treatment plan is in place. For example,as long as any doctor says an employee cannot work, no one takesproactive steps to refute that position.

“Workers' compensation is not a fixed cost of doing business asmany CEOs, CFOs and business owners think. It is a controllableexpense,” said Ms. Shafer.