The Importance of Safety Programs for Construction Companies

Protect your Employees and Your Profits

Many people are quick to say, “safety first,” however, growing construction companies often disregard the importance of creating and implementing a safety program. The assumption that safety program isn’t needed until there are 50+ employees is simply not true. Implementing just a few simple policies can have a great impact on workers’ safety and health, ultimately leading to less injury and more
profitability.

While many companies don’t see the benefit of developing a comprehensive safety program, the ROI can be clearly argued based on the size, nature, and demographics of the construction industry. The construction industry by nature deals with hazardous situations, from heavy machinery to chemical exposure, the risk by nature is greater than that of the average worker. According to recent data from the National Workers Compensation Program, the construction industry reports injury rates approximately 71% higher an injury rates across all other industries. 

Besides the high-risk nature of the construction industry, extreme labor shortage also led to increased risk for injury. Of the 10.4 million unfilled jobs in the U.S. by late 2021, 358,000 were in Construction, leading to an influx of inexperienced workers. A study commissioned by the Center for Construction Research and Training found that 44.5% of injury claims were filed by workers with less than a year’s
experience in construction.

Additional key findings of that study found the following:

• Small construction companies (5 employees or less) had more injuries to inexperienced workers
than that of larger construction companies.

• Severity is less an issue than frequency—injuries requiring hospitalization and major medical
treatment were only slightly higher than the proportion of serious injuries among all workers.

Beyond the on-going labor shortage, 40% of all construction workers are aged 45-64, leading to an aging workforce. The aging workforce leads to higher accident rates resulting in more costly, severe injuries. Older, more-experienced workers are more likely to follow safety precautions, therefore injuries tend to
be rare, however more severe. The physical demands of construction work have been proven to cause more chronic health conditions over time compared to white-collar workers.

Workers’ compensation claims pose a costly risk to any business, but as clearly identified it becomes an even larger risk to the profitability to those in the construction industry. Workers’ compensations claims are often settled for thousands (but can quickly grow to hundreds of thousands and even greater) of
dollars, which could truly devastate a business, especially a growing business who still hasn’t established financial security. Even if a company can survive the financial impacts, large or numerous claims can have long-term effects on its insurability and harm the company’s reputation – either to work for or
work with.

ANOTHER FACTOR FOR SAFTY PROGRAMS
Outside the risk of costs associated with workers compensation claims, OSHA is constantly visiting construction sites to ensure that projects are safe and abide by healthful working conditions. As of January 2022, the average fine for an OSHA violation cost $14,502, which can grow exponentially, as failure to correct the violation could result in an additional $14,502 fine per day. Most small companies cannot absorb these types of unplanned costs without significant impact to the company’s bottom line. Establishing and implementing a safety program often costs less than just one OSHA fine.

Clearly, the cost of not implementing a safety program is a risk many companies cannot afford to take. More important than protecting your company’s bottom line and profitability, the health, safety, and well-being of employees is priceless. Employees are the greatest resource and investment to any company and ensuring they work in safe conditions should always be on the forefront.

WHERE DO YOU START?
There are many different consulting agencies and online providers that can create a comprehensive safety program, however even starting with a simple safety plan can help get your company in the right direction. Starting out with a 100% policy ensuring all employees wear protective eyewear and helmets
on each jobsite can prevent serious injuries each day. Taking the next step to create a more comprehensive safety program only further reduces the risks, helping to keep your workforce safe and productive.

To get started, referring to OSHA’s “four pillars of safety are a great starting point for small-to-mid size
construction companies. OSHA’s four pillars are made up of the following:
I. Management commitment and worker involvement
II. Worksite analysis
III. Hazard prevention and control
IV. Training of workers, supervisors, and managers

When breaking down OSHA’s four pillars of safety, the first is Management Commitment and Worker Involvement, simply meaning it all starts with the commitment to safety by management and encouraging employee buy-in. A successful safety program can only be established if it is driven by
management and employees are on-board. You may find employees hesitant to abide by the new safety protocols, however, constant encouragement, correction and communication from management will help provide the guide for how projects should be managed.

Secondly, Worksite Analysis identifies that all projects should continually be analyzed and monitored for safety concerns and hazards. Understanding the potential risks of each jobsite will allow you and your team to safely address the concerns and create a plan to mitigate any risk of injury.

The third pillar is Hazard Prevention and Control focuses on putting effective controls in place to protect workers from potential hazards.
To effectively control and prevent hazards, employers should:
•  Involve workers, who often have the best understanding of the conditions that create hazards and insights into how they can be controlled.
•  Identify and evaluate options for controlling hazards, using a “hierarchy of controls.”
•  Use a hazard control plan to guide the selection and implementation of controls and implement controls according to the plan.
•  Develop plans with measures to protect workers during emergencies and non-routine activities.
•  Evaluate the effectiveness of existing controls to determine whether they continue to provide protection, or whether different controls may be more effective.
•  Review new technologies for their potential to be more protective, more reliable, or less costly.

Finally, the last step is Training of Workers, Supervisors and Managers. Safety training is not a one and done focus. It is important to dedicate time and resources for on-going training of employees, supervisors, and managers. This not only keeps safety top of mind to all team members, but it allows for on-going conversations of best practices and industry’s current safety guidelines.

When developing your comprehensive safety program keep the key factors in mind:
•  Track and document all safety incidents, including incident responses
•  Analyze the root cause of the accident
•  Collect and maintain data for OSHA inspections
•  Incorporate behavior-based safety training by identifying trends, fixing problems, and rewarding compliance
•  Communicate safety issues in real time

In the end while it may be easy to sidestep implementing a comprehensive safety program, it is critical to remember the high cost at stake in doing so, not just as it relates to profits and the bottom line, but most importantly in the safety and well-being of your employees. No one wants to take a shortcut that
could ultimately lead a severe or fatal injury. While there is an investment associated with an ongoing safety program, the dedication to your business and employees is priceless.