Employers can dramatically reduce their workers' comp costs by avoiding seven key mistakes, according to a workers' comp expert who provides free advice on the Internet.

Rebecca Shafer, an attorney and risk consultant specializing in cost containment, is president of Amaxx Risk Solutions Inc., in Mansfield Center, Conn. She offers her counsel with the practical insights of other top experts online at www.reduceyourworkerscomp.com.

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

1. Hiring unqualified employees. Many employers fail to make sure new hires are qualified to safely perform the job they were hired for.

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

3. Having too many employees out of work too long. Employees stay out of work when there are no post-injury procedures to bring them back to work quickly.

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

5. Lack of understanding. Management doesn't understand the real cost of worker's comp. With a $15,000 claim, if the profit margin is 8 percent, it takes $187,500 to replace it on the bottom line. Management may not know they can direct medical care in those states where it is permissible. Lack of understanding by adjusters about medical terminology can be costly. Injured employees may think an insurance company is paying the claim completely, with no impact on the employer.

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

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

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

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Web Site Offers Comp Saving Advice

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