Budgeting for Work Injury Prevention & Safety Risk Management Strategy

As we begin to budget for strategic objectives in 2015, several work safety topics centered around an important theme come to light.  Posts ranging from safety training to workers comp/EMR risk, the importance of conducting fall hazard assessments and engineering fall prevention design — each capture elements of what I believe to be the annual theme for our blog, and what may be the most notable national work safety theme of 2014: Preventive Safety Risk Management Strategy.

Comprehending and preparing for the preventive work safety trend will prepare you for 2015 budgeting and set your organization on the path towards a beneficial work safety culture. While this may sound complicated, strategy setting will become easier after considering the benefits of preventive safety strategy.

First, Consider the Benefits of Safety Risk Management

The concept of pursuing Injury Prevention tactics for Safety Risk Management is not a revolutionary approach, nor is it a simple strategy to follow. The motivation behind injury prevention strategies that minimize risk to reap long term safety benefit is based in the complementary advantages provided by a preventative safety culture. Risk prevention strategy involves foresight and planning, and requires a greater upfront investment cost. Over time it will result in fewer injuries, worker lost time reductions, improved workers comp rates, and other indirect savings and benefits. From this perspective, preventative safety risk management ultimately provides inherent value to businesses that are financially stable and well-managed.  These businesses are typically set up to plan ahead strategically and invest accordingly. If they are able to effectively implement safety risk management strategy, they will thrive when compared to protection-focused strategies with stringent safety controls.

Safety risk management investments provide ROI via reduced workers comp claim costs, less lost worker time, culture and morale benefits

…then brainstorm Injury Prevention Strategies

The elements of successful injury prevention strategies are not unlike those of a typical work safety program, with respect to procedural elements. Hazard assessments, incident recording, policies and training remain standard work safety objectives. The subtle difference between injury prevention through safety risk management versus protection and control strategies is that prevention policies and controls are engineered to prevent risk, as opposed to simply identifying risk areas and protecting workers. For example, while injury risk hazard assessments are an element of most work safety programs, an overarching preventive strategy will interject that step into the initial processes of any new development or work activity.  The goal is circumventing, not simply mitigating, potential risk areas. With this in mind, preventive strategy is most effective when work safety culture is established and new initiatives are supported by an acknowledged organizational safety commitment.

Reassess work processes with a risk prevention approach and inject the process into strategic planning

Preventive Safety Incentives & Training Ideas

In support of building a work safety culture that values and supports injury prevention ahead of protective measures, safety incentives should be structured to reward preventative innovation as opposed to strict adherence to performance metrics such as injury rates or lost time. For example, an organization might hold a contest that challenges employees to propose an injury risk prevention strategy that reduces injury risk for the work process that had the highest injury rate the previous year. This approach delivers the strategic preventative message while working to solve a problem, and also helps to increase employee commitment through involvement. Similarly, training documentation should emphasize the importance of avoiding unnecessary risks as much as utilizing the proper protective equipment or following the recommended procedure. In an injury prevention safety environment, the goal should be to efficiently avoid risks, not plow through them with precautionary measures.

Safety policies that require PPE can often be improved via equipment investments that increase efficiency and reduce injury risk

Now You’re Ready to Budget Your Injury Prevention Risk Management Investments

We at the Safety & Numbers blog encourage you to invest in injury prevention engineering strategies and equipment as you write the 2015 budget. Establishing preventative work safety as a cultural value will not only offer the ‘usual suspect’ benefits (monetary expenses, less lost worker time, improved morale, etc.). Over time it will provide indirect benefits such as workers comp rate and hiring advantages. Need help with your injury prevention safety planning? Contact IAS

 

Work Safety Policy EMR Strategies to Lower Workers’ Comp Rates

At the beginning of each fiscal year, your insurance agency will provide you with your Experience Modification Rate, or EMR. This value serves as a multiplier to calculate your annual workers’ compensation insurance premium. EMR may lower or raise your premiums based on the history of safety and injury claims that your company exhibited over a three year period. It is also the most direct method of calculating a return on investment on work safety investments.

By improving work safety policies and following preventive practices that lower injury loss rate, business can save thousands of dollars annually on premium reductions.

Work Safety Policy EMR Strategy

The most direct way to lower your EMR is to institute a Work Safety Policy that is supported and promoted throughout the organization. Work safety policies build cultural safety values and institute programs, incentives and controls that improve processes and cross-departmental knowledge of safety.

Here are some ideas from a work safety policies at successful companies.

  • Develop a Safety Committee to assess and improve communication about safety policy and strategic EMR initiatives
  • Create a Return to Work Policy to encourage workers to return when able and reduce the length of claims
  • Initiate Job Classification reviews to communicate job responsibilities to employees and improve expertise
  • Implement strategies to generate a Safety Culture including Management Involvement, Incentive Plans, and Injury Claim packets with helpful information

Equipment Work Safety Policies for EMR

In support of work safety policy, effective management of equipment can further help reduce injuries and lower EMR. Ensure that equipment is operating properly and develop an Out of Service policy to inform team members how to handle malfunctioning equipment. Conduct work hazard analyses to identify equipment to reduce injury risk. Input from the employees that actually operate the equipment is highly valuable when developing policy. And remember that each work site or piece of equipment is unique and thus may require custom access solutions.

The above article was originally published in the January 2014 IAS Trucker Newsletter.  Sign up today to subscribe and receive our monthly Work Safety newsletter.

Examining Safety at Top Contractors

The Engineering News Record recently published a list of the Top 400 Contractors.  At companies with $10-$30 billion in revenue, the number and size of contracts justifies a dedication to worker safety that small to mid sized businesses can emulate to help shorten the learning curve. Safety is deeply integrated into each of the Top 3 contractors’ day to day business policies and organizational culture.  Contracting firms that strive to achieve success may observe this theme as motivation to implement safety at the highest level to increase revenue and support growth.

Bechtel

At Bechtel, the safety goal is Zero Accidents.  Safety is integrated into each project via technical field procedures and extensive training.  Each employee has ‘stop-work authority’ if they feel a job responsibility is potentially unsafe.  To incenitivize safety and communicate its importance to employees, Bechtel provides multiple awards for exceptional safety performance and innovation.

Fluor

Fluor’s commitment to safety includes a “ZERO incidents” policy. Fluor has received recognition as one of America’s top safety companies by demonstrating excellence in “support from management and employee involvement, innovative solutions to safety challenges and effective training programs.” One such program is the Field Audit system, a proactive approach to identify and mitigate work hazards.

Kiewit

Kiewit has instituted and follows a ‘Nobody Gets Hurt’ policy.  Kiewit is focused on preventing even the most minor injuries through  employee engagement throughout the organization coupled with a supporting management commitment.  “Safety training, observation programs and job hazard analyses” help to support this vision.

Innovative Access Solutions

Innovative Access Solutions provides safety equipment to each of the Top 3 contractors listed above.  In addition to the Trucker series of trailer access products, IAS provides custom access solutions for remote locations, unique jobsite requirements and more, in support of construction work safety policies.  To request information about safety equipment from Innovative Access Solutions, click here.

Creating Safety Incentives

Incentivizing safety is a controversial topic for management professionals. While the results of incentive programs are generally effective, it is important to create safety incentives that provide the proper focus.  The method, motivational factors, and objectives must be properly structured to avoid undermining the desired effect. In fact, businesses that create safety incentives which discourage employees from reporting injuries are at risk of OSHA violations.  Fear not, safety professionals, by following a few guidelines you can create incentives that build safety culture across the organization.

Safety Incentive Guidelines

  • Make sure you have a safety program in place before creating incentives. Use incentives to enhance the organizational buy-in of a safety program.
  • Plan incentives around the objectives you set for the program.  Reiterate focus and goals at every opportunity.  Reward and promote performance.
  • Avoid incentives that may lead employees to fear the consequences of reporting incidents.  Remember that incentives are to promote safety, not just meet goals.
  • Capitalize on data management technology trends to track and reward long term safety program metrics as well as short term or more focused objectives.

Safety Incentive Program Ideas

  • Safety Slogans: Many incentive programs center around the creation of slogans submitted by members of the organization.  The advantage of slogan incentives lies in culture building and organizational involvement.
  • Safety Quiz: These programs help to ensure employees understand shifting safety initiatives and can also test employee response to real world applications.
  • Housekeeping: The cleanliness and organization of work areas often has a direct effect on safety and can be easily incentivized.

Safety incentives can be a means of establishing a sustainable safety culture while reducing the burden on employees.  Programs such as number of days without injury or lost time can be effective, but should be structured carefully to ensure employees report injuries.  The most effective programs are part of a larger injury risk management safety program, providing support in a way that employees want to participate in.

Making the Case for Work Injury Prevention [INFOGRAPHIC]

The costs of workers’ compensation and other work injury expenses are significant and difficult to predict.  To manage this risk, businesses should build safety culture by implementing  work injury prevention programs and providing incentives to employees that promote safety across the organization.  For an overview on how to make the case for work safety policy, review our Work Injury Prevention Infographic.

Celebrate Independence with Freedom from Work Injuries

The Fourth of July celebrates an important day for Americans and proponents of liberty across the globe. With the signing of the Declaration of Independence our founding fathers paved the road for new ideas ranging from civil rights to individual freedom and equal opportunity. The beauty of the American system is in its providence of choice. Each and every American citizen has the opportunity to capitalize on the liberties promised by the Constitution and Bill of Rights. As Americans we know that we must work for the security of our family.  Opportunity is provided, success is earned. Each individual is blessed with the same system of laws, liberties, and protections. Those who work hard will excel. 

The basic principles of American liberty branch off and extend throughout society. At times it can be perplexing to consider how little we take advantage of the system that is set up to enable us to succeed. One such area is workplace safety. Federal protections for employee safety have been a part of American society since the late 19th century, and OSHA legislation was first enacted over 40 years ago. The laws help to protect not only the individual worker, but also to shield businesses from the risk associated with workers’ compensation claims, lost employee time, and production delays. Yet, OSHA citations are commonplace throughout industry.

Declare Your Independence in 2013

In 2013, we challenge you to Declare Independence from Work Injuries. As a society blessed with personal freedoms, it is inherent that we encourage each other to achieve greatness. The opportunity to achieve an injury free workplace is provided as a safety incentive to all businesses, and the benefit, as is so often the case, cannot be expressed merely in dollars and cents. A safe employee is a happy employee, and happy employees work hard, recruit their friends, and provide great service to your customers.  Take the time to consider the graciousness of a government that provides support for workplace safety, and factor how you can improve safety at your business to earn maximum benefit. Protect yourself from risk and remember the long term benefit of a safe workplace. After all, it’s the American way.