Tag: Workers Comp Safety

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.

Work Injury Prevention Programs

Injury prevention programs have led to a significant reduction in workplace injuries while contributing to improved productivity, reduced turnover, improved OSHA compliance, reduced worker’s compensation claims and premium rates, and higher employee satisfaction.  The costs of a worker injury can be devastating to individuals families and affect businesses on multiple fronts.  In 2009, worker’s compensation benefits paid totaled $58 billion, and indirect costs have been estimated at 1.1 to 4.5 times the direct cost.

Indirect Costs of Worker Injury

  • Wages paid to absent, injured workers
  • Time lost due to work stoppage following injury
  • Administrative time processing injury-related tasks
  • Employee training and replacement following an injury
  • Productivity loss due to new employee training
  • Replacement cost for damaged material and equipment

Source: OSHA Injury and Illness Prevention Programs

Injury Prevention Programs: Effective and Scalable

As of 2012, 34 states, and countries around the world, have instituted required or incentivized injury prevention programs.  The results of state programs are remarkable; work injury rates have been reduced by as much as 60 percent.  Participating businesses have reported additional benefits and some have even encountered more sales opportunities due to their commitment to safety.

 Despite the evidence, many businesses are slow to adopt injury prevention programs.  The perception that implementation will be costly and burdensome, particularly for small businesses, can be difficult to overcome.  The reality has been quite the opposite.  Injury prevention programs are scalable when business owners focus on basic tenets: leadership, participation, hazard identification and prevention, training, and continuing improvement.  The effect on the bottom line is also a positive, due not only to reduced workers compensation premiums and payouts, but also indirect morale, productivity, company image, and process improvements.

Mandatory Policy or Incentivized Benefit?

In a 2012 OSHA white paper, the effect of state programs was reviewed and the results are of interest to businesses considering an injury prevention program.  Incentivized programs in Colorado, Massachusetts and North Dakota resulted in noticeably higher effectiveness compared to mandatory programs in other states.  By providing a worker’s compensation premium reduction incentive,  states reduced work injury by at least 20%, compared to mandatory programs with  10-20% reductions.

In addition to the basic principals of injury prevention and company-wide safety commitment, these results may be a factor to consider for businesses seeking to maximize the effect of injury prevention programs.  Employees who believe their management team cares about safety risks are more motivated, aware, and productive, leading to advantages above and beyond cost benefit.  Anyone who has held a management position knows that while blunt force may get the job done, it often comes with costs ranging from employee resentment to undermining the system.

Incentivize to Promote Safety Culture Investment

Incentivized programs may help to avoid unintended indirect costs while still reaping the benefits.  By incentivizing safety initiatives, employees are more likely to perceive safety as a culture as opposed to a business owner’s cost saving agenda.  Further, incentives will help to communicate safety as a company value with a higher purpose than simply complying to policy. Providing incentives for safety could be based on Key Performance Indicators constructed from hazard assessment initiatives and include cost savings sharing.  Employees that are motivated by incentives will perceive safety not as a management priority but as a mutually beneficial investment.

Protect Workers from Falls for Risk Management ROI

Fall protection is a topic that small business owners often overlook. It may seem taxing to invest in equipment that provides safety features such as three points of contact, slip resistant flooring, and safety guardrails, but a reassuring way to look at it is as an ROI investment. The potential for employees to fall and injure themselves, particularly at heights greater than 4′, is a significant cost management risk which can be mitigated at marginal investment cost. Consider the following risk factors associated with failing to protect your employees from injuries resulting from falls.

  • Workers Comp Claims: The cost of broken bones is one of the most expensive worker’s compensation claims.
  • Insurance Premium Rates: When an employee is injured at work, Workers Comp premium rates may  increase as your claim risk factor is increased.
  • Lost Time: In addition to monetary costs associated with injuries and insurance claims, lost time while an employee recovers may lead to staff shortages.

Build Culture: Safe Workers Work Harder

Another factor to consider is employee morale. Small businesses must function as a well-oiled machine to meet the demands of a growing customer base. Even the slightest hit to morale resulting from an injured co-worker can affect performance, quality and timelines. Research has shown that a safe working environment supports optimum productivity and employee satisfaction. Taking steps to protect employees that work at heights will provide risk management benefit and support your goal of attaining high productivity.