Selling Safety and What it Means for Your Workers’ Compensation Rates

At OH!Manufacturing we are here to help manufacturers in the Central Ohio region grow and expand. Among other things, we do this by collaborating with industry partners and connecting manufacturers with people and programs that will help their businesses grow.  We do this through one-and-one consultations and through broad-based information sharing. When our partners send us good articles like this one, we share.

The following information is brought to you compliments of SafeX.

Does your company look at safety as just another cost of doing business or means for staying compliant? After all, wouldn’t your company be more productive if it didn’t have to worry about lengthy H&S regulations, training requirements, budgeting challenges and the possibility of a surprise OSHA visit? The answer is, quite simply, no. The fact is, employers can significantly reduce workers’ compensation costs, turnover rates and absenteeism, all while increasing productivity and seeing positive bottom line results through one simple outlook: Safety is priority.

As manufacturers attempt to control workers’ compensation costs and reduce impact on the bottom line, consistently investing in safety will help to achieve much more than preventing injuries, fatalities and citations. According to a 2001 study conducted by Liberty Mutual Insurance Company, 61 percent of executives surveyed say $3 or more is saved for every $1 invested in workplace safety. Further, 95 percent of business executives reported that workplace safety has a positive impact on a company’s financial performance.

Developing and implementing effective safety programs and establishing a culture where all levels of management are actively engaged in safety are two keys in preventing and mitigating workers’ compensation claims, which in 2007, cost employers an average of $53,700 per claim. And that doesn’t take into account direct and indirect costs. Indirect costs include administrative time to process the claim, schedule disruptions in productivity, production loss and taking time to hire and train replacement workers.

By implementing a strong safety culture you can reduce workers’ compensation costs, increase morale, increase productivity, decrease absenteeism and minimize wasted time.

How to “sell safety” in your organization

  • Identify the outcome

Whether it’s an incident free work environment or zero spills/pollution, visualizing your intended outcome, establishing measurable goals and clearly communicating this information will help your company to better identify the necessary steps to reach these goals.

  • Establish expectations

Establishing specific expectations and using performance measures such as leading and lagging indicators will help you to evaluate both the bottom-line results of safety and how well your facility is doing at preventing accidents, as well as the effectiveness of your safety programs.

  • Educate and communicate

Be sure to minimize any technical jargon when communicating this information and put it in understandable and relatable terms for your employees. Additionally, tracking and reporting costs and savings can help to emphasize the importance of safety performance and gain management’s support.

  • Find the motivation

What’s in it for your company? Your employees? Potential cost savings, employee health and well-being, increased productivity, etc.

  • Demonstrate

Implementation of safety programs and culture should be executed from the top down. If management isn’t on-board with the role of health and safety, then your employees won’t be either.

  • Hold accountable

Building accountability is an essential element for the success of your safety programs. Accountability in safety begins like accountability in any part of your business and applies to all members of your organization.

A strong culture of safety and effective safety programs can have a huge impact on your company’s workers’ compensation rates and productivity, but getting these programs in place isn’t easy. Making safety a priority and investing in your workplace’s safety will not only help your bottom line, but also develop a reputation internally for caring about your employees and doing what is right.

Is reducing workers’ compensation costs important to you?   Would you like help instituting a more robust safety policy? Contact OH!Manufacturing. We’ll help connect you to the resources you need to “sell safety” in your organization – and much more.

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