Commitment to Safety: Building a Safety Culture in the Energy Sector


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The risks in the energy industry are serious and tangible. But hiring safety conscious employees can help reduce that risk.

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Commitment to Safety: Building a Safety Culture in the Energy Sector

  1. 1. Footnotes 1. D. Peterson, 2001. Authentic Involvement. National Safety Council 2. NIOSH 3. BLS, Census of Fatal Occupational Injuries 4. BLS 5. “Key Leadership Competencies of Safety Leaders” Doug Gray, Professional Safety, American Society of Safety Engineers 6. “Personality: The Missing Component in Safety T&D”, November 2010 7. Rick%20Church%20v2%20-%20AON%20EMR%20ASSE%206-15-11.pdf 8. Rick%20Church%20v2%20-%20AON%20EMR%20ASSE%206-15-11.pdf and 610-947-6300 COMMITMENT TO SAFETY: Building a safety culture in the energy sector “The culture of the organization sets the tone for everything in safety.1 ” THE RISKS IN THE ENERGY SECTOR ARE SERIOUS AND TANGIBLE. The oil and gas fatality rate is 7.6 times higher than the all-industry rate of 3.2 deaths per 100,000 workers.4 Younger employees (24 and younger) are twice as likely to sustain workplace injuries in comparison to older workers. 2 Studies demonstrate that employees with less than one year of service account for twice as many fatalities.3 A survey of energy companies found that the top three behavioral competencies of the safest leaders are:5 “It remains critical to have people who can make good decisions when the perfectly engineered process goes awry.”6 In the United States companies spend more than $170 billion a year on costs related to workplace injuries and illnesses. + All-industry fatality rate: 3.2/100,000 Oil and gas fatality rate: 24.32/100,000 + += 24 or younger Lessthan one-yearservice 1-5years service 54.9% of all fatalities CREATING A CULTURE OF SAFETY FROM THE TOP DOWN IS ESSENTIAL. Really, when you think about it, a safety culture starts at pre-hire. HIRING SAFE EMPLOYEES CAN IMPACT KEY WORKPLACE METRICS. An Improved Experience Modification Rating Reduced time lost due to on the job accidents Reduced risk of negligent hiring X Hire safety-minded people with SkillSurvey. BUT HOW CAN YOU IDENTIFY CANDIDATES WHO ARE SAFETY-CONSCIOUS AND CREATE A CULTURE OF SAFETY? Select a job-specific survey that asks specific questions about past work performance, including questions about safety-related performance. Ask a job candidates’s former managers, co-workers or direct reports to complete the survey online. Get aggregated feedback on the candidate in less than two days. Recruiter/ Hiring Manager SkillSurvey Engine Candidate References 1 2 3 4 5 Enter candidate and select survey Enter business references Provide confidential performance feedback Aggregate reference feedback into a Pre-Hire 360 Leverage critical 360 insight 26.7% of all fatalities A great communicator 22% 18% 17% Able to create trust Results oriented EXPERIENCE MODIFICATION RATE: WHAT IS IT AND HOW DOES IT IMPACT YOUR COMPANY? +1 EMR is a number used by insurance companies to gauge both past cost of injuries and future chances of risk. The higher the EMR of your company, the higher your worker compensation insurance premiums will be. This has a significant impact on your business and if your number is high it can: Add a Worker’s Compensation surcharge penalty Lower your company’s profit margin when bidding for projects Affect your company’s competitiveness when bidding for a project Consider two contractors with different EMRs bidding a job with $10,000,000 direct labor cost and a manual insurance rate of $15.00 ($15 per $100 of payroll for insurance costs.) Contractor A EMR = 0.60 Insurance costs = $900,000 Insurance costs = $2,100,000 vs Contractor B EMR = 1.40