Boosting Productivity? Outsourcing Workers’ Compensation

The Telstra Productivity Indicator released in March 2012 shows productivity is the priority for 80 percent of the private sector and 66 percent of government organisations. Brinsden notes that this is the highest proportion since the annual survey in 2009.

Brinsden’s article discusses the negative connotations of the use of the work ‘productivity’ as it is often associated with cost cutting, but it is not about that. Productivity is about getting it right the first time. At WCD we believe it is about having the right intellect and resources focused on the end point objective and taking the most effective path to get there via effective project management.

Having worked in consultancy in recent years I am always speaking to employers about the cost effectiveness of flexible deployment of resources and having people and systems that are cost effective, particularly in the management of workers compensation claims. We have proven that outsourcing claims management functions increases the productivity of business line managers and those in related functions as they are not paper shuffling or spending hours trying to resolve side issues associated with claims. They can focus on the business at hand.

Into the future leaders in the private sector believe they will increase revenue and market share and those in the public sector believe they will better able to manage risk and achieve organisational objectives. The survey of 700 senior leaders found there was a 25 percent drop in those achieving significant productivity improvements compared to a year earlier.

The challenges of increasing productivity are different for different sectors:

  • in mining and resources it is about the need to be flexible in a global marketplace
  • in banks it is a short term focus on the cost of accessing funds
  • for manufacturers and retailers it is about the challenge of increased global imports and a higher Australian Dollar making it harder to compete in export markets

The outsourcing of Workers’ Compensation Claims Management enables a business to focus on productivity improvements and is self funding. Consider a review of your Premium and examine what productivity improvements could be achieved through outsourcing your Workers’ Compensation Management.