Any business that wants to control its operating costs should explore ways to make its risk management practices proactive instead of merely reactive. In a reactive environment, problems only get resolved once they are past the point when solutions were relatively cheap and easy. A proactive approach has many advantages for an employer. In particular, staffing firms can benefit from getting ahead of potential risks.
Some of the advantages include these:
1.Getting a firm grip on likely risks.
A big part of a proactive approach to risk management is the process the organization goes through to study the kind of risks it faces now and the kind of risks it is likely to face in the future. The proactive approach rests upon building risk evaluation into every process. For staffing firms, this includes making risk management a core part of new client engagements.
Understanding potential risks involves an examination of their root causes, likelihoods, and probable costs. An organization that lacks this information is much more likely to be caught off-guard by an accident. But a firm that has taken the time to study its risks can take steps to manage them, like providing specialized training, working with the client to upgrade its processes, and so forth.
2. Avoiding disruptions with clients.
For the staffing industry, a major problem with the reactive approach is that it can put a strain on the staffing firm’s relationship with a client. A reactive approach might include a plan for responding to injuries as they happen, but it may struggle to implement effective and timely solutions to hazards at a client worksite following an injury. Disputes about the cause of the injury and debates about safety practices can derail the relationship.
A proactive approach avoids such disruptions by building risk management at the start of the client relationship. A proactive staffing firm can offer value to its clients by adding a fresh perspective on their policies and procedures. Building a constructive relationship before a crisis helps the staffing firm and the client better respond to accidents and injuries when they do happen.
3. Lowered costs.
By proactively managing risks, a firm can realize significant cost savings. Evaluating and addressing potential workplace hazards is typically much less costly than an injury that could have been avoided. An injured employee creates administrative burdens as work assignments are shifted, provisions are made for disability, and workers’ compensation claims are processed. The injury also may increase insurance costs. A proactive approach not only reduces the likelihood of injuries, but it can even justify lowered insurance costs over time.
Gunnin specializes in helping staffing businesses evaluate and improve their risk management programs. Our comprehensive services address staffing firms’ needs at every stage, from initial risk assessments to complete claims management. Give Gunnin a call today to find out how we can help your firm’s risk management program do more.