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Construction Payroll And Workers’ Comp Management Tips

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Worker’s compensation exists for the benefit of everyone, not just employees. There are more risks than usual around employee work requirements in the construction industry. This makes construction workers’ comp even more critical for the modern-day contracting business.

Fortunately, things like construction payroll software, improved employee management, and a fresh outlook on productivity can help make construction payroll and worker’s comp even easier to manage. 

Some of the top workforce injuries of 2020 and 2021 were transportation incidents, falls, assaults, and exposure to harmful substances or environments. The average construction worker may find themselves exposed to these common workplace injuries. This makes this topic particularly important for those managing their insurance and compensation. 

Any construction company needs to cultivate a strong sense of awareness around workplace safety. Plus, there’s a requirement to provide ample cushioning for any employees that find themselves in need of support.

Top 10 Management Tips For Construction Payroll and Workers’ Comp

Implement strong workplace safety measures 

One of the essential steps for more effective construction workers’ compensation management is simple. Prioritize a robust and straightforward workplace safety protocol. 

By implementing appropriate safety measures now, you can reduce the chances of employee injury and create a safer, more cohesive workplace environment for everyone. Complying with all necessary OSHA regulations, researching state guidelines, and keeping worker comp premiums in check are just a few ways to do this. 

Beware of common fraud and scams 

Popular media stories tend to fixate on one type of fraud in particular: false injuries. But while the US has a long history of inflammatory insurance claims, a recent study suggests that the actual fraud rate committed by employees sits at a meager 1-2%. Compared to other fraud statistics, this is very low. 

However, that doesn’t mean you shouldn’t take the necessary precautions. There is still a risk of being scammed for worker’s compensation, even if that risk isn’t very high. 

There should be precise procedures for employees to go through before claiming compensation. Some common red flags to look out for include conflicting stories, claims of injury outside of the employee’s line of work, late reports, and declined treatment. 

Consider age demographics

The average age of construction workers in the US is 42.5 years. That means construction payroll and workers’ comp managers deal with a predominantly male, middle-aged demographic. 

Unlike other industries whose workers are getting younger over time, the construction industry continues to be filled with adults in their 40s and 50s. The Bureau of Labor Statistics found that in 2017, employees between the ages of 55 and 64 were most likely to be involved in a fatal incident. And that’s the vast majority of construction workers now in 2022.

Certain liabilities prevalent in this social group need to be kept in mind when creating systems. For example, bone breakage, respiratory illness, and arthritis are common illnesses for middle-aged people, primarily if they work in physically exertive environments. Remember to take extra precautions to keep them safe in the workplace. 

Learn the complexities of payroll across different states 

As any construction payroll manager should know, US states can have very different laws and regulations around various subjects. It’s no surprise that one of them is worker’s compensation. 

Even though you can use construction payroll software to do the admin for you, it is highly beneficial to take some time to learn the differences between payroll regulations across the many different states of America. What flies in one won’t do in the other, and you need to know which is which. 

In the event of an injury (whether fraudulent or not), having accurate, relevant data on hand for deeper clarity about how to move forward is extremely useful. 

Act swiftly and thoroughly with claims filing  

The sooner you get through the paperwork, the less money your company spends. Acting swiftly and in compliance with the official regulations is the best way to minimize compensation costs. Typically, any overdue reports or latent paperwork increases costs, which you should avoid. 

You can do this by firstly being on top of any claims filing or paperwork that needs to be reported and making sure employees have access to help and support as soon as they need it. From the moment they break their arm or develop a work-related illness, don’t let them wait for the help they need. 

Track employee recovery

This is an area to keep an eye on regarding construction workers’ comp fraud. Unfortunately, it is not difficult for an employee to request extra compensation or paid rest time at this point in the process. So, keeping track of where they stand recovery-wise is essential. 

Get a trustworthy medical professional to assess employees throughout the recovery process, and you will gain a better idea of what support is needed before they return to work. It also provides clarity on the timeline of exactly when they will return. 

An employee’s compliance with the approved treatment plan indicates a genuine desire for recovery and a much smaller chance of fraud. Non-compliance can also cause wasted time, delaying recovery and inflating the compliance claim. 

Develop a strong return-to-work plan

The last thing you want to do to a mending construction employee is to force recovery. This could aggravate the injury and cause another one to happen – putting that employee and those around them at risk for harm. 

It is also important to consider the social isolation that occurs during an employee’s absence from work. A sense of community, bonding, and morale is critical for any worker. But for construction workers, it is even more relevant to their employee experience. 

Doing what you can to minimize social alienation can help recovering employees reintegrate with their co-workers and allow them the rest they need for productivity.  

Accommodate for women in construction

Although construction has been a male-dominated industry for decades, women are pursuing careers in construction at an increased rate. Skills like welding, forklift driving, and equipment operation are no longer just being acquired by men. And this influences construction payroll and compensation. 

Firstly, a large portion of PPE (personal protective equipment) is designed for male bodies. This means that the women who rely on them for protection are not guaranteed to receive it. 

Without the protection of fitted goggles, safety vests, gloves, harnesses, and flame-resistant clothing, women are put at a distinct disadvantage when it comes to safety. Fortunately, regulations are being implemented by OSHA. But all construction company managers should look into them properly. 

There is also the National Association of Women in Construction. This association aims to dismantle stereotypes and equip companies with the tools and information necessary for keeping female employees just as safe as their male counterparts. 

Use technology to prevent injuries

There are many different ways technology can optimize employee safety and construction payroll distribution. Most construction payroll software programs are designed to streamline admin and data processing. This allows for creating and developing more succinct construction workers’ comp plans. 

There are also newly emerging wearable technologies that employees can use to increase work productivity, protect themselves from harm, and perform at a higher level. For example, chemical management is important and there are some great options to buy via Storemasta, such as portable collapsable bunds designed to contain leaks and spills in a range of work areas.

Things like smart helmets armed with fall-detection technology, vests with GPS mechanisms, and glasses that can receive information or even record videos are all smart technological investments to make. The better your construction team is equipped, the happier, safer, and more productive they will be. 

Be fair, attentive and humane

Managing employees’ emotional and psychological impulses is critical for protecting their best interests. By adopting a more open, empathic management method, those in charge of construction workers’ payroll and comp can make life easier for everyone. And it makes employees more likely to come to you when they spot a safety issue, so you can address it before anyone gets hurt.

As businesses worldwide start to shift their approach towards employee health and safety, everyone could use a little extra humanity in their lives. 

Build a workers’ comp plan that benefits everyone

Worker’s compensation is about so much more than just ticking boxes and dotting the i’s. It exists as a template for treating people the right way when they have been hurt or waylaid by their environment – something that happens to just about everyone at some point or other. 

After the past few years of Covid-induced health scares and no short supply of anxiety, it’s easy to predict that construction workers’ comp and payroll will be hot topics for both employees and employers.