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The Relationship between Human Resources and Safety Performance

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Reasons why you should read these slides:

It’s totally focused on your industry, versus a general industry session.
The Ohio Bureau of Workers’ Compensation (BWC) requires employers who participate in a group/group retrospective rating plan and have had a workers’ compensation claim within the “green year” to complete two hours of mandatory safety training during the each policy year. This means that companies who are group/group retrospective rated participants with an injury claim filed between Jan. 1, 2012 and Dec. 31, 2012 (calendar year 2012) must attend safety training, regardless of the size or severity of the claim. Per BWC guidelines, each company policy owner is required to fulfill separately the two-hour training requirement and may designate any company representative to attend.
Failing to meet this requirement could jeopardize your group/group retrospective rating program status.
The ORA is one of Ohio’s leading providers of foodservice-specific health and safety educational initiatives. The association links members of the foodservice industry with industry leaders that take an active involvement in educating them about procedures and policies that can reduce and prevent accidents in their establishments.

The association understands that members don’t have the time and availability to sit through hours and hours of educational meetings that focus on addressing all of the health and safety concerns that can befall a restaurant. That’s why we target our educational seminars to specific areas of operation, like back-of-the-house and front-of-the-house training programs.

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The Relationship between Human Resources and Safety Performance

  1. 1. May 6, 2014 9:00 a.m. - 11:00 a.m.
  2. 2. • Open and close your Panel • View, Select, and Test your audio • Submit text questions • Q&A addressed at the end of today’s session • Everyone will receive an email with a link to view a recorded version of today’s session • Your feedback is important! You will receive a prompt to complete a survey at the end of the session
  3. 3.  The Psychology of Safety and Building a Safety Culture: Tom Cunningham, National Institute for Occupational Safety & Health  Controlling the Cost of Injuries - Third-Party Administrator Perspective: Jim Wirth, CareWorks Consultants, Inc. (CCI) & RiskControl360°  Controlling the Cost of Injuries - Managed Care Organization Perspective: Ron Lucki, CareWorks  Safety & Labor Law – Top OSHA Citations for Restaurants: Keith Pryatel, Kastner, Westman & Wilkins, LLP Expert Speakers
  4. 4. When a 1,000 things pile up, it’s easy to overlook the importance of health & safety issues - that’s dangerous! The Health & Safety section of the ORA’s website helps you stay on top of concerns, offering solutions to today’s restaurant, food, and alcohol safety issues. www.ohiorestaurant.org/healthandsafety Health and Safety  Restaurant Safety & Training  Information Resources  Policies & Guides  Videos & Multimedia  Restaurant Safety Consultants  Food Safety  Alcohol Safety
  5. 5. Thomas Cunningham, Ph.D. National Institute for Occupational Safety and Health Disclaimer: The findings and conclusions in this presentation have not been formally disseminated by the National Institute for Occupational Safety and Health and should not be construed to represent any agency determination or policy.
  6. 6.  The safety culture of an organization is the product of individual and group values, attitudes, perceptions, competencies, and patterns of behavior that determine the commitment to, and the style and proficiency of, an organization’s health and safety management (HSC, 1993).  Or, the way we do things around here.
  7. 7.  John’s manager sees that John is chopping vegetables at an amazing speed…  Should the manager: A: Nod in approval; the food will be prepped on time B: Say nothing C: Tell John “Be Careful”; we don’t want him to cut himself and stop working D: Ask John why he is working so fast; try to understand why John feels like he needs to rush
  8. 8.  Attitude vs. behavior change  Behavior is easier to see, and easier to change  Change the behavior and attitude may follow
  9. 9. Attribution of the causes of injuries  Chance vs. “person” causes vs. latent causes  Look at the whole picture  Injury logs can help identify trends and problem areas.  Exploring and documenting near-misses Thorough walk-through  Identify trip/slip/fall hazards  Employee involvement for continuous improvement What types of controls can be implemented?  Ongoing monitoring and review to ensure controls are effective  How can we be preventive rather than reactive?
  10. 10. Most Effective / Protective Elimination Substitution Engineering Controls Administrative Controls Personal Protective Equipment
  11. 11. Coworker reminder to use protective glove Employee safely cuts food Employee receives appreciative comment from manager
  12. 12. Restaurant owner attends ORA training event on safety culture Restaurant owner provides safety training and equipment to employees Restaurant owner experiences lower probability of worker injury
  13. 13.  Safety does not end with training  Must check for employee understanding  Have employees demonstrate safe behaviors  Practice with feedback as part of training  Integrate behavior-based safety coaching into the culture  Management commitment and employee involvement  Peer observation and feedback  Ongoing monitoring and review
  14. 14. Behavior Safe At-Risk Load appropriate? Back straight? Use legs? Hold load close to body? Shoulders and hips aligned? TOTAL Total Safe Behaviors / Total Safe + At-Risk Behaviors X 100 = % Safe
  15. 15.  Consult managers and employees to get their impressions of the problem areas and ideas / areas for improvement e.g. Have them help to develop checklists  When people contribute to a safety effort, their ownership and commitment to safety increases. Employees communicate about safety  Perception of management / owner’s total buy-in for safety practices and procedures increases employees’ participation  Unsafe behavior is a symptom, not the disease Unhealthy safety culture is a system problem
  16. 16. Email: Tcunningham@cdc.gov Phone: 513.533.8325
  17. 17. The Third Party Administrator Perspective Jim Wirth, CareWorks Consultants / RiskControl 360
  18. 18. Introduction - What is the best way to control workers’ compensation costs?  Maintain a healthy, cooperative relationship with your associates where communication is open and encouraged  Safety/Prevention: Make safety a priority for your organization Create and promote a safety process that reduces the occurrence of incidents/accidents…and claims Involve all associates in your safety efforts
  19. 19. Claims  Medical Only Claims: Usually a minor injury Claims with seven or fewer days of disability usually results in a small reserve for a limited period of time  Lost Time Claims: Claims with eight or more calendar days of disability Reserves can occur in lost-time claims  Occupational Disease Claims: Claims where an employee contracts a disease in the course of employment. These claims often develop over time
  20. 20. Cost Control Tools  Safety  Accident Investigation  Communication  Salary / Wage Continuation  Deductible  Vocational Rehabilitation  Transitional Work  Lump Sum Settlements  Handicap Reimbursement  Subrogation  BWC/Employer Sponsored IME  Surveillance  Work with Third Party Administrator (TPA) / Managed Care Organization (MCO)
  21. 21. Accident Investigation  Communicate with your CareWorks Consultants claims examiner as soon as the injury occurs  Report to the MCO  Thoroughly investigate the circumstances of the incident / accident  Document evidence in writing  Utilize accident report and photographs  Obtain witness statements  Utilize classes at BWC Training Centers  Important for PREVENTION…and hearings
  22. 22. Salary Continuation  Should be considered for any claim if eight or more calendar days of work will be missed, even if claim is not certified by employer  CareWorks Consultants can provide the employer with a premium impact study to help make a decision on whether salary continuation should occur
  23. 23. Transitional Work  Reduces cost of hiring and training replacements  Helps prevent injured worker’s adjustment to disability lifestyle  No break or loss in income  Gradually returns employee to full duty work  Lower costs contribute to reduced premiums  Works in conjunction with salary continuation  Consists of short term and temporary tasks
  24. 24. Vocational Rehabilitation  Surplus charge for most services  Return-to-work focused  Closely monitored, individualized programs  Case management professional assigned to each case.  Participation is voluntary…but make it an interesting and positive experience.
  25. 25. Lump Sum Settlements  CareWorks Consultants helps identify claims appropriate for Lump Sum Settlements (LSS) and determine settlement amount.  Employer directs CareWorks Consultants to offer settlement.  Employer, injured worker and BWC must agree to LSS.  BWC pays settlement.  Settlement will eliminate the reserve portion of the claim and prevent future payments.  Claim will remain in employer’s experience for four years.
  26. 26. Handicap Reimbursement  Epilepsy  Diabetes  Cardiac Disease  Arthritis  Loss of sight  Poliomyelitis  Cerebral palsy  Multiple sclerosis  Parkinson’s disease  Cerebral vascular accident  Tuberculosis  Silicosis  Psychoneurotic disability  Hemophilia  Amputation foot, leg, arm or hand  Chronic osteomyelitis  Ankylosis of joints  Hyperinsulinism  Muscular dystrophy  Arteriosclerosis  Thrombophlebitis  Varicose veins  Cardiovascular & pulmonary disease (firefighters)  Coal miner’s pneumoconiosis  Completion of Industrial Commission or similar rebab program  Service related disability
  27. 27. Subrogation - A type of third party recovery  Motor vehicle accident  Medical malpractice  Exposure to toxins  Machinery malfunctions  Animal bites BWC generally pursues
  28. 28. Independent Medical Exams (IME)  BWC Independent Medical Examination - used to determine whether the injured worker is capable of returning to his/her former position of employment, or if the allowed conditions have become permanent.  Employer-sponsored IME / IMR (Independent Medical Review) - used to provide medical evidence in support of an employer’s objection to the claim allowance or compensation. Fee for this exam/file review is paid by the employer.
  29. 29. Surveillance  Employer hires a private investigator if red flags exist that may point to fraudulent activity.  Employer contracts directly with the investigator.  If fraud is identified, it can be reported by calling BWC at 1-800-OHIOBWC or logging on to www.ohiobwc.gov  BWC generally does not allow a TPA to report fraud - it must be reported by the employer.
  30. 30. Summary  Contact CareWorks Consultants and your MCO immediately when an accident occurs  Thoroughly investigate the accident  Document evidence in writing  Understand how a claim impacts your rates  Consider salary continuation on all lost-time claims  Offer transitional work when worker is on restrictions  Lump sum settlements / Handicap reimbursements  Subrogation
  31. 31. Jim Wirth, CPEA jwirth@riskcontrol360.com 614-827-0370
  32. 32. Ron Lucki CareWorks
  33. 33. Early Intervention  Before and After an Injury Medical management - Return to Work Vocational Rehabilitation Open Enrollment
  34. 34. 1. Panic 2. Confused 3. Fear 4. Angry 5. Prepared
  35. 35. First Report of Injury (FROI) Steps to Follow
  36. 36. Personalized Workplace Injury Posters
  37. 37.  Early Reporting is crucial  Early investigation is important  Refer IW to preferred provider  Collect facts and documentation If You Have a Workplace Injury:  Early and effective medical management  Early return to work management  Lower claims costs Early Reporting Leads to:
  38. 38. Claim scenario: WITHOUT early reporting  DOI 12-1-2011  Claim not filed/reported until 1-1-2012  Injured Worker (IW) misses time from 12-1 to 1-11 (6 weeks)  TT payable for 6 weeks at max TT rate for 2011 (6 x $783 = $4,698)  Increase in medical cost due to lack of involvement in claim  Increased medical, TT and reserve can have impact on employer’s EM and premium obligation
  39. 39.  All claims are reviewed / triaged by a clinical case manager to determine acuity, severity, medical stability.  Are they URAC accredited? This holds the MCO to the highest standards of quality and guidelines.  Complete Drug / Medication reviews frequently to ensure medications/drugs for all claims are appropriate for allowed diagnosis.  Is the MCO proactively moving the claim towards medical stability and return to work? Are all options being explored?
  40. 40. If the claim does not seem to be moving forward, is the MCO exploring other options? Examples include :  Transitional Work  Remain at Work
  41. 41. If the claim does not seem to be moving forward, is the MCO exploring other options? Examples include:  Modified Duty Off Site (MDOS)  Limited Medical Management (LMM)
  42. 42.  Use of surplus fund  Reduced lost time  Increased productivity  Rehabilitation / return to work focused  Individualized plan / liaison to parties  Face to face intervention Benefits of Vocational Rehabilitation
  43. 43.  Physical or Occupational Therapy  Work Conditioning  Occupational Rehab (Work Hardening)  CARF Accreditation required  Functional Capacity Evaluation  Ergonomic Study  Job Analysis Voc. Rehab. PRIOR to Return to Work
  44. 44. I don’t always have a workers’ compensation claim But when I do, I call CareWorks
  45. 45.  Every Two Years  2014 Open Enrollment  April 28 to May 23  If you are with CareWorks….Do Nothing! 2014 MCO Open Enrollment
  46. 46. Thank you
  47. 47. Keith L. Pryatel, Esq. Kastner Westman & Wilkins, LLC.
  48. 48.  National study on HR Practices and Employee Turnover in the Restaurant Industry Jan. 15, 2014 Rockefeller & Ford Foundational Funding Studies show 1 of 2 fast food workers turnover each year; 40% turnover rate for “moderately priced” restaurants; lower rates for “fine dining”, but higher per- employee turnover costs
  49. 49.  Turnover costs -- $18,200/annual for 30 employees or less; $182,000 for 10 restaurant chain; $1.8 million for 100 restaurant chain  Most important HR practices that significantly reduce turnover and lengthen job tenure  high relative wages  job security  longer work hours  more discretion at work  policies for promotion from within
  50. 50.  Less than 20% of restaurant employers offer any level of paid sick time or paid time off; only 33% offer vacations or subsidized health insurance even “fine dining” is low. 30% offer paid leave or PTO; 5% offer paid vacations or subsidized health insurance.  Employee discretion is low in all restaurant establishment. Only 5% allow front-of-house employee discretion in their communications with customers without consulting managers; or in problem solving.
  51. 51.  Annual pay for fast food employers:$13,257 ($255/52 weeks); $18,720 (back-of-house / BOH) and $24,123 (front-of-house / FOH) for “moderately priced restaurants”; $20,902 (BOH) and $34,990 (FOH) for fine dining.  Restaurant industry traditionally offers few employee benefits e.g. paid sick leave; paid time off; paid vacation; subsidized health insurance because: part-time; seasonal; student; immigrant workers
  52. 52. High turnover is costly; Raises curb of selecting, recruiting and training replacements New employees are less proficient until they catch up on the learning curve (less knowledgeable about menu - no customer relations) Disruption of operations - manager attention to other areas is shifted. How investment in HR reduces turnover
  53. 53. Hourly wages and job security are two most important factors. Hours available to work and discretion exercise are other important facts.
  54. 54.  PPE Survey  Identifying workplace violence risks – cases / door markers / drop sales / windows  Disciplining for safety violations  HazComm Program  Lock Out / Tag out  Voluntary OSHA Log (300 and 300A) www.osha.gov
  55. 55. Thank you! Keith L. Pryatel, Esq. kpryatel@kwwlaborlaw.com Kastner Westman & Wilkins, LLC. 3480 W. Market Street, Suite 300 Akron, OH 44333
  56. 56. Social Media Webinar Series: Starting June 17th - every Tuesday at 2:00 pm. Spend 30 minutes to increase your business and customer awareness  FACEBOOK - Drive results not just likes  Twitter - Success in 140 characters  Foursquare, Urban Spoon and Yelp - Time for a little R & R (Revenue and Reviews)  Instagram - Pics and Profits  Pinterest - Pin to Win  Google + - Just Another Pretty Facebook?  Mobile apps - So Many Apps. So Little Time. Go to www.ohiorestaurant.org/res next week to register!

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