Take Safety to New Heights
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1 Take Safety to New Heights Preserving your Bottom-line with Safety 1
2 The HIGH COST of not having a Safety Program Housekeeping Please turn off cell phones and pagers Kentucky, Ohio, & Alabama CEUs Evaluations & HVAC Comfortech survey forms 2
3 Your Presenters Valerie Stakes Multilingual Training Solutions Matt Prazenka Business Management and Development Our Presentation Part 1 Why safety is so important Risks and exposures Financial & non-financial impacts 3
4 Our Presentation Part 2: What is a Safety Program Where/how to get started The Safety Manual How to create a culture of safety Emphasize Training 3 W s W s and a H Improve safety through incentive programs Why is Safety Important It is the right thing to do Employees to return home safely every night It s s the law Alternative - everyone suffers Creates stability Provides a legal defense 4
5 Risk and Exposures Common misperceptions regarding OSHA & residential/light commercial contractors Most common hazards and accidents in construction - the fatal four : Falls Electrical hazards Caught-in/Between Stuck-by hazards. Most Frequently Cited Serious Violations Fall Protection - Residential construction 6 ft. or more Fall Protection - Unprotected sides & edges Head Protection Scaffolds - Fall protection Aerial lifts - body belt & lanyard OSHA 2006 Data 5
6 Most Frequently Cited Serious Violations Fall hazards training program Scaffolds - access Portable ladders - 3 ft/ above landing surface Scaffolds - platform construction Employee training programs OSHA 2006 Data Financial Impact of Accidents So what do injuries cost us? 6
7 The cost of an Injury Direct Medical Costs Typical cut with stitches Chicago Hospital $ Industrial Clinic $550 Follow up visits multiply costs DOES NOT INCLUDE PAYROLL 7
8 Labor-related related Costs/Losses Cost of labor per technician True hourly cost $25 per hour payroll actually is $48 to $60 cost with burdens Gross margin dollars drop Less resources to pay overhead Labor-related related Costs/Losses Lost Time Wages Insurance company pays initially Added OT for other employees Potential revenue How much are you losing How many new customers are you missing How many can you afford to miss? 8
9 Labor-related related Costs/Losses What if you need to replace talent Tight workforce Limited resources Gen X and Y Long lead time to train Are there people to train? Other Potential Costs Increased insurance costs Insurer most selective Mandatory requirements Mandatory inspections Specific risks and coverage's eliminated Fewer insurance companies out there More niche-orientated to control risks and losses They learn the specific exposures 9
10 Other Potential Costs Your Mod rate goes above 1.05 Lost sales from customers/builders that require a minimum mod rate Some schedule discounts are eliminates Some insurance companies will not even quote Other Potential Costs OSHA inspections and fines You re the Target Elimination from bid list requiring minimum safety record Contractor risk transference program Waiver of WC subrogation Primary and non-contributory clause 10
11 Other Potential Costs Auto accidents that involve third parties Losses can be catastrophic: Threaten the company s s existence Exceeds insured limits Exceeds umbrella coverage Non-financial impact Both the employee and company suffer Employee who is permanently injured Settlement does not replace future earnings Limitation on future potential and jobs Damaged morale Lower productivity Requires compassion an a ongoing relationship to overcome 11
12 Financial Impact Reduction Benefits of light duty Reduces costs Employees learn other skills Continue sense of belonging Provides value to the company pay received And now for the good news: ACCIDENTS ARE NOT INEVITABLE 12
13 A Safety Program A thorough safety program is your road map to success Must establish a safety-oriented culture: Starts at top, everyone involved Everyone plays a role Can not be random or reactive Safety Program Potential risks must be: Recognized Avoided Reduced Anticipated 13
14 Safety Program First Time is an Accident Second Time is Preventable Third Time is Negligence A little Extreme, but take a lawyer s s point of view Safety Program Where/How to get started Perform an internal self-audit Start with losses Manage by walking around, Eyes open Talk to involved people Determine what you have Determine what you need 14
15 Safety Program Where/How to get started Review Set goals and communicate to everyone Determine highest hazards Low hanging fruit Set deadlines and hold them Move down the list for the next one Revisit the list to insure performance Put your Policies & Procedures in Writing How to create a safety manual Off-the the-shelf customizable templates BLR ACCA NADCA OSHA quick-start for small businesses Be specific for your company It is a dynamic document that changes as needed 15
16 The Safety Manual What is in your manual Lockout/tag-out out Hazardous Communications PPE (including respirators) Electrical Safety Fall Protection The Safety Manual What is in your manual Drug testing Driver license and vehicle policy Required training and time frame Safety related incentive program Discipline: Ramifications for unsafe behavior 16
17 Create a Safety Culture Owner/Management must be onboard Empower the people Encourage people to question practices Recognize those who do Look for near misses Review and feedback Create a Safety Culture Quarterly/Monthly Safety Meetings. Keep minutes Task assignment Performance deadlines. Include as part of monthly or weekly operations meeting Bring up often to everyone in small doses Create TOMA 17
18 Emphasize Training: What/When/Who/How New Employees Within days of hire: Cover safety essentials and review through observation and testing Assess driving skills; can they back up a van Obtain motor vehicle report and then every six months Drug Screening Other items as required Emphasize Training: What/When/Who/How Existing Employees: 10-Hour OSHA class Weekly toolbox talks Best practices for tools, equipment and vehicles New products, new tools Hazards as they are identified New PPEs 18
19 Emphasize Training: What/When/Who/How Existing Employees: Defensive Driving Course if: Preventable accident in company vehicle 2 tickets/accidents in 2 years on MVR Under the age of 25 Calls on the how am I driving sticker Perform annual review of critical training Emphasize Training: What/When/Who/How What is Effective Training? Pertinent to the job Must teach hazard awareness Related to common risk and hazards Hands-on, participation-driven 19
20 Emphasize Training: What/When/Who/How What is Effective Training? Do it right, not cheap Scheduled, anticipated, expected. On-going, but changes as required Make it fun Ways to Ensure a Safe Workplace Loss control/management Require monthly loss runs Check and review reserves Review with claims representative Ask questions how they handle a claim Keep a log of all losses reported or not Create and use classifications 20
21 Ways to Ensure a Safe Workplace Light Duty Provide a meaningful and productive tasks Follow-up to determine that task are suitable Employee with injury Follow-up show interest Confirm they are getting the medical treatments Ways to Ensure a Safe Workplace Employee with injury Are they receiving benefits Are their needs being met Provide conflict resolution when issues arise with insurance co. Have resources to recommended Chiropractors Clinics Specialist 21
22 Ways to Ensure a Safe Workplace Accident reporting Standard forms specific to loss Injury Auto Property Disposable or Camera Phones (truck kit) Written Instruction- Both Supervisors and Employee Escalation Levels Ways to Ensure a Safe Workplace Jobsite reviews Owner /supervisor should do weekly job site audits Require third-party validation Check-off sheet of common items Jobsite conditions not in your control Document, report, evaluate and remove employees as required 22
23 Ways to Ensure a Safe Workplace Truck Inspections Drive the vehicle yourself Check general conditions, mechanical, inventory, organization and cleanliness Nothing allowed on dash board and other material secured in cab Ways to Ensure a Safe Workplace Truck Inspections How-am am-i-driving sticker/service Follow employees and observe habits Use GPS to monitor operation Use traffic cones to create a circle of safety when parked 23
24 Incentive Program Recognition Frequent Awareness Competition Always creates and maintain TOMA Incentive Program Always award employees in front of others Recognition from peers is important Monthly $5 Coffee cards McDonalds Starbucks Gas and Go Home Depot 24
25 Incentive Program Giftcard card assortment Big Year end drawing that includes everyone, a REALLY, REALLY big prize A trip Flat screen TV Annual Letter from Owner saying thanks for being safe. Incentive Program Score Card Bowling Game On going reminders of safety Newsletters PR stuffers Clipping of other incidences 25
26 TOMA Program LED signs with changing message Large Exterior banner with annual theme Tote Board Days without lost time accident Days injury-free Days driving safe Parting Thoughts OSHA Consultation services (both Fed & State) Partner not enemy Participation can mitigate penalties OSHA Programs Have solutions for problems you do not know exist 26
27 Parting Thoughts Online Resources ACCA BLR KELLER Presentation and other material available for Download on the Quick Take Away s Set the tone from top down Own the safety program Weekly tool box safety talks Reward people ($5 coffee cards) Track all incidences Focus on repeats accidents 27
28 Luck is where Opportunity meets Preparation L=O+P Let s s be Careful out There 28
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