Employee involvement: An effective strategy for reducing workers' compensation costs

Costs associated with workplace injuries and illnesses continue to be a major concern for apparel manufacturers. A major cost is that of workers' compensation insurance, the social insurance programme that provides a means of paying for costs associated with work‐related injuries and illnesses. The purpose of this study was to examine the practice by US apparel companies of involving employees on safety teams or committees as a strategy for reducing workers' compensation costs. Data were generated from responses to a mailed questionnaire by 134 upper level managers in apparel companies located throughout the USA. Results indicated that 60 per cent of the respondents involved employees on a safety team or committee. Chi‐square analysis showed a significant difference in observed frequencies and expected frequencies for change in workers' compensation costs when employees were involved in safety teams or committees. Employee involvement was reported as a component of ergonomics and safety programmes by over two‐thirds of the companies that were developing and implementing such programmes. The findings from this study provide support for involving employees on safety teams or committees as a cost reduction strategy.