How to Build Positive Relationships with Your Employees (and Decrease the Chance of Workers’ Comp Fraud)

Workers’ compensation fraud can be costly and frustrating, but in order to mitigate it, employers must expand their focus beyond recognizing fraud when it occurs. In many cases, consciously forging positive employee-employer relationships and cultivating strong communication is one of the best precautionary steps to take.

Making this effort can foster an atmosphere of honesty and mutual respect, which can then reduce the motivation for an employee to defraud the company. When employees feel disconnected from and disregarded by an employer or corporation, they may be more likely to rationalize financially cheating that organization. Here’s how to avoid this by building and sustaining a beneficial symbiotic relationship.

Making this effort can foster an atmosphere of honesty and mutual respect, which can then reduce the motivation for an employee to defraud the company. When employees feel disconnected from and disregarded by an employer or corporation, they may be more likely to rationalize financially cheating that organization. Here’s how to avoid this by building and sustaining a beneficial symbiotic relationship.

1. Visit employees in person.Sending emails is convenient and functional, but face-to-face interaction is essential in building any relationship.

2. Provide an open platform for feedback. Start by keeping your office door open as often as possible so employees are invited to enter. When staff members feel they can come to your office to voice any concerns, tell you about new ideas, or even just to say hello, they feel respected — and in turn, they’re more likely to offer up mutual respect. Make every effort to remain approachable.

3. Don’t show favoritism.Be equally fair and just with each and every employee. It’s easier to justify a lapse in accountability when we feel we’re being treated unfairly… and employees may go so far as to rationalize fraud to even the score. This includes viewing yourself as an equal and following all company rules yourself.

4. Go the extra mile. If it’s within your means, try surprising the staff with coffee and donuts or a special-occasion early release as a reward for a job well done. Don’t be afraid to step outside of your office and offer hands-on help with especially challenging projects. This allows people to connect with you as an equal.

5. Keep goals realistic. It’s good to push your team, but don’t push so far that they regularly feel burned out. Besides lowering morale, burnout can be a potentially injury-causing distraction.

6. Cultivate mutual honesty.Ask your employees for their input, and be honest with them in return. Find ways to demonstrate that you value them as people, that you don’t just think of them as nameless workers under your control. This can be as simple as a quick “how was your weekend?” on Monday mornings.

Part of the key to stopping workers’ comp fraud is to make a conscious effort to connect with your workers on several levels. This will take time and regular upkeep, but it can pay off in the end.

equal to a success for employers and employees statewide. Let’s work together to prevent the bad apples from skewing the system against the rest of us!

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5 Ways Employers Can Prevent Fraudulent Claims

There are some things you can’t prevent or predict, but you can reduce your risk of becoming the target of fraudulent claims in several ways:

1.) Close Communication

  • If you talk to your employees about the risks of filing fraudulent claims–for them legally, and for the entire security of the business and their coworker’s jobs–they will be less likely to pursue those kinds of claims. Make sure you make your zero-tolerance policy on fraud very clear, and also make sure all employees know that they can report fraud anonymously.

2.) Drug Testing

  • One of the most common reasons employees file fraudulent claims is to access prescription medications to which they are addicted. If you detect opiate use in an employee, they’re likely to seek pain medication. Furthermore, drug users are typically more desperate and unreliable than non-drug users, and a positive drug test could be a helpful red flag.

3.) Careful Hiring

  • Keep an eye out for employees with a history of job-hopping, especially if they work in industrial or manufacturing positions where employees typically stay for many years. Furthermore, trust your gut and the feelings of other coworkers; typically, if someone is just looking for an easy payout they won’t work very hard or seem like they’re trying to create good, lasting rapports.

4.) Surveillance

  • Installing video cameras in areas where workers are likely to claim injury (such as loading docks or anywhere ladders are used) is a great way of heading off false claims.

5.) Create a Supportive Working Environment

  • Typically, employees are more likely to file fraudulent claims against employers they don’t know or do know and dislike. They feel like they’re “sticking it to the man,” but if you actually foster a good relationship with workers and create a work environment where everyone is mutually invested in the success of the company, your employees are far less likely to take you for a ride. Sincere employee loyalty is the best insurance against worker fraud.

Of course, if you’re an employer who’s already been the victim of a fraudulent claim, what you need to do now is fight it! Call us at Stop Claims to talk about your options.