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If your payroll is greater than $5m, you should be asking yourselves the following questions.

Q1. Do you have a uniform process for WorkCover and non-WorkCover cases?

What is a uniform process & When should I use it?

A uniform process includes a number of proven steps that are supported from top down in your organisation. These steps include independent assessments of the workers’ capacity and their duties, and the development of industry best return to work plans (used for WorkCover claims) or care plans (used for non-WorkCover cases).

This will provide you a robust process to support workers with WorkCover injuries and promptly resolve their claims. Workers are offered sustainable and supportive return to work plans.

Line managers are the eyes and ears of an organisation and are in the best position to identify early warning signs with regard to the health of their workers. The uniform process is used to support workers with early warning signs, enhance their wellbeing and support them to stay at work in a productive capacity.

The same uniform step by step process should be used each and every time you identify a WorkCover or non-WorkCover matter.

Why do I need one, what are the benefits?

By providing a uniform process, you are able to follow the same proven process each and every time there is a WorkCover or non-WorkCover case. This helps to keep everyone on the same path and reduces the need to react to factors that may not be in the best interest of the workers. A uniform process is independent of legislation and allows the same steps to be actioned across all your locations, anywhere in Australia.

Executives, human resource managers, return to work coordinators and line managers all support the same process and everyone is aware of their obligations and has the tools necessary to support their workers and take action from day 1! This removes the need to wait for your WorkCover insurer to act, and instead allows you to support your workers while the insurer processes the liability of a new WorkCover claim. The worker remains engaged and the return to work process is more sustainable and effective.

How does P2 Group help?

The P2 Group unique methodology has successfully been used by employers to provide a uniform process. Through our unique methodology, we can provide occupational health services directly to you to meet your outcomes, instead of traditional services through your insurer that increase your insurance costs and meet your insurer’s outcomes.

Our occupational therapists meet with your workers at the workers’ normal place of work and conduct functional capacity evaluations for physical conditions or initial needs assessments for mental health conditions. These assessments identify the workers’ capacity for work. Our occupational therapists passionately believe all workers have capacity and we owe it to these workers to help them return to work and re-engage with life. Our occupational therapists will also conduct worksite assessments to ensure the identified capacity is aligned with their duties. Our occupational therapists will consult with the workers’ treating practitioners on your behalf and document return to work plans with you.

Since 2003, we have worked with great business leaders who have taken control of their WorkCover by using our proven uniform process.

Q2. What is your premiuim to payroll rate?

Why do I need to know this?

Many employers are not aware if their WorkCover insurance premium is high or on a par with their industry. Your premium to payroll rate is the only true measure of your WorkCover costs and performance against industry. The premium to payroll rate shows, as a percentage, what you are spending on WorkCover in relation to you remuneration (payroll). The remuneration of a growing business will increase, but the premium to payroll rate should not increase.

Reducing your premium to payroll rate can provide your organisation with a competitive advantage. Savings from premium reductions can be used to meet operational needs, OHS initiatives and training & support for managers to aid staff welfare through proven early intervention processes.

What should it be?

This depends on the size of your remuneration. Typically, the larger your remuneration, the lower your premium to payroll should be. For example,

  • If your remuneration is $5M, you should aim to be slightly less than your industry rate.
  • If your remuneration is $25M, you should aim to be half your industry rate.
  • If your remuneration is larger, you should aim to be a third of your industry rate.

If your premium to payroll rate is less than your industry rate, it demonstrates that your organisation is spending less on WorkCover costs per person than most other comparable organisations in your industry.

If this is not the case, there are opportunities to introduce new strategies, procedures and training to help reduce your premium and save you money. P2 Group can help you achieve this.

How is it calculated?

Your rate can be found (for example) on your Victorian premium notice from your insurer, usually on page 3 under “Notice of Adjusted Premium”.
It is calculated using two figures from your premium notice –

  • Your WorkCover premium  – eg $1,100,000 (A)
  • Your remuneration  – eg $23,000,000 (B)

Divide your WorkCover premium by your remuneration and multiply by 100 (A/B*100)

eg. ($1,100,000 / $23,000,000) * 100 = 4.78%).

Your premium to payroll rate is 4.78% and should be lower than your industry rate, if it is not please contact P2 Group.

How does P2 help?

P2 Group provides training to your line managers and return to work coordinators to implement proven early intervention strategies to prevent new WorkCover claims, strategically manage existing WorkCover claims and reduce your premium to payroll rate.

The P2 Group unique methodology has successfully been used by employers since 2003 to reduce premium to payroll rates. Through our unique methodology, we can provide occupational health services directly to you at a direct cost, instead of traditional services through your insurer that increase your claims costs and premium over 3 years. Engaging P2 Group typically is 1/10th the cost of engaging similar services through your insurer.

This provides you better control and significant reductions in your premium to payroll rate.

Q3. Do your line managers focus on the health of their workers?

Why should they?

Line managers are the eyes and ears of your organisation and are in the best position to identify early warning signs regarding the health of their team. Line managers have legal obligations to monitor the health of their workers and implement strategies to support their workers when they know or ought reasonably to have known of the workers’ physical and mental health conditions.

Line managers should be involved in both WorkCover and non-WorkCover cases relating to their workers. Line manager can identify early warning signs and implement early intervention strategies to assist workers’ health and minimise the need for complex WorkCover claims.

If WorkCover claims are lodged for serious injuries, line managers can remain involved in the return to work process by liaising with our occupational therapists to understand what capacity the workers have and help identify meaningful suitable duties that keep the workers motivated and productive. Line managers working with the support of the return to work coordinator can achieve sustainable and effective return to work outcomes.

What are the benefits?

One of the key benefits when line managers focus on the health of their workers is the increase in communication between line managers and the workers. Over time workers feel comfortable discussing their health conditions, which allow line managers an opportunity to implement strategies and support their workers.

Identifying early warning signs and implement early intervention strategies achieves the following outcomes:

  • Workers’ well being is enhanced
  • Productivity is increased
  • Lost time injuries are reduced
  • The need for complex and costly WorkCover claims is minimised.

Lost time injuries, which is a lag indicator, is a key measurement reported to most organisations’ executive teams. Consider reporting the number of early intervention cases actioned and the potential WorkCover insurance premium blocked, which are seen as lead indicators. Set an 80% key performance indicator for your early intervention cases to not become WorkCover claims.

Productivity is increased when workers with organisational knowledge are encouraged to stay at work and support their team. And the need to recruit casuals to fill gaps when workers are off work reduces.

If WorkCover claims are lodged for serious injuries, line managers working with the support of the return to work coordinator can achieve sustainable and effective return to work outcomes.

Q4. Do you know how many active WorkCover Claims you have?

Why do I need to know?

Organisations typically know the number of open and closed claims they have, but rarely know if any of the closed claims are still active. In Victoria (for example) closed claims can continue to attract statistical case estimates (SCE), which directly influence your WorkCover premium costs. SCE’s are individual estimates of the future costs associated to your WorkCover claims.

Updated claims data from your insurer should include actual costs, estimate costs and the attributes driving the estimates. This information provides organisation the opportunity to direct their efforts on the high costing active claims. P2 Group can offer independent strategic advice to resolve these WorkCover claims, change their status to inactive, reduce the estimate costs and in turn reduce the premium costs.

What influences estimate costs?

Estimate costs are typically recalculated each month by either the insurer or the WorkCover Authority. A number of attributes drive the estimate costs, some of which are actual medical costs to date, actual legal costs to date, actual occupational rehabilitation costs to date and actual weekly compensation costs to date. Strategies can be implemented to successfully reduce estimate costs.

How can P2 Group help me reduce the estimates and number of active claims?

P2 Group provides industry best claims costs analysis which looks at the key drivers influencing high claims costs. Strategies are then implemented to reduce the estimate costs of current claims and reduce the number of active claims.

P2 Group early intervention strategies offer organisations the opportunity to move fast and support workers with early warning signs. Early intervention minimises the number of active claims an organisation has int eh future.

P2 Group’s goal is to help organisation proactively support the needs of their workers and have zero active WorkCover Claims.

Q5. Do you have the Inherent Requirements of Jobs (IROJ) documented?

What is an IROJ?

The inherent requirements of jobs (IROJ) relate to the physical and mental demands required to conduct the jobs at an organisation. The IROJ should be documented for each key job and must include the main tasks of the job, the physical demands of the job, the frequency of each task, the duration of each task, the cognitive and behavioural demands of the job and the environmental factors required to conduct the job.

The inherent requirements of a job is not the same as the job description. Most organisations have job descriptions well documented, including key performance indicators relating to workers’ performance and their code of conduct. However, the inherent requirements is a separate document that most organisations do NOT have documented correctly.

What is an IROJ used for?

The IROJ document is used during recruitment, return to work planning and managing the reality of an ageing workforce.

For use in pre-placement assessments:
The IROJ document is used in conjunction with a pre-employment functional assessment to identify a potential candidate’s physical and psychological ability to meet the inherent requirements of their prospective role within an organisation.

The IROJ is a pre-requisite to ensure the work demands are appropriately matched to the candidate, so they are not exposed to duties that are beyond their physical and psychological ability.

For use in managing injured workers and gauging when they can return to pre-injury duties:
The IROJ document is used in conjunction with a functional capacity evaluation (for physical injuries) or an initial needs assessment (for mental health injuries) to identify a worker’s ability to meet the inherent requirements of their job. A return to work plan can be implemented to record how well the worker is recovering and when they are likely to meet the inherent requirements of their pre-injury duties.

For use in managing an ageing workforce:
Workers have obligations to take care for their health and safety. Employers have obligations to monitor the health of their workers. Unfortunately, most employers have the same output and production expectations of their workers, whether the person is 40, 50 or 60 years of age. Care plans provide Workers the right supports to ensure they remain safe in the workplace.

How can P2 Group help?

P2 Group independently reviews and documents the inherent requirements of jobs across a wide range of industries. The P2 Group occupational therapists visit employers’ work-sites to gain a first hand understanding of the job, take photos of key tasks and gather information from the employers’ representative to accurately document the inherent requirements.

If you have answered NO or do not have a comprehensive answer to any of these questions, there is an opportunity to.

  • Make significant savings on your WorkCover premium
  • Prevent and better manage your WorkCover claims
  • Improve internal WorkCover processes
  • Educate line managers on the importance of early intervention
  • Become an employer of choice.
Contact P2 Group today