Does saving money and decreasing employee turnover interest you?

WORKING SAFELY BY STEVE SAYER

(The views and opinions expressed in this blog are strictly those of the author.)

An Experience Modification Rate (EMR) has a significant impact on the worker's compensation insurance premium of a business in the USA.

The EMR is a metric that insurers use to calculate worker's compensation premiums; it takes into account the number of claims / injuries a company has had in the past and their corresponding costs.

An EMR of 1.0 is the benchmark average --- if your company's EMR number is lower than average, (e.g. less than 1.0), your worker's compensation premium will be lower than average. An EMR number greater than 1.0 will result in a higher than average premium.

In California and other selected states that have their own state OSHA, an EMR of 1.20 or higher allows OSHA to show up, unannounced, and audit your company.

Since the last century, I’ve been questioned on a wide range of subjects involving industrial safety and health. 

Hands down the most frequently asked question has been; 

“How can I lower accidents at my plant? My workers comp costs continues to kill me!” 

Such companies may turn out to have:

• A workers modification rate measuring from here to the Crab of Nebula and back 

• Annual employee turnover rate$ in excess of 90 to 110 percent 

• Payed enough money towards their in$atiable workers compensation premiums to buy a fleet of luxury yachts that would have made even the late Aristotle Onassis cringe with jealously. 

If a 3rd party were hired to investigate such companies, it wouldn’t be uncommon to discover that these companies have written industrial safety and health programs: including pertinent policies and procedures.

However, those programs and their policies and procedures would be found on the company’s priority back burner and largely forgotten; or simply buried 6-feet under - until OSHA shows up.

Most tragic would be that no one in management or Human Resources (if they even have one), would have any scintilla of what his or her own policies and procedures are regarding OSHA safety.

Lack of tip-top employer commitment / leadership is usually followed by sparse, if any, employees training which are the two (2) critical control components that are usually MIA (missing in action) when companies experience chronically high incidences of injuries.

It’s the inherent, legal {and moral too!} responsibility of the employer to provide a safe and healthy working environment for all employees as per the OSHA Act of 1970.

This responsibility and ultimate accountability has been etched in granite since the middle of the last century.

The Occupational Safety and Health Act of 1970 was passed by Congress and signed into law by then President Nixon to help preclude workers from being killed or harmed while at work.

Section 5 of the OSHA Act of 1970, known as the General Duty Clause (GDC), plays a defining role in preventing industrial deaths and injuries:

“(a) Each employer (1) shall furnish to each of his employees and a place of employment which are free from recognized hazards that are causing or likely to cause death or serious physical harm to his employees; (2) shall comply with safety and health standards promulgated under this act. 

(b) Each employee shall comply with occupational safety and health standards and all rules, regulations, and orders issued pursuant to this act, which are applicable to his own actions and conduct.”

Prudent employers have company policies that apply progressive discipline if an employee fails to follow the safety and health programs that they’ve been trained and educated to follow.

If employers do not provide the needed leadership, capital and resources to attain and sustain a safe and healthy working environment, then more of the same shall be expected.

There are many companies, regardless of industry, that have outstanding and highly effective safety and health programs in place and working as authored and intended. They’ve followed the intent of the timeless and ever expansive GDC of 1970 and have - by sound management and hard work - woven industrial safety seamlessly into their company’s DNA fabric.

Such companies have:

• A manageable workers modification rate while $aving money
• Annual employee turnover rate$ are much lower than their comparable competitors
• Diverted large sums of money back into their company rather than going to insurance premiums that would have certainly made even Aristotle Onassis happy.

Their winning components?

1. A 110% steadfast commitment of the employer to consistently provide the multiple resources needed for a safe and healthy working environment:

2. A well-designed and continuous employee training and education program.

Not surprisingly, additional dividends are spontaneously generated at the confluence of lines 1 and 2 such as - marked increase$ of employee productivity, quality control, lowered operating co$t$ and higher employee morale.

Tru$t Me.

It all work$ - and then $ome.

Have a great Fall weekend everyone.

And - God bless everyone affected by Hurricane Ian - and of course - the innocent people of Ukraine.

Prayers coming your way from all over the world.

Count you blessings everyone.

Currently, Steve Sayer is a food / beverage and occupational safety consultant to OSHA, EPA, GFSI, USDA / FSIS and FDA, and a technical writer for multiple industries, as well as a part-time maintenance worker for California State Beaches.

5/22/2015 (Revised 09/12/2022)

XTRA XTRA XTRA

WORD OF THE DAY

PERTINACIOUS

"It finally got to the point that I had to terminate his employment: he was just so pertinacious about the old rules that he wouldn't follow the revised protocols."