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

 

The Trucker Newsletter: Fleet Friendly Trucker Access

At Safety & Numbers we are building customer interest in The Trucker Series trailer access products, in the form of real genuine online product reviews at IAScustom.com.  You know… like the ones you see on Amazon, only better. We think IAS produces the highest quality and safest trailer ladders available and we’d like you to help us make the web just a little bit more accurate on that topic.

In fact, our newsletter is offering a promotion for those who provide an Online Product Review at IAScustom.com. And yes indeed, we want to pass along that promotional opportunity to you faithful readers as well. Simply provide an email address with your Online Product Review and/or Sign Up for Our Newsletter so we can send along the promotional code.  Thanks in advance!

An Excerpt from the September 2014 IAS Trucker Newsletter….  Sign up Here

In a day and age when impressions are gathered in 140 characters and time is managed down to the minute, versatility and convenience are especially valuable. That’s why many of our customers choose The Trucker® Series. Our ladders are easy and safe for any truck driver or style.

The shining example we have mentioned before. The Trucker is the Safety Best Practice at United Rentals. With over 800 locations, that is no small feat. Still, we’re proud to serve companies across the country and in dozens of industries. We want you to know that this isn’t just brash talk. The Trucker Series ladders have exceeded even our own expectations as we have grown over the years.

Continue reading The Trucker Newsletter: Fleet Friendly Trucker Access

ASSE Safety Conference 2014, June 8th-11th in Orlando, FL

The ASSE Safety Conference 2014 is set to kick off Sunday, June 8th at the Orange County Convention Center (West Building) in Orlando, Florida. The annual event features a complete set of seminars, roundtables, and events that only an organization such as ASSE can offer.  The conference schedule is packed with opportunities for industry members, students, executives and other interested parties to learn, network, and enjoy a weekend in sunny Florida. Scheduled sessions are categorized based on experience level to help attendees target events that best suit their skill level and knowledge.

Safety 2014 Conference Events & Seminars

Pre-Conference Safety Training Seminars for ASSE Safety Conference 2014 began on June 5th and continue through Sunday June 8th for those arriving early . Group Meetings for industry members occur in the early evening on Sunday and Monday to provide the opportunity to network and collaborate.  The events end on Wednesday June 11th, with the morning highlight being an Executive Summit at 9:15 AM.  Events are structured for a variety of personalities, including a Golf Outing on Sunday, NightOut at WonderWorks, WISE (Women in Safety Engineering) Retreat, and daily Wellness Walks.

ASSE Safety Conference 2014 Trip Planning

We encourage attendees to download the Safety 2014 App to plan your agenda, view maps and guides, take notes, and more.  Prospective attendees can register online and plan lodging and shuttles at the Safety 2014 website.  Registration fees include group discounts, member/non-member rates, and rates for attending only a portion of the event.  The ASSE Safety Conference 2014 customer service line is (847) 699-2929 and will be available until 5 PM Friday for last minute questions.  The Safety 2014 site also provides a convenient FAQ sitemap with answers and links to any foreseeable topic.

Visit IAS at Safety 2014 Booth #532

Visit IAS at ASSE Safety Conference 2014 at Booth #532IAS will be attending the ASSE Safety Conference 2014 and exhibiting The Trucker Series of Ladders.  Products available for exhibit will include Trucker LaddersWork Platforms, and Ladder Storage Racks.  We will have multiple representatives available to provide specifications and other details.  Our Custom Product Development manager will also be on hand to discuss any safety access needs you may have.  We hope to see you there!

OSHA National Safety Stand Down to Prevent Falls in Construction

OSHA has produced a number of resources in support of the national Fall Prevention Campaign since its inception in 2012.  Perhaps the best opportunity for businesses to show support for this important OSHA initiative will arrive in June 2014 via the National Safety Stand Down for Fall Protection.  OSHA is encouraging construction professionals nationwide to halt work activity during the week of June 2nd  for the purpose of dedicating time to educate workers about the importance fall protection safety.

Preventing Falls in Construction - National Safety Stand Down

OSHA Fall Prevention Safety Stand Down

Employers, contractors, trade associations, government affiliates, unions, and professional societies are all encouraged to participate in the nationwide Fall Prevention Safety Stand Down event.  OSHA is even providing a Certificate of Participation for employers that provide feedback to OSHA about their participation by July 15th.

Topics of discussion during your stand down event may include safety topics such as ladder safety, fall protection equipment, or scaffolds safety.  Participants are invited to discuss work hazard identification and risk management, fall prevention best practices, and company safety policies.  Stand Down for Safety will provide the opportunity to directly discuss a preventable and prevalent cause of death or injury in construction.

National Safety Stand Down Resources

In addition to the opportunity for businesses and organizations to take part in the National Safety Stand Down, OSHA will be sponsoring events nationwide and has provided free education and training resources in support of the cause.

IAS will be participating in the OSHA Fall Prevention Safety Stand Down 2014 and hope you are also excited to take part.  We encourage you to share your Stand Down stories with us and invite you to call our office at (800) 388-6884 for the opportunity to collaborate, motivate and celebrate our mutual interest in preventing falls.

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.

Workers Comp EMR Risk Management Sample Case

EMR, or Experience Modification Rate, is the most direct method of determining the effect that claim history has on the annual premium a business pays for workers’ compensation insurance. In technical terms, it is defined as follows.

The adjustment of annual premium based on previous loss experience. Usually three years of loss experience are used to determine the experience modifier for a workers’ compensation policy. The three years typically include not the immediate past year, but the three prior. Source: http://en.wikipedia.org/wiki/Experience_modifier

An average Workers Comp EMR rate is 1.0. In essence, an average EMR means that the actual losses during a 3 year period is equal to the expected losses for that period. Since EMR functions as a multiplier, a company with an average EMR rate will pay precisely the calculated premium based on industry, number of employees, and other risk factors. From a work safety perspective, it would appear that these companies are effectively but not optimally preventing work injury hazards that drive EMR risk.

A Sample Workers Comp EMR Calculation

Workers’ comp EMR rates are lower or higher if a business incurs total losses that are lesser or greater than expected losses in the applicable 3 year time period.  For example, a company with more losses than expected may have an EMR of 1.1, and thus their premium is 1.1 times the base premium for their business. At the same time, if that business experiences fewer losses over the next 3 year period, their EMR may be 0.9 and they will pay less than the base premium.

Workers Comp EMR rate variations and resulting premiums

Minimum Workers’ Comp EMR and Controllable EMR

EMR values can and often do vary more than 0.1 above or below average.  Each business has a minimum EMR that they can strive to reach in order to pay their lowest possible workers comp insurance premium.  If Company XYZ has a Minimum EMR of 0.85 and a current EMR of 1.1, they have a Controllable EMR of 0.25 [1.1-0.85].  Here is where the bottom line effect should get the attention of business owners, as seen below.

Minimum EMR and Controllable EMR rate combine to provide total workers comp EMR rate

Effective Safety Reduces EMR Risk and Saves Money

Effective work safety and EMR risk management has many positive effects.  Improved morale, hiring and employee retention advantages, lost time reductions, and project timeline improvements to name just a few.  While these factors are difficult to monetize, the bottom line effect of improved workers comp EMR and resulting workers’ comp premium savings illustrates how effective safety can be at providing long term profit advantages and improved cash flow. It’s clear that from a financial perspective, managing work safety is a win-win for businesses of all sizes or strategies.

Learn how to Lower Your Workers Comp EMR