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How a staffing company can help decrease your workers comp claims!

Updated: Feb 27, 2020

Let's face it! No one likes to be hurt or injured but when it comes to manufacturing or production these things happen. For each injury on the job, there is a loss of production. After production costs comes increasing insurance claims. Last but not least comes insurance/MOD rate increases! These increases in rates can be devastating for a companies bottom line, profits and can even put a company out of business if not looked at with caution.

How does an agency come into the picture? Well, most if not all of this liability can be eliminated by your company if you work with a staffing agency on a contract to hire basis. The temp worker is an employee for the agency and not the company itself so if there is a work related injury all of the medical expenses, etc. fall on the agency. Thus reducing your liability that lowers your company insurance rates and can increase profits from savings of hundreds if not thousands of dollars a year!

Example:) If a companies MOD rate has increased to (1.2 rate) because they have seen spikes of injuries and just 2 years ago they were at a (1.0 rate). This means today they are paying 20 percent more in insurance premiums! Look at how much money could be going to business growth, hiring more canidates, etc. but instead that "extra money" is already accounted for.

If this company hired an agency for the next 2 years they would see there MOD rate instantly decrease and get them back to paying normal rates. Thus using extra money saved for opportunity costs in the future.

If you liked what was discussed in this article, are friends at Cross Personnel can help you with this issue as well as any other issue regarding staffing. Call to schedule a meeting at 630-313-6487 or at

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