Common employee compensation problems encountered by enterprises

A lot of businesses often experience compensation problems, especially in the first few months of operations. These situations can have adverse effects on your company. Employee morale will take a hit, leading to sub-par productivity and hurt sales. This can even lead to bigger problems such as employees leaving the company, and wasted hours and resources on their training and development.

Risk management expert Michael Saltzstein recommends predicting common employee compensation problems to save a lot of money. Take note that compensation could refer to monetary compensation or other employee entitlements such as healthcare benefits. Here are some examples of common compensation problems encountered by most businesses:

Late filing of compensation claims

If an employee gets injured while in the field or while working operations, they are only covered by insurance if they were able to file the claim within 30 days of the incident. In such an event, HR must proactively remind the employee to file their claim within the allotted window.

Denied compensation

When an employee files their healthcare claims late, it is possible to get denied of compensation altogether. This means that employees will shoulder the costs of treatment. Not only that, days missed because of absences are also subject to review. And if an employee spends a significant amount of time absent, they could lose their jobs. According to Michael Saltzstein, HR could very well assist employees to prevent such occurrences.

Specializing in risk management and corporate insurance, Michael Saltzstein served as the Chairman for Risk Management Task Force, Local General Chairman, Local Officials Chairman, and Local Safety Chairman for USA Swimming. He has been a volunteer and official for the organization for over three decades. For more reads on risk management practices, visit this blog.