Case studies

Workers' compensation

Client

An Australian transport company with national operations engaged Aon Hewitt to review the structure of their national workers’ compensation arrangement.

Challenge

The client sought to:

  • manage increasing workers’ compensation costs
  • design a sustainable management solution for the workers’ compensation team.

Solution

Aon Hewitt partnered with the client to:

  • review the overall performance of the workers’ compensation function, together with the team’s interactions and performance measures
  • design a new organisation structure with every position being redefined, with skills, reporting lines and functionality identified
  • design and implement new performance measures relative to the business and its objectives
  • implement a review of the team’s financial performance, once the correct organisation and management structure was in place
  • assess viability of the company moving to a self-insured environment.

Results

After implementing Aon Hewitt’s solutions, the client achieved:

  • savings in excess of $6.25m pa (over $25m in a four year period) through self-insurance
  • significant increases in profit and a positive impact on cash flow
  • a new, efficient organisation structure implemented to ensure the company’s future success.

 
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Bruce Edwards
Steven Cakaric