robintek

Workers’ compensation cost containment begins with loss control and safety fundamentals. The frequency of accidents – how many per hours worked/payroll/days – is a much better safety indicator than the severity – extent of injury – of the injury.

Theoretically, if the company has many accidents, it’s a function of time before they have a bad, or even catastrophic, one. It may just be bad luck to have one injury, and it’s a bad one.

Personal protective equipment is designed to reduce the severity of injuries while safety training tends to reduce the frequency. Therefore, safety training, job ergonomics, and awareness reduce injuries, and workers’ compensation costs, most.

The experience rating formula reflects these philosophies. The rating system compares expected losses to actual losses and sets a modification as a variance from that norm.

The “exposure unit” for workers’ compensation is payroll in one hundred dollar increments. Historical losses for an industry are compared to historical payrolls to determine a rate of loss per hundred dollars of payroll. A severity discount is applied to the expected losses. This rate is not your premium rate, just the rate of expected losses. The difference in the two rates includes the cost of claims service, loss control, administrative costs, sales commissions and taxes.

Actual losses below a certain severity threshold, and that varies state to state, are added together. In addition, severe claims are individually discounted on a scale from the threshold rate to a state maximum. These claims are added to the undiscounted frequency claims value. The resulting number is compared to the theoretical average expected losses as actual over expected. A three year historical period is used.

The resulting ratio is the experience rating. Poor experience will result in a number greater than one. Good experience, below one. For example, a company has an experience modification of 1.15. That company is paying fifteen percent more for workers’ compensation than his average competitor and forty three percent more than a competitor with a .8 modification.

That’s additional cost of labor. That’s a more satisfied worker who isn’t at risk of injury. That’s a competitive edge that safety provides by reducing the frequency of injuries first.

Not everybody reveres safety as we do. Keep an eye out for those contractors on your site. If you spot them, avoid them like the plague.

When the masonry contractor throws his mud pan off a scaffolding without looking, or an electrician is standing in a puddle, it’s time to clear the area.

But less dramatic concerns include spreading bad habits, distractions, and job shut downs.

Somehow bad habits spread quicker than good ones. If the crew next to you operates outside your comfort zone, speak directly to the on-site supervisor and request corrective actions. Be sure your crew sees this interaction. If this confrontation does not result in safer conditions, move your crew to an alternate work area if at all possible. Demonstrate safety as the number one priority.

Suppose the other crew is not wearing protective eyewear. Maybe your crew is unlikely to get injured as a result, but how about your liability exposure? Your shard lands in their eye, and you’re paying regardless of their lack of diligence. Get the general contractor involved if necessary.

Your well-trained crew may be distracted by another group acting unsafely. Distractions create potential injury scenarios. The site moves ahead more productively when people work without a sideshow.

Severe infractions that can bring OSHA regulators or local officials in to close a site. Without being in the wrong, site closure costs you money. Report poor work conditions to the site supervisor immediately. Of course, document reasons and requests whenever you demand safer operations.

Remember: you are responsible for the safety of your employees and the profit of your company. Unchallenged unsafe conditions leading to site closure does not protect either employees or profit.

Take in the big picture when assessing your own site safety. Your crew works within a system. If one part of that system is unsafe, the site is unsafe. Do what you can to fix those situations.

Control traffic through all work areas to prevent distractions, overcrowding or unsafe conditions. Two perimeters should be guarded: the entire work space whether a construction jobsite, a restaurant kitchen, or a manufacturing floor; and the immediate work area where your crew or individual are working.

The safest work space is a very controlled environment. Jobs are dangerous by nature and require training and equipment to be done safely. Unfamiliar or unwanted people do not belong in the work space because they bring uncertainty and bad habits with them.

Labor intensive work sites should be designed with one entrance and many exits. Everyone entering needs to have proper safety gear and training regarding operational safety awareness. Part of that awareness is the sanctity of the individual or team work space.

The best example is excavating. While an excavator is loading trucks, people need to be further than the reach of the boom, in a complete circle around the machine. While a good operator can make an excavator look graceful, they are a hard hitting piece of equipment best avoided.

Manufacturers divide floor space into units. Only knowledgeable mechanics need to be in that space.

Prep space and cooking space is often divided in kitchens so knives are only used in a safe area and cross contamination is minimal.

Overcrowding creates poor work conditions and leads to injuries. Nothing is more frustrating than being bumped around while you’re trying to work. Adequate space leads to efficiency and safety. And reducing distractions keeps focus on task.

Every shift, supervisors should check the security of the gross perimeter and assure it has not been breached. Then, within the space where employees operate, the individual or manager should police traffic into their space. Control both perimeters for effective safety.

Having personal protection equipment is merely a good beginning. In order to work properly, employees must take the time to adjust the fit for the most effective use.

Harnesses must be worn while working at heights. All connection points should be snug but not restrictive. The harness must be tied off with a leash to an anchor, such as a chimney on a roof. The leash should be long enough to not restrict work, but not too long.

Hard hats must be snugged to the top of the head. Adjust the head band accordingly.

Eyewear needs to cover the entire eye including the sides. The fit should prevent slippage.

Footwear, especially steel-toed shoes or non-skid soles, still need to be comfortable for a long day of walking and working.

All equipment should be checked daily before work begins. If the fit isn’t correct, take measures to correct the defect.

Personal protection equipment is vital to an employees safety, and should become part of their everyday uniform. It needs to fit correctly and comfortably for this reason.

Make this routine part of basic orientation training. Then reinforce it with tool box safety topics.

Proper clothing is also important. Loose fitting clothing or neckwear can catch in machinery and cause serious injury. Construction sites require long pants and shirts to prevent cuts and scrapes. Gloves should be worn for many duties on a jobsite.

Many manufacturers and service businesses require uniforms. Uniforms are a good idea for several reasons. First, the company can control materials and fit which reduces injuries. Second, it is easier to control unwelcome traffic on the site. Third, wild clothing does not distract other workers.

Protective clothing and equipment reduces the number of and severity of accidents. It pays to take a few minutes to assure proper fit and function.