Five Secrets to Profit Big Through Employee Safety

Many times, the costs of just one injury can make the difference between annual profit and loss. For example, how many beds would an assisted living facility (ALF) need to fill for one year in order to offset the cost of one employee strain injury? One? Three? OSHA reports that an average employee strain injury costs an ALF $67,000 in direct and indirect costs. So based upon the average ALF profit margin per bed, it would take six to offset those costs.

Check out OSHA’s workers’ comp cost calculator on our web site to estimate the costs of injuries in your industry.

Payday’s team of safety experts helps companies use employee safety as a way to save big. In fact, we helped one ALF drop their total claims based on lifting and handling by $170,000, and slips, strains and sprains by $20,000. In total, Payday was able to save this client more $200,000 in just six months by implementing the following secrets!

Five Safety Secrets

1) Know Your Loss History

Check with your insurance carrier or OSHA logs to analyze your loss data for the previous years. Take note of the areas where your claims were made. These might be slips, strains, or lifting injuries. These areas will indicate where to focus your attention.

2) Uncover Workplace Hazards

Set aside time to observe what specific activities your employees are really engaged in and then discuss those activities. This helps to identify existing problems and uncover potential hazards.

3) Develop a Safety Program

Determine and clarify what core policies already exist. If none exist, begin to determine what are the safety goals and standards for all employees company wide. Then customize these standards based upon location. Hazards at a location in Florida may be different than hazards in Colorado. Next, assign accountability so that people are actually responsible for implementing these goals. Finally, set a budget in order to implement. It’s better to invest a small amount to develop a great program than to waste a large amount through even one employee injury.

4) Roll Out Safety Program

There are critical elements to rolling out the program you just developed. The first step is to appoint a safety officer—someone able to relate to both employees and management. Next, schedule roll out meetings whereby the safety plan is communicated and distributed across the organization. Ensure that employees know exactly what is expected.

Upon roll out, it’s crucial to monitor progress. This is more than just measuring incident rates, but should also include monitoring the activities of the organization at all levels: safety seminars, inspections, and coaching opportunities with employees. Finally, employees should be held accountable for implementing the plan and the organization should be committed to continue training.

5) Design a Reward System

An effective way to maintain a great safety culture well beyond its roll out is to offer incentives. At Payday, when we determine that our safety recommendations are made, we offer companies a 5% reduction on their workers’ comp premium. Incentives should also be considered within an organization. Be sure to make time to “catch people doing it right.” Offer verbal appreciation, awards, and special gifts for those found carrying out the safety program.

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