Workers’ compensation initiatives delivered by the Department aimed to improve return-to-work outcomes for injured employees, reduce human and financial costs associated with workplace injuries, provide support and advisory services to workplace managers and injured workers, build the capability of the organisation to manage workers’ compensation and return-to-work responsibilities effectively, and meet legislative compliance.
During the 2015–16 financial year, the Department developed a number of initiatives to improve the health and wellbeing of staff including the new Medical Advisory Service, refreshed training and eLearning modules, appointment of a new WorkSafe Agent and improved collaboration with stakeholders.
The main activities during 2015–16 were:
delivered face-to-face workers’ compensation training to over 1,500 participants
ongoing improvement of the Department’s workers’ compensation
management through employee and stakeholder consultation and analysis of workplace data
undertook and completed a Request for Submission for the provision of WorkSafe Victoria Agent Workers’ Compensation Insurance Services to the Department. This resulted in the Department moving its workers’ compensation insurance policies from CGU Workers’ Compensation Ltd to Gallagher Bassett Services Workers’ Compensation Vic Pty Ltd
ongoing review of existing workers’ compensation claims and incident management systems, data and processes to identify opportunities for improvement
ongoing review and implementation of improved reconciliation processes and procedures
provision of support and advice to Department workplaces and schools through the Workers’ Compensation Advisory Service
ongoing improvement in workers’ compensation management through initiatives to promote early intervention and improve claims performance continued implementation of online learning workers’ compensation training
1 10 100 1 000 10 000 100 000 2013-14 2014-15 2015-16 Incidents 8,266 10,320 11,092
ongoing support to Department workplaces and external stakeholders in dispute resolution matters including conciliation and workers’ compensation legal proceedings
on-boarding of the Department’s new Medical Advisory Service provider. During the 2015–16 period the Medical Advisory Service managed 402 referrals. Eighty-four per cent of referrals were initiated by principals directly. Forty-four per cent of cases came from primary schools, with 34 per cent coming from secondary schools. There was a relatively even spread of cases received from the regions:
‒ 29 per cent South Western ‒ 27 per cent South Eastern ‒ 22 per cent North Western ‒ 20 per cent North Eastern.
There were 796 standard workers’ compensation claims in 2015–16, compared with 884 in 2014–15. The decrease in claim numbers is attributed to improved OHS and workers’ compensation management systems and processes. This resulted on an improvement in the rate per 100 FTE staff which decreased from 1.51 per 100 in 2014– 15 to 1.31 in 2015–16 (Figure 2).
Figure 2—Number of standard claims and rate per 100 FTE 2013–14 to 2015–16
The number of claims exceeding 13 weeks increased to 178 in 2015–16 compared with 103 in 2014–15 (Figure 3). This is attributed to the Department’s WorkSafe Agent performance. 1 10 100 1 000 2013-14 2014-15 2015-16 Standard claims 848 884 796
Figure 3—Claims exceeding 13 weeks and rate per 100 FTE 2013–14 to 2015–16
The Department’s initial workers’ compensation premium increased from $53.81 million (excluding GST) in 2014–15 to $58.16 million (excluding GST) in 2015–16, due to an increase in the weighted industry rate set by WorkSafe Victoria for premium calculation purposes. The Department’s workers’ compensation premium rate slightly increased in 2015–16 (Figure 4) from 1.09 per cent in 2014–15 to 1.11 per cent in 2015–2016, which is attributed to an increase in the weighted industry rates for premium calculation purposes set by WorkSafe Victoria.
The average cost per standard claim increased from $40,407 in 2014–15 to $55,810 in 2015–16.
Figure 4—Premium rate 2013–14 to 2015–16
The Department’s workers’ compensation employer performance rate decreased in 2015–16 (Figure 5) from 1.059 per cent in 2014–15 to 1.036 per cent in 2015–2016 even though WorkSafe rates and Department remuneration increased. This is attributed to the Department’s improved Workers’ Compensation and OHS processes and management systems.
0 1 10 100 1,000 2013-14 2014-15 2015-16 Claims exceeding 13 weeks 114 103 178
Rate per 100 FTE 0.197 0.176 0.293
1.00% 1.05% 1.10% 1.15% 1.20% 1.25% 1.30% 13/14 14/15 15/16 Premium rate 1.27% 1.09% 1.11%
Figure 5—Employer performance 2013–14 to 2015–16
Performance against occupational health and safety and workers’ compensation management measures
Measure Key performance indicator 2013–14 2014–15 2015–16
Incidents Number of incidents 8,266 10,320 11,092
Rate per 100 FTE 14.29 17.7 18.25
Claims Number of standard claims1 848 884 796
Rate per 100 FTE 1.47 1.52 1.31
Number of lost time claims1 326 321 291
Rate per 100 FTE 0.563 0.551 0.479
Number of claims exceeding 13 weeks1 114 103 178
Rate per 100 FTE 0.197 0.200 0.300
Fatalities Fatality claims 12 1 0
Claim costs Average cost per standard claim ($)1 42,603 40,047 55,810 Management
commitment Evidence of occupational health & safety policy statement, objectives, regular reporting to senior management & plans (signed by CEO or equivalent)
Complete Complete Complete
Evidence of occupational health & safety criteria in purchasing guidelines (including goods, services & personnel)
Complete Complete Complete Consultation
&
participation
Evidence of agreed structure of designated workgroups, health & safety representatives, & issue resolution procedures
Complete Complete Complete Compliance with agreed structure of above Complete Complete Complete Risk
management Percentage of internal audits/inspections conducted as planned 100 100 100 Percentage of issues identified actioned arising
from internal audits, health & safety
representatives, provisional improvement notices & WorkSafe notices
100 100 100
Training Percentage of managers & staff that have received OH&S training (induction, management training, & contractors, temps & visitors) (%)
60 66 70
Percentage of HSRs trained (acceptance of role, re-training/refresher, & reporting of incidents &
injuries) (%) 60 77 86
1. Data sourced from the Victorian WorkCover Authority (VWA). Standard claims include those that the VWA accepts and rejects. 2. A fatality claim was lodged with the VWA but liability was rejected on the grounds that it was not work related.
1.010% 1.020% 1.030% 1.040% 1.050% 1.060% 1.070% 1.080% 1.090% 13/14 14/15 15/16 Employer performance 1.086% 1.059% 1.036%