There are many types of workers comp tracking software from which to choose. At times, misunderstandings have arisen because of the proliferation of these programs. For example, there are two basic categories into which workers comp software falls:
- Tracking software that integrates well with payroll platforms and is more appropriate for employers
- Claims management software which is more suitable for law firms or HR outsourcing partners
While each category of software has its place, many business organizations find that it is possible to enjoy the "best of both worlds" by combining the appropriate software with a reputable and experienced outsourcing partner. This approach often leads to lowered premiums and even the absence of a policy deposit.
Two Types of Workers Compensation Software
While the two main categories of workers comp software share some similarities, there are also significant differences between them in terms of purpose and functionality. For example:
- Case management software (also known as claims management software) assists lawyers, HR professionals, and other workers in similar roles in compiling detailed information on individual claims and the claims process itself. For instance, these software programs may intuitively document discrepancies between an employee's report of injury and his or her medical history. They are primarily useful for workers’ compensation attorneys dealing with specific claims or HR outsourcing partners handling the claims management process.
- Workers’ comp tracking software is more oriented towards the business side of the claims process than the legal side. It is especially effective at tracking premiums and expenses related to workers’ compensation and recording such information in an accounting context. Many programs in this category also integrate well with payroll, which is a huge plus for employers that want to consolidate data around their cash flow.
What to Look For in Workers' Comp Tracking Software
When considering how to approach tracking related to workers' compensation and which type of software to choose, business leaders should consider the following key factors before making their final decision:
Does the software integrate with payroll?
If a business utilizes a stand-alone workers’ comp tracking program, then time and resources will ultimately be wasted through redundant data entry. There will also be an increased opportunity for faulty or incomplete data entry on one or both programs. In contrast, best-in-class workers comp tracking software comes natively integrated with payroll, time, and attendance functions. It also offers self-service portals for employees and employers that reduce the time needed to complete the workers’ comp claim filing process.
Can the software handle complex scenarios?
For example, basic accounting software is generally equipped to handle only one type of workers' compensation policy, only for one state and possibly even one worksite. This lack of versatility is unacceptable for a company that may operate in multiple states and across several work sites. In contrast, sophisticated software can support many policies across all 50 states. It also enables administrators and analysts to move between multiple worksites seamlessly.
Does the software contain flexible reporting and organization tools?
Workers’ comp tracking software should ideally be able to filter data by factors such as policy type, date, division, department, position, etc. This allows key stakeholders to quickly and easily search for claim-specific data and generate highly detailed reports. Moreover, the program should efficiently track workers comp class codes, billing rates, and the collection of workers comp premiums.
Does the system have compliance support?
Workers compensation software with this feature helps HR professionals manage employee workers' compensation requirements such as fee schedules, medical requirements, CMS, and the first and second report of injury (FROI/SROI).
Will the software yield a relatively high return on investment?
Ultimately, a program's projected ROI should be one of the primary factors in any decision made. Instead of investing in multiple unrelated platforms, a program that integrates several essential HR functions (onboarding, benefits enrollment, etc.) will yield a higher ROI. Moreover, the highest possible return on investment often results when companies partner with Professional Employer Organizations (PEOs) that provide outsourced administrative services and deliver best-in-class software at no additional cost.
Lowering Workers' Comp Premiums
One of the key benefits of partnering with a PEO is receiving well-integrated, all-in-one tracking, and administration software, while simultaneously gaining access to the reduced workers’ comp premiums that PEOs can offer. There are at least three specific advantages associated with this strategy:
- Employers can pay their workers’ comp premiums on a non-binding (pay-as-you-go) basis
- The policy will not require any deposit on the workers’ comp policy, thus enabling the employer to save on upfront costs
- Experts at the PEO are well-versed in workers' compensation law and will handle claims management, thus sparing the employer the extra expense of hiring a law firm with their case management software.
Choosing the Best Workers' Compensation Software
Employers can buy best-in-class workers' compensation tracking software by itself. However, such software on its own would never be able to handle workers’ comp claims. The solution to this dilemma is to take a two-pronged approach. By partnering with a reputable PEO, businesses can gain direct access to exceptional workers’ comp tracking software and workers comp case management software for no extra charge. They also reap the benefits of the PEO's lowered premiums and pay-as-you-go cost structure.
