Culture Issues: Having a Good Culture is More than being OSHA & HR Compliant (Benchmarking Your Culture)

If you cannot measure it, you cannot improve it.” – Sir William Thomson (Lord Kelvin).

Sure, you can think you’re improving something, but unless you know what the problem was in the first place you can’t truly fix it, and if you don’t truly fix it your improvement is nothing more than band-aid surgery. For example, a baseball player is in a deep slump and can’t hit a lick. Suddenly he’s goes four for five in a game and thinks he solved his problem. But what caused the problem? Without analyzing and benchmarking what he’s been doing all along, i.e. the angle of his bat, how high he holds his hands, the all-important “launch angle,” he will not have a true measure of if he is on the right track or just “having a good day.”

This is not uncommon in the business world. Let’s take for example your experience modifier, which is one of the biggest drivers of an employer’s workers’ compensation premium. The lower your experience modifier is the lower your premium will be.

Your experience modifier is based on your data, total claim dollars and audited payroll amounts over a three-year period.  Unfortunately, most insurance agents will come to you and say: “You have a 0.94 experience modifier. That is great! You are getting a credit of 6% for a great loss history.” In other words, your company is making money. Therefore, you must be stressing to your employees to be job safety conscious. But that’s not automatically the case.

Many times a business owner believes because they are making money they have a good culture, so all is good.  However, when they conduct an analysis, and do a deep dive into the all-important data points, they can see that there are issues within the company that is holding them back from real growth, productivity, accountability and profitability. From making real money.

To Continue Reading: Construction Today Magazine

Culture Issues: Accountability When it Comes to Job Performance

Close your eyes and imagine you’re the manager of a professional baseball team, it’s Game 7, bottom of the ninth, two outs, your team is up 3-2 with the tying run on third base, and the winning run on first base. Batter hits a fly ball to the gap in right center field, and the base runners go on contact. The center fielder starts to sprint… if he catches it – game over; if he plays it on one hop – the score is tied with the winning run in scoring position. The center fielder dives at full speed, lands on the ground as the ball just skips over his glove… the 3rd base runner ties the score as the ball continues to roll all the way to the warning track allowing the 1st base runner to score – the game is over and you lost.

Now, as the manager of the team, what is your reaction?  Do you “back” your fielder and compliment him on making a rational decision? Or, do you hold him “accountable”, by laying blame and berating the player for making a bad choice?

Continue to read at: Commercial Construction & Renovation

For Cutting-Edge Strategies on Managing Risks and Slashing Insurance Costs visit www.StopBeingFrustrated.com

 

HR Tip: Managers are key to culture issues – how to avoid a toxic workplace

In today’s competitive marketplace, it’s distressing to hear that one in two workers have seriously thought about leaving their current job. A recent report by the Society for Human Resource Management (SHRM), The High Cost of a Toxic Workplace Culture: How Culture Impacts the Workforce-and the Bottom Line, notes that many workers consider culture and managers to be closely connected, holding managers responsible for creating a toxic workplace. In fact, 76% of employees say their manager sets the culture of their workplace and 58 percent of employees who quit a job due to workplace culture say that their managers are the main reason they ultimately left.

More findings:

  • 1 in 3 say manager does not know how to lead them
  • 3 in 10 say manager does not encourage a culture of open and transparent communication
  • 1 in 4 dread going to work, don’t feel comfortable expressing their opinions, and don’t feel respected or valued
  • A breakdown in communication is perhaps the most common sign of a toxic atmosphere at work

The report notes that even if the culture is not toxic, but “average,” it’s not enough. Employees still think about leaving and aren’t likely to recommend the organization to a friend. Managers can build strong and positive workplaces by listening to employees, holding workers and leaders accountable for their actions, setting expectations, and clarifying information.

Workplace culture is a critical business asset and employees see the company through their immediate boss. Is the culture you have the culture you want? How well does the individual manager’s behavior reflect the organization’s core values? What steps are needed to keep values and actions aligned?

For Cutting-Edge Strategies on Managing Risks and Slashing Insurance Costs visit www.StopBeingFrustrated.com

Occupational health and safety risks now top cost disruptor

Employers looking to boost the bottom line would be smart to closely examine the costs of their health and safety incidents. While high-profile disruptions such as cyber-attacks, IT outages, or extreme weather get more attention, health and safety incidents are the leading financial loss drivers for businesses around the globe, according to the BCI 2019 Horizon Scan. The eighth report in the series analyzes the risks and threats recognized by 569 organizations worldwide, comparing them against the impact of actual disruptions in the past year.

Employers perceive occupational and health issues to be low risk (ranking #12) in the coming 12 months; yet, it was the most frequent and costliest cause of disruption in the past 12 months. It cost companies $1.1186 billion, almost four times the $307 million for IT disruptions and eight times the $144 million for cyber-attacks. Further, the report notes that there is a likely relationship between the health and safety incidents and the high costs of reputational damage.

Howard Kerr, CEO at the BSI, commented: “It’s easy for business leaders to be kept awake at night by high-profile risks such as cyber-attacks, technology disruptions and IT outages, but they must not ignore the smaller, more frequent risks that steadily erode the bottom line. Organizations that don’t take all threats they face seriously, or otherwise develop plans to manage them, are exposing themselves to not only reputational loss, but also what can become quite severe financial costs. Achieving true organizational resilience means identifying not only the big risks, but also the under-rated issues that may just seem like ‘business as usual’ and can easily be missed.”

This disconnect can stem from a failure to understand the true costs of injuries, general acceptance of injury rates as a cost of business, an unfounded belief that there is a trade-off between profits and measures to keep the workplace safe, other priorities, and so on. While many executives give lip service to “safety pays” and the value of caring for their employees, they also feel the pressures to increase profits by cutting costs. Yet, safety and profitability can coexist.

Culture comes from the top down and management commitment is the key performance indicator. Executives may believe that the mantra “we want you to go home safe each day” reflects the company’s culture but it is often viewed skeptically as drivel by employees, who feel that production trumps safety. It takes a lot more than words to demonstrate a real commitment to safety.

Management commitment to safety includes financial investment, amount of time and team members involved, technologically advanced tools such as wearables, training hours, capital projects for high-risk issues and so on. Committed leaders are familiar with the major risks and risk mitigation efforts in their facilities.

Successful executives often require a report on every serious injury and review it with the leadership team. This sends the message to mid-management that safety is an integral part of operations. They also develop a set of leading indicators that encourage a continual focus on risk reduction.

The BCI report illustrates that the cost of injuries slowly erodes the bottom line, but falls under the radar. Workers’ Comp is just the tip of the iceberg when it comes to the cost of an injury. There are many indirect costs such as lost productivity, hiring and training replacement employees, higher overtime, incident investigation, repairing damaged equipment or property, lower morale, and implementation of corrective measures. There also can be legal and administrative expenses and higher Workers’ Comp premiums for at least three years.

The National Safety Council provides helpful information on the ROI of safety at an aggregate level. But employers can take a deep dive and analyze the costs associated with two or three injuries in their organization. It’s worth the effort to quantify all the related figures. The results not only paint a clear picture of the economic value of improving safety to top management, but also help employees understand the costs come out of profits and affects their wages, bonuses, and benefits.

Unless there is a catastrophic event, health and safety incidents do not have the immediate, malicious impact that an IT disruption or cyber-attack can create. But they are highly costly and disruptive and will slowly erode the bottom line. Failure to recognize that this is not “business as usual” will have serious consequences for the longevity and resiliency of the company.

For Cutting-Edge Strategies on Managing Risks and Slashing Insurance Costs visit www.StopBeingFrustrated.com