Has your construction business experienced rising workers’ compensation costs due to on-the-job accidents? If so, your first response might be to try to reduce insurance costs and spending. While this may seem like a good approach, focusing on safety will likely produce better results.

A sound, competency-based safety program can yield significant tangible benefits, including:

• Return on investment, yielding direct bottom-line benefits
• Compliance with OSHA construction requirements, therefore reducing the threat of OSHA fines
• Fewer accidents, which reduces workers’ compensation costs
• Identification of root cause to prevent reoccurrence, providing a job site that is free from recognized hazards
• Improved employee morale and retention; auditing keeps your program effective and drives continuous improvement
• Employees who are fully engaged in every aspect of their job, producing high-quality craftsmanship

4 Steps to Build a Solid Construction Safety Program

1. Develop Programs Required by OSHA Standards

In addition to being a requirement for those in the construction industry, OSHA standards provide a pathway to incident reductions. Examples of accidents that stem from poorly developed or implemented OSHA programs include: 

• Not using a proper fall restraint system when working at heights more than 6 feet
• Improper or lack of use of personal protective equipment (PPE) when working with hazardous job site materials
• Poor lifting techniques resulting in back strains

OSHA construction standards require that written programs be developed and then communicated to workers. Experience shows that companies with thoroughly developed, OSHA-compliant programs have fewer accidents, more productive employees and lower workers’ compensation costs.

2. Integrate Programs into Daily Operations

Effective safety programs go beyond just policies. Transitioning from written guidelines to actual implementation is key to positively impacting your company's finances. To succeed, you need a well-defined strategy, transparent communication with employees, flawless execution, and a culture that motivates and rewards workers to do their best.

Prioritize supporting your site foreman to ensure the success of your safety initiative. Their understanding and commitment to the safety program are key determinants of its effectiveness. Offering training to enhance their knowledge and skills is essential for achieving success without unnecessary resource drain.

3. Investigate all Injuries & Illnesses

Reducing accidents is the key to lowering workers’ compensation costs. Preventing accidents is significantly enhanced when they are fully investigated instead of simply being reported.

Accident reports present facts, while accident investigations dive deeper to identify the root cause of an incident and make improvements to prevent a reoccurance. To stop your workers' compensation costs from rising, have a robust accident investigation process that includes corrective actions integrated into daily operations. Moreover, providing training is valuable as a supervisor skilled in incident analysis is a better problem solver for all types of project management issues.

All accidents should be investigated to determine the root causes and contributing factors. While some may argue that investigating only costly incidents is sufficient, focusing solely on recordable OSHA 300 log cases ignores a crucial accident category: first aid-only incidents. The total costs and volume of these minor incidents can add up. A high frequency of minor incidents might signal an underlying issue that could eventually lead to a major accident. It's essential to address both the frequency and severity of incidents to prevent future occurrences.

4. Prioritize Training & Reassessment

Finally, focus on training and auditing your program for continuous improvement. Training plays a significant role in safety and reducing workers’ compensation costs. The goal of training is to develop competent people who have the knowledge, skill and understanding to perform assigned job responsibilities. Competence, more than anything else, will drive down costs. Site supervisors must have the knowledge and ability to integrate programs into each job so employees know thier expectations.

Once the programs are developed and implemented, review them regularly to ensure they're relevant and effective. Adapting how you manage a safety program may be necessary, but taking this step could lead to a reduction in workers’ compensation claims and costs.

We're Here to Help Construction Owners Prevent Risks

Connect with a member of our team for guidance to establish a strong safety program that minimizes your workers’ compensation exposures.