Safety Training For All Employees is a Great Investment — Even Part Time and Temporaries

Workers Compensation accidents do not differentiate between part time workers and full time workers. In fact some studies point to part timers as more accident prone on many jobs.

Interestingly.  in a   recent  poll, 27% of small business owners said that they do not offer workplace safety training for new student workers they employ, and among those who do offer workplace safety training, only 52% make it a requirement.

Below are 4 Tips to better work place safety for all employees.

1.  Provide education and training

Business owners should provide employees with information and training on their injury and illness prevention programs. These training sessions should especially be held whenever new substances, processes, procedures or equipment are introduced into the workplace.

Proper training includes the identification of potential hazards, preventative measures for common accidents, as well as what to do if an accident occurs. EMPLOYERS also suggests that business owners train employees in a language they understand, especially in a bilingual environment

2.  Identify and assess potential hazards

Business owners and managers should identify and document potential hazards, as well as put proper safety procedures in place before employees use equipment or materials in the workplace.

By establishing simple safety procedures, such as requiring rubber-soled shoes to be worn by all employees in restaurants and warehouses, employers can help prevent accidents. However, it is not enough to establish a protocol. Employers must document these procedures because it establishes a record that can be referenced in the event of an OSHA inspection or insurance audit.

3. Enlist management and employee participation

Employers should encourage employees to provide feedback regarding the safety situation in the workplace environment. At all levels, employees should be involved in establishing, implementing and evaluating safety programs.

This also means that managers are not exempt from safety procedures. Employees in authoritative positions are responsible to lead by example and should be held accountable for workplace safety

4.  Evaluate program effectiveness 

Business owners should routinely evaluate their workplace safety programs. An annual review is a great way to routinely assess the program, but employers should also consider reviewing their workplace safety program whenever new or previously unknown hazards are discovered.

I hope these tips help you control workers compensation costs. Please feel free to contact me at 202-302-1212 or E mail me  at david@StaffingCompSolutions.com for a FREE workers compensation  quote that can  reduce and contain your costs.

All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor  2014 Conference Booth 1123
California Staffing Association Member

StaffingCompSolutions.com—- Workers Compensation Specialists and Staffing Business Consultants For Over 25 Years.

Workers Compensation Rates Moderating for Staffing Companies – But VERY Slowly and VERY Selectivity

Workers compensation rates are continuing to increase this year, but at a slower rate than 2013, according to an analysis released this week by Moody’s Investors Service Inc.

Rate firming is expected to slow to 5.5% this year, down from 8% in 2013, Moody’s said in Monday’s report. Still, this year’s rate increases are expected to remain “sufficiently above loss-ratio inflation” of about 2%, allowing an underwriting profit for 2014.

“However, our rate surveys suggest a reversal in risk appetite for WC in 2014, with carriers seeking to retain profitable accounts and competing for new business, which will dampen the pace of rate increases,” the report reads.

Moody’s expects that workers comp insurers will have a combined ratio of 98% in 2014 and 96% in 2015 if current industry trends continue, including rate increases and a reduction in taking on unprofitable accounts. That’s compared with a combined ratio of 103% in 2013.

Reserves for workers comp insurers “appear about break-even to modestly deficient for the industry,” Moody’s said. The use of predictive modeling in workers comp could lead to more stable loss reserve estimates in the future as the comp industry accepts such technology on a wider scale, according to the analysis.

This trend of moderating rates seems to indicate that if you are a staffing company with very few and small losses, there are a variety  of workers compensation program options available.  If your are like most staffing companies, workers compensation will continue to be a challenge and rates will probably rise again in 2015.

Please contact me at david@StaffingCompSolutions.com and visit our web site at www.StaffingCompSolutions.com for a FREE workers compensation quote.

All the  best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor  2014 Conference Booth 1123
California Staffing Association Member

StaffingCompSolutions.com—-  Workers  Compensation  Specialists and Staffing Business Consultants For Over 25 Years.

Warehouse Safety Is No Accident

Careful planning and a dedication to safety are top priorities for keeping warehouse workers injury-free. Here is your no-slip, no-trip, ergonomically correct guide to warehouse safety.

Where most warehouse visitors simply see shelves, pallets, and boxes, Dixie Brock sees danger. In fact, Brock glimpses danger wherever she looks.

It’s not that she is easily frightened or overly cautious. Brock sees danger because it is a key part of her job as national safety and workers compensation manager for APL Logistics, an Oakland, Calif.-based transportation services provider that manages more than 100 warehouses worldwide.

“I constantly analyze accidents,” Brock says. “I study them, search for causes, and try to find ways to prevent them.”

More warehouse operators need to think like Brock, says Gary Gagliardi, vice president of Safety Resources, a safety consulting firm located in Indianapolis. While companies tend to focus their safety efforts on manufacturing sites and transport vehicles, warehouses also require attention, he says.

Yet, when it comes to warehouse safety, employees and management often tug in different directions. “Workers concentrate on going home with their fingers and toes intact,” Gagliardi says.

“Managers are also concerned about safety, but they focus more on where the company is headed, and how profitable it can be.”

To make sure that a warehouse is both safe and efficient, managers and workers need to pull together to spot dangerous practices and plan ways to eliminate threats.

“Companies need a culture of safety,” says Gagliardi. “Creating a safe work environment requires a good deal of effort, but it brings benefits to both workers and management.”

ADDING INSULT TO INJURY

Warehouse mishaps tend to be less severe than most manufacturing- and transportation-related accidents. Yet a series of relatively minor incidents can still seriously injure employees and lead to lost productivity, higher insurance bills, and government fines.

“The primary injuries occurring in a warehouse stem from lifting, straining, and turning,” says Joel Anderson, president and CEO of the International Warehouse Logistics Association, a non-profit organization based in Des Plaines, Ill., that represents more than 500 third-party warehouse and logistics service providers.

Similarly, APL reports these top three injury categories at its warehouses:

  1. Slips, trips, and falls.
  2. Ergonomic-related pains such as lifting, reaching, pulling, and pushing.
  3. Material handling incidents such as dropped boxes and forklift accidents.

Although not particularly severe, warehouse accidents are numerous—the warehousing and storage industry experiences nearly 15,000 injuries and illnesses each year, according to the U.S. Bureau of Labor Statistics.

To keep a lid on accidents, warehouse operators should stress worker training and establish safety best practices, says Bob Shaunnessey, executive director of the Warehousing Education and Research Council (WERC), an Oak Brook, Ill.-based organization dedicated to warehouse management and its role in the supply chain.

For most warehouses, forming a safety committee is the first step toward implementing enhanced safety procedures.

A safety committee’s members are usually selected from specific organizational groups—including warehouse floor workers, shift supervisors, and department managers. This approach gives everyone a voice, but keeps the committee’s size to an effective number of participants.

“Safety committees are a common practice,” says Shaunnessey. “In most cases, when management supports the committee, workers are likely to gain a safe work environment.”

Safety committees should not be confused with safety meetings. A safety meeting usually includes all floor employees, as well as a management representative, to ensure that key issues are addressed.

“Typically, a safety committee is an effective safety management tool for large employers, and safety meetings are effective for small employers,” notes Shaunnessey.

OSHA’S IMPACT

One pivotal player in warehouse safety is the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA), the federal agency responsible for ensuring safe workplaces.

OSHA exists to make sure businesses that do not take safety seriously won’t imperil their employees. Many warehouse operators take a skeptical view of OSHA, believing they can maintain a safe working environment without government oversight.

Warehouse operators that maintain a safe workplace generally have little to fear from OSHA, says Alex Sierra, health, safety, and environmental manager for Fluor Constructors, the construction arm of Irving, Texas-based engineering, procurement, construction, and maintenance service company Fluor.

“Warehouse managers need to realize that investing in OSHA compliance, and safety in general, is a smart move,” says Sierra. “The average cost of a recordable injury in the United States is $35,000, according to the U.S. Department of Labor. This expense directly impacts a company’s bottom line, as well as workers’ compensation and productivity costs.”

The best way to avoid becoming entangled with OSHA is by not attracting attention to your organization.

“If companies report recurring accidents, or other problems that attract OSHA’s attention, they are usually inspected,” Shaunnessey says. “During an inspection, OSHA may find unsafe practices and require the employer to correct them. If inspectors find egregious safety violations, they often impose fines.”

Warehouse operators who comply with OSHA safety guidelines don’t have much to worry about, says Gagliardi of Safety Resources.

“Generally, unless a ‘red flag’ pops up, OSHA does not have the manpower or the time to inspect a lot of warehouses,” he explains.

SAFETY SAVINGS

An emphasis on safety can generate cost savings—both direct and indirect. Warehouse operators who take the time to analyze their safety training and practices can reap financial benefits, says Patrick Floyd, senior executive vice president of operations for Total Logistic Control (TLC), a third-party logistics provider headquartered in Zeeland, Mich.

TLC, which operates 83 distribution centers nationwide, implemented a comprehensive safety plan that generated fast and measurable results.

“TLC reduced its recordable incident rate from 11.5 in 2000 to 3.63 in 2006,” notes Floyd. “This helped reduce workers’ compensation costs from $2.53 per man-hour to 30 cents per man-hour.”

The 3PL also makes safety an essential responsibility of its facility managers, office managers, and other supervisory personnel.

“Our managers’ annual key performance indicators are based upon how well their facilities comply with OSHA, safety, and process improvement,” Floyd says. “They cannot ignore safety concerns. If they do, it affects their performance as a leader and it affects their compensation.”

To keep safety top of mind for employees, training needs to touch on all key areas that affect warehouse safety, notes Brock. APL, for instance, offers separate programs on topics including slips and falls, forklift operation, heat exhaustion, ergonomics, and hazardous materials.

“Safety is not separate from what warehouse employees do every day,” she says. “Safety is a key aspect of how they do their job, and that’s the mindset they must have.

Please contact me at david@StaffingCompSolutions.com for a workers compensation quote and visit us at www.StaffingCompSolutions.com

All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member

Skating On Very Thin Ice – An Owner Risks Her Company Because She Can Not Understand the Current Work Comp Market

I recently quoted a 10M Light Industrial staffing company that had been without workers compensation for about 90 days when they called Work Comp Staffing Solutions. They had been cancelled by Travelers Insurance company in March, and had been shopping for a new policy with their P & C Agent since then.  Their losses were about 250K a year on a 500K annual premium. Many claims were still open.

After 7 days, Work Comp Staffing Solutions found a Professional Employer Organization (PEO) quote for the company.  The owner felt that, despite the PEO’s rates/terms being favorable (pay as you go and no deductible) , they would eventually find a direct-cheaper policy– so they were told by their P & C Agent who had originally secured the Travelers policy.  Even though they had been shopping for the last 90 days.

The owner had incredible difficulty accepting the fact that direct carriers do not want most staffing risks these days. She could not understand that the staffing work comp market had changed greatly since they got their original policy about 2 years earlier.

Now the owner is clearly putting her company at risk each day on wishful (and I would say very unrealistic) thinking.

If you find yourself without compensation, or your traditional Insurance Agent unresponsive about today’s market conditions, call me and hopefully I can help. You can reach me at david@StaffingCompSolutions.com and www.StaffingCompSolutions.com

All the best
David Schek
President
StaffingCompSolutions.com

American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member

StaffingCompSolutions.com—-  Workers  Compensation  Specialists and Staffing Business Consultants For Over 25 Years.

What Drives Workers Compensation Rates?

Most every staffing company owner thinks about this question at least one time a year — which is usually at renewal time.

NCCI answers this question in a recent report that they published.  Here is a link to this report

http://www.workcompwire.com/2014/06/new-ncci-report-understanding-what-drives-the-underwriting-cycle/

The Report lists  these 5 key drivers:

  • Cash flow underwriting in pursuit of investment gains is more of a driver of the underwriting cycle than excess capacity.
  • As investment gain opportunities deteriorate, disciplined profitable underwriting results materialize.
  • As interest rates decrease, hard markets follow. As interest rates increase, soft markets follow.
  • Underwriting results are the key driver of the direction of return on surplus.

While a companies loss history is still important in evaluating each companies rates, the overall investment environment may be equally or more important.  According to the NCCI report, with interest rates still very low, the carriers are still not receiving sufficient income from their market investments, causing them to depend on higher rates/ income from their policy holders.

This probably means that higher work comp rates are here to stay for a few more years, given that the current inflation indicators are pointing to low interest rates.

This also means that staffing companies will have to shop extra hard to get the best rates possible. They should also prepare for more rate increases over the next few years.  If you are shopping for workers compensation, please contact  me at david@StaffingCompSolutions.com and visit us at www.StaffingCompSolutions.com

All the best
David Schek
President
StaffingCompSolutions.com
American Staffing Association Member
ASA Exhibitor for Annual 2014 Conference
California Staffing Association Member

StaffingCompSolutions.com—-  Workers  Compensation  Specialists and Staffing Business Consultants For Over 25 Years.