Buyers Guide 2010

Driving Down Your EMR

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By Daniel C. Brown

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It’s been said that construction safety management should consist of gentle pressure, relentlessly applied. And you need to freshen up your safety program now and then; nobody wants the safety effort to grow stale. If it does, workers start to expect safety incentives as a matter of course, not something to be earned. Your experience modification ratio (EMR) can begin to rise, and that’s not good. The goal is to drive down the EMR.

Ed Pore, the director of environmental safety and health at Pulice Construction, says he’s concerned about his company’s EMR. Because the Phoenix, AZ–based contractor has grown, its EMR has climbed to 0.88, up from 0.52 a few years ago. With a higher EMR, insurance costs more, and if your EMR reaches 1.0, you may not be invited to bid on certain jobs.

“We’re in a strong push to drive down our EMR,” says Pore, a certified safety professional.

The first goal at Pulice is to avoid accidents. But when accidents do happen, Pulice aggressively manages claims. That means getting injured employees back to work as soon as possible, even under restricted work duty. Pore and Pulice management figure that the company is money ahead on insurance premiums to pay injured employees full wages to do restricted duty rather than give them two-thirds pay to sit at home.    

“It’s less expensive to pay them full wages on restricted work than to have them not work and draw two-thirds of pay,” says Pore. “We keep the EMR low. It’s hard to sell management to keep the walking wounded on the payroll, but in the big picture we save money. It’s an unwritten rule that if your EMR is 1.00 and above, you’re undesirable from a safety perspective.”

Good safety practice demands involvement in the safety effort from management and workers, Pore says. “We do safety audits, which is another term for safety inspections. I do them, project managers do them, superintendents do them. Sometimes we announce them, and sometimes we don’t.”

What works well, Pore says, is for a project manager or superintendent to accompany him on a safety audit. That way the other man learns what to look for in a safety audit. “We try to spread the responsibility around,” says Pore.

Pulice runs a safety incentive program. Foremen and supervisors can earn $200 per quarter for going accident-free. Superintendents can earn $300 per quarter for a zero accident rate. Job-site administrators earn incentives for turning in safety reports on time—reports of safety meetings and toolbox talks held. The criterion for an accident is that if you go to the doctor, it counts as an accident.

If an employee has an accident, he is out of the safety incentive program for a year. And his foreman and superintendent are taken out of the program for a quarter. Project managers don’t get any incentives; their rewards are considered to be a successful project in itself.

This cash rewards program is new at Pulice. Formerly the company used a program called START, which was a behavior assessment program. Management assessed employee behavior and rewarded them based upon good scores. Employees were rated on wearing personal protective equipment, safe work habits, good attitudes, and other details. “We were giving employees logo clothing, logo hats, logo flashlights, and so forth,” says Pore.

There came a point when that didn’t work anymore. A foreman would get too busy to think carefully about his behavior assessments, and speedily whip out the reports. “We called it pencil whipping,” says Pore. “And managers would give friends higher ratings. Now it’s a pure safety incentive. Rewards are based purely on results. So far, it’s working pretty well. We just passed six months with no lost-time claims.”

Sundt Construction, a highway and heavy contractor based in Tempe, AZ, has an EMR of 0.62. “No, we’re not happy with that 0.62,” says Brian Murphy, vice president and director of quality and safety. “We’d like to get the EMR down to 0.50, but that’s difficult to do, given the type of work we do. It’s more dangerous than installing ceiling tile.”

What has worked well for Sundt, says Murphy, is to preplan safety into a job. “Since we started preplanning safety into our jobs, we have gotten a safety record that’s 10 times better than it was 10 years ago,” says Murphy.

For example, Sundt holds meetings prior to bidding a job. Company managers walk through the project and plan the safety measures needed. Then after the project is bid and won, the project team holds more meetings at which safety measures are planned. And Sundt holds weekly safety meetings on the job.

Sundt prepares a written task hazard analysis of every separate task on the job. That analysis spells out the hazards, safety issues, and measures needed to make the task safe. It’s a living document, says Murphy, and can be changed as needed or to respond to an employee’s suggestion. 

“On a daily basis, we have a ‘safety huddle,’” says Murphy. “That’s where the crews get together before a shift, or when they change what they’re doing. They take five to 10 minutes to go through the techniques they will use and the safety measures needed. If the process changes, or the weather changes, it’s OK to change the task hazard analysis.” 

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Murphy says Sundt builds safety into project schedules. For example, if a crew is laying pipe in a 4-foot-deep trench, then needs to dig a deeper hole for a 20-foot-deep siphon, the crew will look ahead and schedule that deeper hole. It will require a trench shield, which needs to be scheduled into the job—ahead of time. 

“We’re selling safety through production,” says Murphy. “If you can show a superintendent how he can meet his production rate by preplanning, then you can sell the safety piece as part of the preplanning. We didn’t do that 10 years ago. You marry production with safety. It’s working for us.” 

Author's Bio: Daniel C. Brown is the owner of TechniComm, a communications business based in Des Plaines, IL.

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