Case Study

The Client

A specialized industry staffing company with $200M or more in gross wages operating on a national basis with Fortune 500 clients.

The Challenge

The investment group had reached its designated divestiture date and was having difficulties selling the company due to workers’ compensation as well as risk management issues. The profitability of the company had eroded during recent years due to the aforementioned issues as well as declining sales.

The Solutions

Staffing Company Turnaround

• The risk management, workers’ compensation and underwriting departments, procedures and practices were re-engineered
• The workers’ compensation history included poorly managed claims causing over estimated collateral demands as well as significantly increased loss picks for upcoming policy years
• An aggressive review of internal personnel and management in the claims area was conducted
• The personnel were retrained, policies and procedures were re-engineered, and leadership was changed
• A well-designed claim work down program was implemented for the collateral issue
• The field management personnel responsible for daily account management and hiring were aggressively trained in sales, loss control and risk management preventative tactics
• The field management’s compensation package was significantly redesigned to incorporate large portions attributable to risk related items, service grades as well as sales
• Company wide key metrics and robust analytics were implemented in order to focus on the finite details of sales and risk trends allowing senior management to take immediate corrective actions weekly
• The corrective actions and post-acquisition best practices installation in all areas continued well after the sale of the company

The Results

• A $2M reduction in collateral requirement was achieved in less than two years

• The total incurred annualized rate was reduced resulting in a $1.5M same year savings
• The incident rate of new claims was reduced by 40% by implementing effective loss control practices and revised safety programs
• The sales increased organically by 20%+ in the first year
• The staffing company was sold to a new investment firm through a bankruptcy vehicle which eliminated past burdens within one year of the program start