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.

OOPS… We Just Had a Workers Compensation Claim — How Much Will It Cost?

I usually get a call a week from a staffing client asking about the potential costs of a new workers compensation claim.  Although their workers  comp provider will ultimately handle the claim, they know that their future workers compensation rates may reflect this new claim. So naturally, in addition to caring about the employee’s ability to get back to work,  my staffing clients are very concerned about the costs resulting from the accident.

I have found that there are a number of factors that are part of estimating the cost of a workers compensation claim.

THE MOST IMPORTANT FACTOR, FROM MY 26 YEARS  of EXPERIENCE, IS THE QUALITY OF THE ADJUSTER.  Identifying and working with a knowledgeable and diligent workers compensation claims adjuster should be  the main objective for the staffing company’s owner, when trying to minimize the financial impact of a claim.

Below is a link to an excellent article that identifies the different cost variables in a workers compensation claim.

http://www.workerscompensation.com/compnewsnetwork/workers-comp-blogwire/19014-what-is-your-workers-compensation-claim-worth.html

If you are looking for other ideas about ways to minimize your exposure to workers compensation claims,  and to lower your work compensation costs;  please contact me at  at david@StaffingCompSolutions.com.  And always feel free to 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.

How Work Comp Staffing Solutions Can Make Your Staffing Company More Profitable

I send out a lot of emails about workers compensation programs for staffing companies and often forget to ask the simple question:

“How else can I help your staffing company?”

Having owned a 60 office staffing company for over 15 years, I know every day in staffing can be a new challenge, with new tests for you as an owner. From cash flow concerns, to continual margin pressure, I appreciate that owning a staffing company can be somewhat of a lonely business and as an owner you can feel somewhat isolated.

That being said, given my extensive staffing experience of over a quarter century, I may be able to suggest some new ideas and strategies that will improve your business model.

Please feel free to contact me to chat about your challenges. You can reach me at david@StaffingCompSolutions.com or 202-302-1212.

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 20 Years.

Selecting the Right Comp Code Can Be The Beginning or the End of Your Workers Compensation Headaches

When a staffing company partners with a Professional Employer Organization (PEO) making the right call about new class codes is headache free.  PEO’s have experts on staff that will help you define the position accurately, in order to select the optimum code. Also by using a PEO, the staffing company does not have anymore audits because now they occur between the PEO and the carrier.

Staffing companies that use their State Funds for workers compensation, know that picking the wrong code, can raise red flags during an audit– costing the staffing company tens of thousands of dollars in extra fees and penalties.  PEO’s help you avoid these costly  and aggravating mis coding mistakes that frequently occur  during  a workers compensation audit..

Here  is a wonderful article by Mari Kautzman of Temp Works about this very subject.

http://staffingtalk.com/workers-comp-insurance-headaches/

Please feel free to contact me at david@StaffingCompSolutions.com for a FREE workers compensation quote. Also visit us at www.StaffingCompSolutions.com to review other workers compensation solutions for your staffing company that Work Comp Staffing Solutions can help you with.

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 20 Years.