Did They Get The Safety Memo?… Did They Read The Safety Memo?… Do They Understand The Safety Memo?

Having a successful safety policy for your high turnover hourly workers is only as good as your ability to successfully communicate your policy to these workers.  These hourly workers often make up the line staff in many manufacturing and warehouse facilities as well as in temporary staffing companies that service these companies.  Communicating these important safety policies is often easier said than done. These folks can be like moving targets when it comes to communicating and implementing company policies.

Below is an excellent article by Rebecca Schafer which discusses this vexing problem and offer concrete solutions.  Ms. Schafer is  President of Amaxx Risk Solutions, which is a national expert in the field of workers compensation:

“Having a great workers’ comp program is meaningless if your employees don’t know about it and use it. To get your employees to know about the program, you have to tell them about it, not just once. After initially delivering the information about your workers’ comp program, you need to reinforce and remind them of its importance. And it is not enough that the employees know about it, they have to be willing and able to use the program you have in place. All necessary information must be readily and easily accessible to all your employees and so familiar to them that they instantly know where to find all necessary information.

Make the Message Fit the Environment

Design your workers’ comp materials to fit the environment. A printed brochure may work for clerical employees who work at a desk and can put them in a file folder. But will a brochure work for a factory floor worker without file space? Probably not. A brochure handed to that worker will likely end up in the round filing cabinet, i.e. a waste receptacle after being piled somewhere with other papers.

Think about where your employees work, take breaks, gather and socialize when thinking about how and where to communicate your workers’ comp messages. The delivery of information must take into consideration the location where the communication is occurring. An auto visor packet might be good in a company vehicle. Wallet cards might be good for employees who go into the field. Signs near water coolers and restrooms are good reinforces. Lamination of the materials is important where there is the potential for dirt or moisture in an environment that can ruin plain paper.

Combine Methods to Maximize Impact

Think about how you want to deliver your message. Using a combination of methods may be the best way to continually drive home your messages. For example, you may want to hand out or mail brochures to new employees with an annual update. Then you can also put up posters throughout the work area and in break rooms, give employees wallet or lanyard cards, and put a zippered three-ring mobile folder in all vehicles and toolboxes.

Another constant reminder is a sticker label to be put on telephones. This way the name and numbers of who to call when there is an injury or a claim is called in are immediately accessible to those making the calls.

Tailor the Message to the Audience

Think about your audience when designing your message materials. Do you have non-English speaking workers? Then your materials should also be translated into their first language. Are your employees eighth grade or college graduates? Make sure that your messages are clearly communicated in the simplest language possible. Don’t use several ten-dollar words where one ten-cent one will work. Your materials for your supervisors and upper management can be more in depth than is needed for your line workers. Also, the materials in your employee handbooks and safety plans can have much more detail than is needed in your program posters and wallet cards.

Make the Messages Easy to Read

Are your materials well lit and in big and dark enough font to be easily readable? As any middle aged worker in desperate need of reading glasses will tell you, they cannot see the same font size in a lighter color or that is against a non-contrasting background. Test their readability before their final printing. A clearly worded message won’t be read by employees who can’t easily see it.

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Please feel free to contact me about your workers compensation safety challenges to discuss solutions that fit your unique work environment.  Also lets talk about a your workers compensation insurance program and determine if  there are lower cost options for you in the market.

You can reach 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  2014 Conference Booth 1123
California Staffing Association Member

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

Who Needs to be Covered Under Workers Compensation Laws?

Here is some guidance that will help you determine the answer to this very important question:

1.  Right to Control – The degree of direction and control a person or organization exercises over someone they contract with to perform a task is always a central issue in determining an employer-employee relationship. A person or organization controlling the manner in which the work is to be performed indicates that the task is being performed by an employee. If the person doing the labor controls the time and manner in which the work is to be done this may indicate that the task is being done by an independent contractor. If an individual is truly independent, the individual generally works under his/her own operating permit, contract or authority.

2.  Character of Work Is the Same as Employer – Work being done that is consistent with the primary work performed by the hiring business indicates that the labor is being done by an employee. Work done by a person that is different than the primary work of the hiring business may indicate the task is being performed by an independent contractor. (For example, someone installing shingles for a roofer is generally considered the employee of that roofer. Conversely, a plumber hired on a one time basis to fix a broken pipe for a retail store owner is generally considered an independent contractor,)

3.  Method of Payment– Employees tend to be paid wages on an hourly, daily. weekly, or monthly basis. Naturally, employment is indicated if the hiring business withholds taxes and/or provides other employee benefits (Unemployment Insurance, health insurance, pensions, FICA, etc.) Whether the labor is paid using a W2 or 1099 Form for tax purposes does not matter in determining an employer/employee relationship for workers’ compensation purposes. A business paying cash to an individual for services usually indicates that the individual is an employee. Payment made for performance of the task as a whole may indicate the task is being done by an independent contractor.

4.  Furnishing Equipment/Materials – A business providing the equipment and/or materials used by people in performing the work tends to indicate an employer-employee relationship.

5.  Right to Hire/Fire – A business retaining the authority to hire and fire the individuals performing the work indicates an employee is performing the work. An independent contractor retains a degree of control over the time when the work is to be accomplished and is not subject to be discharged by the hiring entity because of the method he chooses to use in performing the work. Naturally, an independent contractor’s services may be terminated if the services rendered do not meet contractual requirements,)

All factors may be considered and no one factor alone determines whether a person will be considered an employee under the Workers Compensation Laws.  A workers’ compensation law judge determines whether a person is considered an employee at a hearing following a work related accident or illness.

Please let me know if you have any questions regarding these rules  about workers compensation.  When I owned my staffing firm for 16 years, I always wanted to sleep better at night so I erred on treating all workers as W-2’s and securing workers compensation insurance for them.

Finally, feel  free to contact me for a FREE quote for workers compensation 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 2014 Conference Booth 1123
California Staffing Association Member

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

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

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.