How to Develop a Positive Safety Culture

How to Develop a Positive Safety Culture

Nick Hardesty

District Manager

KPASafety Culture

Behavior

Communication

Training

Moderator

Becky RossMarketing Manager

KPA

(303) 228-8753

bross@kpaonline.com

Presenter

Nick Hardesty

District Manager

KPA

(262) 649-2903

nhardesty@kpaonline.com

Questions

• If you have questions during the presentation, please submit them using the “Questions” feature

• Questions will be answered at the end of the webinar

5

Agenda

Can you define “Safety Culture”?Changes in Workers CompensationSafety Program in 7 Steps Safety Incentive Programs

Safety Culture

Chernobyl Disaster-1986

Safety Culture

Wikipedia

Safety culture is a term used to describe the way in which safety is managed in the workplace, and often reflects "the attitudes, beliefs, perceptions and values that employees share in relation to safety" (Cox and Cox, 1991).

Safety Culture

Safety Culture is…”the product of the individual and group values, attitudes, competencies and patterns of behavior that determine the commitment to, and the style and proficiency of, an organization's health and safety programs.”

Safety Culture: A Review of the Literature (UK)

Safety Culture

• EHS Today-America’s Safest Companies“Our culture is to expect 100% engagement from all

associates in our safety programs, which includes not

only participation but also leadership.”

“Our culture of safety innovation and continual

improvement has fostered countless, positive safety

changes with profound impact on our safety performance.”

“How many companies can say that their CEO

has reviewed every single recordable injury AND serious near miss?

We can!”

“Our 76% improvement in recordable injuries and external recognitions are a result of our strong safety culture, and they

demonstrate how ingrained safety is in why and how we do

business.”

“Safety, or EHS, is who we are…It’s a core value that is integrated into all

business processes and functions.”

Safety Culture

Manage Safety Top Priority Employees

Communication Attitudes Beliefs Values

Programs Process

Safety Culture

• NCCI-National Council on Compensation Insurance

Safety Culture

MOD Factor

“Split Point” Changes

$5,000

$10,000

$13,500$15,000

2012

2015

2014

2013

• Rates are pre-determined

• Common set of class codes

• Ensure accuracy with job descriptions• 6 Point Dealer Group

• 100 Employees at each location

• Annual Payroll of $5 million per dealership

600 Total Employees with $30 million in payroll

• 8330 (Tech) $9,000,000 = $90,000 x $5.00 = $450,000 $100

• 8748 (Sales) $9,000,000 = $90,000 x $2.00 = $180,000 $100

• 8810 (Admin) $12,000,000 = $120,000 x $1.00 = $120,000 $100

Total manual premium: $750,000

83808748

8810 94107380

Safety Culture

Classcode Employee Type % of

Payroll $ Payroll Premium$100 payroll

8380 Technicians/ Detailers/ Drivers 30% $9 mil $5

8748 Sales 30% $9 mil $2

8810 Administrative 40% $12 mil $1

Payroll For Aacme Motors

Safety Culture

2004 2005 2006 2008

2005 2006 2007 2009

2006 2007 2008 2010

2007 2008 2009 2011

2008 2009 2010 2012

“E-mod”

“X-mod”

“Mod Factor”

“Experience Rating”

“Merit Rating”

• Calculated by the National Council on Compensation Insurance (NCCI) or a state agency

• 3 consecutive years are used to calculate a rating• Excludes current and prior year

• Frequency of claims is weighted higher than severity• Used to compare businesses in the same industry

• Industry Average is set to “1”

$750,000 Manual Premium

Aacme Motors ABC Motors

Experience Mod .80 (-20%) 1.2 (+20%)

$600,0000 $900,000

A difference of $300,000!

Ratings are based on business characteristics the insurance company thinks can make a difference in reducing future losses.

• Regular safety committee meetings

• Positive incentive programs

• Written safety programs

• Hazard inspections

• Ongoing safety training

• Timely reporting

• Claims Management

Safety Culture

Aacme Motors ABC MotorsTier Rating 1.17 (preferred plus) 1.67 (residual)Experience Mod -20% (.80 mod) +20% (1.2 mod)Deductible -3.9% ($500 ded.) 0%Provider Discount -2.5% 0%Association Disc. -4% 0% Cost Containment Cert. -5% 0%Schedule Rating -10% +10%Premium Disc. -8.6% -8.6%

$390,795 $1,189,804

$750,000 Manual Premium

A Difference of: $799,008!!!

Safety Culture

1. Senior Management Leadership

2. Safety Coordinator

3. Employee Involvement – Recognition– Communication

4. Timely Notification of Claims

5. Return to Work Practices (Medical Treatment)

6. Written Programs & Processes– New Hire Orientation– Safe Work Practices– Safety and Health Policy

7. Recordkeeping & Analysis

Safety Culture

Senior Management Leadership

Safety Culture

Safety Coordinator

Safety Rules

Safety Culture

Employee Involvement

Safety Culture

Timely Notification of Claims

Safety Culture

Return to Work Practices

Injury

Report Injury

• Employee reaches maximum improvement and returns to work in original position

• Employee has not reached maximum improvement and returns to work in transitional work assignment

• Employee reaches maximum medical improvement but has received disability rating and is assigned to modified job or different position

Send for Medical

Treatment

Safety Culture

Written Programs & Processes

Safety Culture

Recordkeeping & Analysis

Safety Culture

Incentive Programs

Open lines of communicationGive ability to make suggestionsAllow for group discussionsPraise

– Positive GossipThank the employee by nameState what the employee did to earn praiseExplain how you felt about the behaviorState how the behavior added value to the companyThank the person again by name

1.Targeted behaviors• Positive and tangible

2.Program Rules• Must be clear to all employees

3.The Reward• Appropriate for the effort

• Meaningful and memorable

Safety Culture

Before an incentive program is considered

Basic needs must be met

The targeted behaviors of an incentive program should be positive and tangible

• Focus on “what to do”

• Give measurable actions

Safety Culture

Safety Bingo Best Safety Suggestion Good Housekeeping Accident Free Days Safety Bucks

Safety Culture

Safety CultureManagement

Processes

Programs

Priority

Attitudes

TrainingEmployee Involvement

Beliefs

Communication

Recognition

Got a Question? Ask our Expert!

Contact Information

www.kpaonline.com

Becky Ross

bross@kpaonline.com

866-356-1735