Human Resources and Risk Management are often seen as separate functions. HR takes care of people, while Risk Management handles liabilities. In reality, every HR decision carries real risk implications, and every risk exposure has human impacts. When cities can align and connect the two areas, they can reduce liability and build safer, stronger workplaces.

Hiring, training, insurance, risk assessment—it all matters for managing risk and people. A bad hire can create safety issues. Gaps in training can open the door to compliance issues and costly claims. Unclear policies can lead to lawsuits and costly payouts.

The Cost of Disconnection

I’ve seen countless examples of cities terminating an employee without proper documentation. It might’ve seemed straightforward and justified on paper but when emotions took over, processes went out the window, progressive discipline was abandoned or overlooked, and it cost them dearly. The result was a costly claim, higher insurance premiums, and more importantly, mistrust among staff, triggering low morale and high turnover.

Insurance is critical—it’s a safety net that can support a city and its people. From workers’ compensation and employee practices liability to property coverage, insurance coverage protects cities when things don’t go as planned. But workers’ compensation goes much deeper than simply the cost of medical bills for the employee. The ripple effect includes lost productivity, staff shortages, and a strain on staff left managing the current void in duties, higher premiums, and overtime costs.

Create a Culture of Prevention

In our fast-paced environment, we often miss the simple solution. Cities can get ahead of this by being proactive through prevention, collaboration, and creating a culture where risk strategies and HR are aligned. Leaders need to model it, employees need to feel comfortable reporting issues, and training needs to be ongoing and practical. Safety and risk awareness cannot just be a check-the-box exercise.

Return-to-work programs are essential and a foundation for the HR and Risk Management working together. These programs help employees recover faster, save thousands on claim dollars, and show staff that the city values their well-being. I’ve seen the implementation of a return-to-work program that cut workers’ comp costs by half in less than 18 months. A great program that not only cut costs but improves employee engagement—that’s a win-win!

Simple Starting Points

For cities that want to connect HR and Risk Management, I recommend a few simple starting points.

  • Be honest about where you are now. Building a bridge starts by identifying the gaps between Risk Management and HR. It won’t happen overnight, but it’s better to start today instead of tomorrow.
  • Get both teams talking. Share information, data, and goals on a regular basis. Risk and HR need to trust and rely on each other.
  • Document and train. The good news is both departments are great at this! Develop clear and consistent policies paired with solid training.
  • Track progress. Watch for trends and get employee feedback.

At the end of the day, HR and Risk Management are not just administrative functions—they are the key to building safer, stronger organizations. Collaboration and teamwork can lead to lower claims, which ultimately lower premiums. Above all else, these departments create workplaces where employees feel supported and see the potential in their organization.

Partner With Our Experts

For expert guidance on bridging HR and risk management, consider partnering with Charlesworth Consulting. We bring decades of experience helping public entities with their risk functions. We would love to work with you and provide the insights and strategies you need to build safer, fiscally efficient programs. Reach out to us today and let’s get started!