The workers' compensation system continues to provide asignificant challenge to its various stakeholders, includingemployers and insurance carriers. Despite the positive news ofdeclines in claim frequency, issues such as rising medical costs,terrorism exposures, and an aging workforce continue to challengethis line of insurance.

To help address these issues, employers need to recognize andunderstand that dual management of loss costs by themselves andtheir insurance carriers can significantly impact their costs.Employers and an insurance carrier's risk control staff need tocontinue to view themselves as being on the same team and execute asynergistic approach to loss prevention.

A reduction in both accident frequency and severity should bethe focus of a well-designed safety program, with the ultimate goalbeing zero accidents. One of the components of the plan should be amitigation strategy to prevent serious or catastrophic injuries(e.g., fall protection).

A critical foundation for structuring a high-performance safetyprogram is ensuring that it is designed in concert with theorganization's climate. For this reason, most standardized safetyprograms typically don't produce the desired results in the longrun. In order for a safety program to be effective, it must becustomized and integrated into the company's culture. Moreover,management and employees need to view the safety program as anasset to the organization's success and understand how safetyimpacts the quality of their product/service and their level ofproductivity.

As head of risk control for The PMA Insurance Group, one of mymost rewarding tasks is to present awards to PMA customers who haveachieved significant safety milestones. I have observed that themajority of these organizations possess two elements. First, theyexecute a customized safety program that is aligned with theircorporate climate and operations and has senior management support.Formulaic solutions that don't incorporate an employer's specificloss exposures and business needs generally will not produce aneffective loss prevention program. An integrated approach worksbest — where risk control expertise is aligned with operationalknowledge. The goal is to improve operational performance by lossreduction. Second, these organizations have at least one employeewho acts as “champion” for safety and encourages other employees toparticipate in loss prevention initiatives.

Key Strategies for a Workplace Safety Program

While each organization's safety program should be designed toreflect their specific corporate climate and range of potentialexposures, the following are some of the common components ofeffective workplace safety programs.

Management Leadership and Employee Involvement. All levels ofmanagement need to demonstrate their commitment to creating a safeworkplace. In particular, senior management needs to be on boardand act as role models. The direct and personal involvement of anorganization's leaders in risk management issues is critical. Inaddition, all employees need to understand that safety is a sharedresponsibility between management and staff. To help promote theculture that all employees are responsible for safety,consideration should be given to the following action steps:

Develop a strong communication program on workplace safety andhealth issues that involves both employees and management.

Develop and post a written safety and health policy that hasbroad visibility.

Involve employees in policy making on safety and healthissues.

Require management to actively participate in safetyinitiatives.

Establish accountability for actions and results.

Workplace Analysis. To effectively address workplace hazards, itis critical that an in-depth risk management analysis be performedto identify and assess exposures. The analysis should be designedto identify and eliminate existing or potential hazards and beconducted on a regular and timely basis. Once the loss exposuresare identified, ensure employees know and understand the hazardsfor each and every job and process.

Design the workplace to improve employees' ability to beproductive without error or accidents for extended time periods.Proper workplace design improves both safety and productivity.Focus on all physical aspects of the work environment,including:

Size and arrangement of work space

Physical demands of the tasks to be performed

Design of tools and other devises

The fundamental goal of workplace design.

Hazard Prevention and Control. In addition to a well-designedworkplace, implement and conduct an ongoing program to preventaccidents based on the identified loss exposures. The following areexamples of components of this type of program:

Regular and thorough maintenance of equipment and vehicles

Instruction for employees on the use and maintenance of personalprotective equipment

Training for employees in proper procedures for handlingspecific situations.

Safety and Health Training and Education. It is important thatthe entire staff — including mangers and supervisors, employees,outside contractors, part-time and temporary employees, andvolunteers — be properly trained in safety. Consider the followingwhen developing a training program:

Allow only properly authorized employees who have undergonetraining to perform any job task.

Ensure no employees do any job that appears unsafe.

Conduct emergency-preparedness drills for all employees.

Pay particular attention to employees learning new operations toensure they possess the proper job skills and awareness ofhazards.

Train supervisors and managers to recognize hazards andunderstand their responsibilities.

Successful organizations integrate accident prevention or safetyefforts into their operations, culture, and policies. A balancedapproach to managing safety, quality, and productivity maximizesprofitability and improves an organization's ability to compete ina global economy.

Conducting a best practices risk control program requires time,effort, and resources. However, keep in mind that a dedication torisk control pays off in increased worker safety, higherproductivity, lower insurance premiums, and increased savings.