What is a GAP Analysis?
In management literature, gap analysis involves the comparison of actual performance with potential or desired performance. If an organization does not make the best use of current resources, or forgoes investment in capital or technology, it may produce or perform below its potential.* In reference to the Certificate of Recognition (COR) in Alberta, gap analysis is used to evaluate an employer’s current Health and Safety Management System practices. Gap Analysis will help an employer by highlighting areas that are compliant with standards and identifying areas that need improvement in meeting the requirements to earn or renew a COR. Joining the Partnerships in Injury Reductions (PIR) program indicates that your organization has chosen to take a leadership role in workplace health and safety, however there are no financial benefits to being a Partner unless you have a COR. Upon obtaining and maintaining a COR, a Partner becomes eligible for potential rebates. Whether […]
WCB Alberta Employer Rebates: Are You Missing Out?
Last month, the WCB Alberta announced a surplus funding of $467 million that will be distributed to Alberta employers. According to a 2014 Calgary Herald article, 2013 marks the sixth time in the last 10 years that the WCB Alberta has declared and distributed a surplus, factor in rebates in 2014 and 2015, and it becomes the eighth time in 12 years. In the past three years alone, almost $1.5 billion dollars has been paid out to Alberta employers, prompting the Canadian Federation of Independent Business (CFIB) to publish a paper urging the WCB Alberta to issue refunds at a more reasonable threshold. Surplus funding occurs when the WCB premiums collected from employers are invested and there is a higher-than-expected return on that investment and/or there is a lower-than-expected amount of claims and claims costs for the year. When the funding pool exceeds more than 128% of anticipated amount to […]
How to Determine the Cost of WCB Premiums for Your Business: 7 Things You Need to Know
Workers’ compensation is a form of ‘no fault’ insurance for workers injured on the job. It has been a part of the Alberta labour workforce since 1918 when the Workers’ Compensation Act was established. Essentially, employers agreed to pay into a fund that would be used to cover the costs associated with a work-related injury or illness and in return, workers gave up their right to sue their employers as a result of getting sick or hurt on the job. The fund was set up similar to an insurance policy where employers pay annual premiums to the WCB and workers file a claim with the WCB if they were injured as a result of their employment. The premiums collected, managed by the WCB, would then be used to cover the medical expenses, wage loss and other associated claims costs related to the injury. How much employers pay in WCB premiums […]
Does the Number of WCB Claims Filed Affect Overall WCB Premiums?
With the first half of January almost complete, it hopefully went injury and accident free. It’s a new year, a new beginning, and a fresh start for your workplace safety record. Whether your accident/injury/claim record was excellent, good, fair, poor, or non-existent last year, ensuring that you minimize, reduce, and/or eliminate WCB claims in the current year can have a positive impact on your WCB premiums in years to come. How are premiums determined? To fully appreciate how WCB claims influence premiums, one must understand how WCB premiums are determined. The premiums employers pay fund workers’ compensation insurance, essentially the amount collected, when invested, should be enough to cover all current and future costs of all claims incurred in the same year. The amount of premiums to be collected is determined by an annual estimate of insurable earnings and claims costs of a given year; therefore premiums collected in 2016 […]
How can the PIR Program Reduce WCB Premiums for my Company ?
As 2015 winds down and the start of a new year looms ever closer, it is never too late to review your WCB premiums and explore ways in which they can be lowered. One of the most effective ways to reduce the WCB premiums your company pays is through participation in the Partnerships in Injury Reduction (PIR) program that operates through the combined efforts of the Workers’ Compensation Board of Alberta (WCB), the Alberta Ministry of Jobs, Skills, Training and Labour (JSTL), industry partners, safety associations, employers and labour groups. The goal of the PIR program is to reduce claims and claims costs through injury prevention in conjunction with the development and implementation of workplace health, safety and disability management systems. The incentive for employers to participate is recognition by the WCB Alberta, which results in premium refunds based on claim cost performance. Employers’ performance is measured in three ways: […]