napeo loss prevention presentation
DESCRIPTION
Presentation given to NAPEO on loss prevention.TRANSCRIPT
Best Practices— PEO Risk Control
Florida Workers Compensation Institute
Orlando, FLAugust 20, 2002
The Challenge
Fatality each 100 minutes
Disabling injury each 8.5 seconds
$127 Billion annual cost to the economy
A workers comp market that avoids PEO exposures
Why PEOs?
On-the-job accidents and injuries have a profound effect on small employers
OSHA State Consulting Services ineffective in providing results
National Safety Council programs are good, but voluntary
PEOs can leverage the workers compensation relationship
Why PEOs?
A well-run PEO committed to risk control can provide a measurable return on investment for a small business owner
A well-run PEO can provide a professional risk control resource to a pool of small employers that might otherwise have no assistance
NAPEO “Best Practices” for Loss Prevention
The PEO should include specific safety and risk management requirements in the client service agreement
Do you use a qualified safety professional to conduct “presurveys” of higher risk classes?
NAPEO “Best Practices” for Loss Prevention
The PEO should assist each client with a safety policies/rules manual adapted appropriately to address the key loss drivers and OSHA compliance requirements unique to each client exposure
Do you have the data to analyze loss drivers?
NAPEO “Best Practices” for Loss Prevention
The PEO should conduct regular site safety inspections…
Do you have a specific service plan for each client?
NAPEO “Best Practices” for Loss Prevention
The PEO should monitor claims experience (including the nature and frequency of claims) by client at least quarterly, including a review by top management
Do you use a “watch list”? What are the criteria?
Top Safety Practices—NSC Survey
Senior Management publishing a policy and expressing its attitude on safety
Making safety training a part of every new employee’s orientation
Supervisors setting an example by safe behaior Supervisors maintaining high standards of
employee safety performance Senior management setting an example by
behavior in accordance with the rules
Bottom Safety Practices
Offering incentives to employees through individual safety contests
Using posters to promote safety Keeping records of off-the-job injuries Coordinator enforcing safety regulations Offering incentives for good safety
records by departments
How Strong is Your Risk Control Effort?
What do your clients do to prevent accidents on a daily or routine basis?
How do you know?
How do you measure and motivate clients?
Existing Culture—the “Real World”(common in many companies today)
No ownership or line management involvement in accident prevention
Safety efforts driven by a staff designee, if at all
To the extent safety performance is measured, it is measured solely on outcomes
Heavy reliance on gimmicks and incentives to “prevent” accidents
Six Criteria to Safety Success
Top Management Commitment Middle Management Involvement Forced Supervisory Performance Hourly Employee Participation Flexibility Perceived As Positive
Four Components To Management Accountability
Defined Accident Prevention Roles for Each Level of the Organization
Training to Enable Performance Metrics That Measure Quantity and
Quality of Performance Reward/Feedback System Based on
Performance
Creating a Positive Loss Prevention Program
Work with owners/principals to create management accountability for safety performance
Provide training to enable client performance
Build the loss prevention action plan into the “front end” of the relationship
Creating a Positive Loss Prevention Program
Develop a loss prevention service plan that meets the client’s specific needs
Attack specific frequency and severity drivers across your book of business
Utilize a watch list process (and have the self discipline to follow through)
Do not assume the client’s loss prevention obligations