No industry is safe from the risks of the current labor market. Employee shortages can influence multiple liabilities, but a proactive strategy can help protect your organization. In this article, learn measures to minimize labor shortage liability risks across all industries, as well as influential industry risks for construction, manufacturing and trucking.
2. Manufacturing — Experiencing a major labor crisis, the
U.S. Bureau of Labor Statistics (BLS) reports manufacturing
is currently facing nearly 800,000 job openings. Employers
have lowered job requirements related to criminal history,
legal marijuana usage and work experience to expand
their candidate pool. This could lead to an underqualified
workforce, increased job site accident occurrences and
subsequent liability issues. Recent industry research
indicates inexperienced manufacturing employees
contribute to over one-third (35%) of worksite accidents and
related insurance claims.
Reports also discovered that 60% of manufacturing
workers have additional stress, muscular pain and
discomfort from being overworked since the pandemic. This
is concerning as it can create additional accident risks and
related workers’ comp liability.
Trucking — Trucking employers have extended existing
employees’ driving schedules and lowered driver applicant
standards. Such factors can increase an employee’s
likeliness to be involved in serious road accidents and
influence various liability issues, including driver injuries,
fatalities, damaged or lost inventory, and delivery delays.
Measures to Minimize Labor Shortage Liability Risks
1.
Ensure effective onboarding processes. Especially if
labor shortages require you to hire inexperienced workers,
it’s critical to have proper onboarding protocols. These
procedures can equip new employees with the knowledge
and resources needed to succeed.
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2.
Provide routine training. All workers should engage in
regular, job-specific safety training. Instruction will help
promote a culture of safety, minimize workplace accidents
and decrease related liability concerns.
3.
Review and upgrade new hire training processes.
Retention rates are significantly higher when recent hires
are provided considerable training opportunities. Schedule
regular new hire training sessions with knowledgeable
employees to encourage new workers while they establish
their skill sets.
4.
Schedule regular check-ins. Maintaining open
communication will motivate employees to share safety
concerns or other work-related issues. This will allow you to
remedy problems before they cause liability incidents.
5.
Partner with your broker. Work with your broker to
make sure you have proper commercial insurance
coverage to protect your business. They can also help you
create additional risk mitigation strategies to keep your
employees and business safe.
No industry is safe from the effects of the current labor
market. Employee shortages can influence multiple liabilities,
but a proactive strategy can help protect your organization.