Instead of keeping employees in the dark about how the Workers'Compensation system functions for fear of encouraging morefraudulent claims, organizations would likely be better offproactively enlisting their people in the cost-control crusade.

Indeed, employers who either overlook or purposely avoid thechance to collaborate with their front-line personnel on Workers'Comp risk management are missing out on some terrific opportunitiesto improve loss control, safety and return-to-work efforts.

That was the message I brought to attendees in a speech Idelivered and a panel I moderated on the subject at the Workers'Compensation Educational Conference, held Aug. 19-23 inOrlando.

Employers routinely work with insurance carriers, third-partyadministrators and health-care providers as well as their agentsand brokers to improve safety and loss control. Too often, however,a critical player is ignored—the employees for whom the comp systemwas created in the first place.

If you are skeptical, just think back to the last time youstarted a new job. Was Workers' Comp ever mentioned in yournew-employee orientation? Do you recall any discussion aboutWorkers' Comp in your employee manual? Did anyone from humanresources or your particular department ever explain to you whatyou're supposed to do if you are injured on the job? How about ifyou spot a hazardous condition in the workplace?

I'm sure you heard about health insurance, dental coverage, lifeinsurance, and perhaps even something about reimbursement for a gymmembership if the company has a wellness program in place. But Idoubt Workers' Comp was brought up because it's not usually groupedwith other standard “employee benefits.” Perhaps it's time for thatto change.

Most organizations handle Workers' Comp on a need-to-know basis,which means the vast majority of employees don't hear about itunless they are actually injured on the job. I would argue that allemployees need to know how the Workers' Comp system functions, andwhat workers can do to better protect themselves and theircolleagues.

Why the mystery about Workers' Comp? In speaking with riskmanagers and insurers, the explanation I hear most often is thatthe more employees know about Workers' Comp, the more likelythey'll be to try to game the system. Hearing about the possibilityof getting paid for not working—as well as how they could receiveexpensive medical treatment for non-work-related incidents withoutthe deductibles and co-payments of standard health insurance—wouldonly tempt more employees to file a fraudulent claim, thisreasoning goes.

I would suggest this attitude is counterproductive. The moreemployees know about Workers' Comp, the better off both they andtheir employers will be. The potential gains would likely faroutweigh any potential downsides.

The goal should be for employers and insurers to establish amore transparent system that makes workers part of the solution,rather than merely part of the problem. Better communication andcollaboration can make the difference.

A risk manager can start by incorporatinginformation about Workers' Comp into orientation materials,treating it like any other employee benefit. Explain in clearlanguage how to file a claim, how medical treatment andrehabilitation are handled, and what efforts will be made to returnthem to work.

Most importantly, urge everyone to alert management if they spota potentially hazardous working condition, following the exampleset by the U.S. Department of Homeland Security, which adviseseveryone: “If you see something, say something.” Includeinstructions on what to do if the reported hazard isn't addressedthrough a change in working conditions, procedures and/orequipment.

Consider offering additional incentives—such as a bonus, extrapaid days off and/or a public award ceremony—to encourage workersto bring management's attention to safety challenges and providesuggestions on how to address them.

Organizations worried about encouraging fraud can certainly betransparent about that concern as well. Communications aboutWorkers' Comp should include the potential consequences offraudulent activity, such as the possibility of termination or evencriminal prosecution.

What else can employers and insurers do to more proactivelyengage workers in the cost-control crusade?

• Do you have an app for that? Create a mobileapplication to at least give employees quick and easy access toinformation about the Workers' Comp process and provide anopportunity to file the first notice of loss right from theirmobile device. A more sophisticated app could allow claimants todocument accidents or hazardous conditions in pictures, videos andtext.

• Show and tell. Set up an intranet site orsend out an e-newsletter sharing success stories spotlightingemployees who reported safety hazards, or who returned to workafter an accident thanks to Workers' Comp-sponsored health care andrehabilitation.

• It takes a village. Create Workers' Compcommunities, both live (such as a safety council made up ofrotating members from management and the rank and file) and virtual(through internal social-media networks) to discuss ways to improvesafety, more effectively navigate the Workers' Comp system, and getpeople back to work.

• Who's minding the store? Consider taking alesson from the group health insurance industry by sending anExplanation of Benefits to comp claimants to secure their help inspotting provider fraud—as well as put them on notice that someoneis indeed monitoring their care.

• Walk the walk. Senior management can supportthis collaboration and emphasize its importance by being visible,whether by meeting with employees on safety, personally giving outawards to those who spot hazards, or by contacting those who areseverely injured to make sure they are receiving proper care. (I'veheard about one company CEO who visits any injured worker requiringhospitalization.)

Bottom line, by proactively involving employees in Workers' Comprisk management, rather than keeping them ignorant about thesystem, organizations and their insurers could upgrade safetysystems and improve loss experience while bolstering the morale andcamaraderie of their work force.

What other ideas might you have to improve transparency of theWorkers' Comp system, facilitate collaboration with employees, orprompt employers and insurers to be more proactive? Feel free toshare.