Deck 14: Risk Management and Worker Protection

Question 1

Calculating Incidence Rates
An organization's leaders frequently compare their safety results to other organizations in their industry and to their own organization over time. However, companies vary widely in size, making comparisons difficult and perhaps meaningless.
Take two manufacturing companies as an example:
• Company A has 2,500 employees and incurred 45 recordable accidents.
• Company B has 200 employees and incurred 7 recordable accidents.
Which company is running a safer operation? It looks like Company B because it had fewer injuries. But Company A employs a lot more workers. How can you compare the two?
There is a useful formula that easily determines the answer to this question. The incidence rate of injuries and illnesses can be computed as follows:
incidence rate
= (number of injuries and illnesses × 200,000)
÷ employee hours worked
The 200,000 hours in the formula represents the equivalent of 100 employees working 40 hours per week, 50 weeks per year and provides the standard base for the incidence rates. Therefore, no matter how many employees a company has, it is possible to compare incidence rates within an industry or over time.
So, which company is doing a better job? Let's calculate their incidence rates:

Now we can see that Company B is incurring injuries at the rate of 3.5 for every 100 workers, while Company A is incurring only 1.8 injuries for every 100 workers. So, Company A is keeping its workers safer. You can use the same formula to compute incidence rates for all recordable injuries, injuries with lost work days, and any other category of illnesses or injuries.
Each year, the Bureau of Labor Statistics publishes national incidence rates detailed by industry and employer size to help companies track their results against others in the same industry or of similar size. OSHA also uses this information to identify worksites with high incidence rates so that stepped-up enforcement and preventive action can be taken.
Now that you understand how incidence rates can be computed, answer the following questions:
How might safety committees use this information when working on accident prevention programs? Could an HR department provide any assistance?

Answer 1

Calculation of incidence rates in an organization has become easier with the help of a formula. This formula calculates the incidence rate by multiplying 200,000 by the number of injuries recorded in a year and then divides this by total employees work hours. This way a company gets the track of the incidents and can compare it with present and previous rates of incidences. This helps the company to draft more accident preventive policies to ensure worker's safety and health in the organization.
Safety committees might use this information when working on accident prevention programs in a way that the committee can have a detailed information about the types of incidents occurred and its frequency in that particular year. The committee can also have a record regarding the increase or decrease of incidents in the organization by comparing the incidence rates of consecutive years together. These all information can help safety committees to update their worker safety policies and procedures.
An HR department can provides its assistance by making available already drafted the HR policies to the safety committee. This information about the existing safety policies will help the committee to make necessary changes and modifications in the workers safety and health issue of the organization.

Question 2

Building a Culture of Safety
The construction industry accounts for the most workplace fatalities of any sector and is generally considered a high-risk environment. One construction firm, Messer Construction, decided to address this problem by implementing a comprehensive safety program called Safety4Site for its employees and subcontractors. A major focus of the program was creating a safety culture to improve safety awareness and prevent injuries.
Safety culture has three interdependent elements-behavior (actions taken by employees that are safe or unsafe), person (employee perceptions and attitudes about safety), and environment (organizational safety management systems). Messer Construction's approach included all three aspects and was aimed primarily at reducing incidents of the four major OSHA hazards in construction: falls, struck by, caught in or caught between, and electrocution.
The three key pieces of Messer's program were:
1. Universal use of eye protection. All employees were required to wear safety glasses when on a project site.
2. Daily safety talks. Called toolbox huddles, these daily briefings reminded employees of important safety precautions and discussed any incidents that had occurred.
3. Employee accountability. Based on 20 identified unsafe behaviors, all employees (managers as well as craftspeople) were expected to report any violations they witnessed on a project site.
Before the program was launched, managers participated in a three-hour implementation training session, and all employees received four hours of hazard training. To emphasize expected compliance, any employee who committed one of the 20 unsafe behaviors would be taken off the job site for a day and upon returning the following day would lead the toolbox huddle before beginning work again. Second violations would result in a 30-day unpaid suspension. Messer's management was obviously serious about ensuring that everyone worked safely.
Data collected four years after the program's introduction showed a 66% drop in violations over that time period. Managers identified and reported 60% of violations, 35% were reported by designated safety coordinators, and 5% were reported by front-line employees. Managers were actively involved in safety matters and committed to the program. Surveys taken after four years showed that 99% of workers were aware of the overall safety program. Most participants had positive views about Messer's safety culture and performance. An important outcome was that 99% of workers knew that they were accountable for their safety on the job site, and 79% felt responsible for their coworkers' safety.
Managers stated that safety measures were a higher priority than the operating budget or meeting scheduled build dates. In fact, they saw these safety efforts as a long-term program that would save money and reduce injuries. Further, the vast majority of workers stated that they would not take risks just to get a job done. The only change recommended by employees was to provide them with safety incentives or rewards.
Overall, Messer Construction instilled a safety culture that will give workers peace of mind knowing that their safety is nonnegotiable. They can build buildings with Safety4Site.
What could be done to increase front-line workers' reports of violations? Why might they be reluctant to report violations they witness

Answer 2

M Construction initiated a safety program called as Safety4Site to prevent accidents and injuries of the workers in the construction site. The company took this program very seriously and gave it a first priority rather than paying attention towards operating budget or meeting the production schedules. Only few incidents were reported after the survey and thus this led the workers and managers of the company feel safe and trustworthy as of their company thinks about their safety.
Front-line workers' reports for violations can be increased if they are taken into confidence and are well trained about the positive side of undertaking safety procedures while they work at the site. Front line workers are the ones who are always visible by the managers and this could be the reason of committing mistakes as they are under the impression of being constantly watched. This could lead a loss of confidence and fearful environment.
Front-line workers might be reluctant to report violations they witness might be because of their unionization. And they might not wish to pin point any of their colleagues committing mistake or violating safety norms. The workers might not wish to get into this trouble of reporting violations and diminish the friendship with other fellow workers.

Question 3

What can first-line supervisors do to help control workers' compensation costs, and how might they be rewarded for doing so?

Answer 3

Compensation is the money that an employee receives in return to his service towards an organization. This compensation is beared by the employer. Sometimes rewards are also given to the employees in addition to the regular compensation to them. Compensation cost includes money that is being given to an employee when he meets with an accident or gets injured during working at production unit.
First-line supervisors can help in controlling worker's compensation costs by making workers aware about the safety requirements of their job. The supervisors should make workers informed and well aware about the benefits and advantages of following safe and healthy working styles. This way they can control the working conditions and styles of the workers and in turn will prevent accidents and occurrence of injuries.
Supervisors can be rewarded for doing so by giving recognition for their excellent job. They could be given monetary benefits in their efforts to prevent organizational accidents and thus saving compensation cost of the company.

Question 4

Dangers of BYOD
Bring your own device (BYOD) policies are becoming common in most workplaces because employees want to stay in touch using their smartphones, and companies save resources by not having to provide technology to all employees. However, this trend is not without risk. Nearly half of Generation Y employees admit that they don't follow corporate security guidelines, and over 10% wouldn't report an incident in which their device has been compromised.
Think about all of the photos, messages, and other data you might store on your personal mobile phone or tablet. If your employer enforces strict procedures when employees terminate, you might find that your device has been wiped clean, and all of your personal data is lost when you leave the company; to protect company data, some firms do just that. It sounds like a harsh solution, but what's a company to do?
Here are some things to consider as managers create policies to deal with the BYOD trend:
• Are employees' personal devices as secure as office-based equipment?
• How can companies protect corporate data when employees can access it from mobile devices?
• Are there procedures in place to promptly and effectively address breaches from mobile devices?
• Has the company established a protocol to wipe a compromised device clean of all data files?
• What controls are in place to manage employees' use of apps to protect against malware and other attacks?
Setting up security measures to restrict access to sensitive company data from mobile devices, training employees in data security procedures, and coordinating between HR and IT personnel when employees terminate their employment are critical steps in efforts to protect vital data resources. Ensuring that employees understand the implications of using their own devices to access company data can prevent loss of personal data.
Consider the advantages and disadvantages of allowing employees to bring their own devices to work and answer the following questions:
How can companies encourage employees to report when their devices are compromised? How could HR departments assist with these efforts?

Question 5

What Is the Real Cost of Your iPhone?
Consumers often look for products with unique features or those that are very inexpensive. In response, companies try to find suppliers that can produce these products at the lowest cost so that they can sell them at a profit. What many consumers may not realize is that often the real cost of the product is not dollars and cents, but human loss and suffering.
Most electronics, including the wildly popular iPhone, are produced primarily in China and other developing nations. Safety and health laws in these countries lag behind those in the United States, and workers there are subjected to strenuous work schedules and poor working conditions. Workers are often housed in overcrowded dormitories. They are frequently required to work excessive overtime schedules-they often work seven days a week-and may be required to handle toxic chemicals while producing the electronic devices. Worker suicides occurred with alarming regularity at Hon Hai's facilities in recent years. Workers have also staged walkouts and pickets to obtain higher wages.
Companies such as Apple, HP, and Samsung deal with these suppliers because doing so is cheaper than manufacturing in the United States. It can take years to develop a productive working relationship with a supplier to ensure product quality and that delivery schedules are met. The companies are naturally reluctant to drop a supplier unless violations are serious and ongoing. Samsung recently determined that the majority of its suppliers fail to comply with safety regulations such as providing adequate safety equipment, conducting evacuation drills, and maintaining reasonable overtime schedules.
Auditing suppliers is now a regular practice for U.S.-based companies, and they are making an effort to reduce safety problems and worker abuse around the world. However, the allure of low-cost products and consumer demand for constant innovation make it difficult to put worker safety first. As long as customers continue to buy iPhones and other electronics and do not object to hazardous work conditions at production facilities, companies are not likely to be motivated to change their practices.
With worker safety issues in mind, consider the following questions:
How can consumers learn about supply chain issues and worker safety concerns when shopping for electronic devices? How could an HR department help?

Question 6

Calculating Incidence Rates
An organization's leaders frequently compare their safety results to other organizations in their industry and to their own organization over time. However, companies vary widely in size, making comparisons difficult and perhaps meaningless.
Take two manufacturing companies as an example:
• Company A has 2,500 employees and incurred 45 recordable accidents.
• Company B has 200 employees and incurred 7 recordable accidents.
Which company is running a safer operation? It looks like Company B because it had fewer injuries. But Company A employs a lot more workers. How can you compare the two?
There is a useful formula that easily determines the answer to this question. The incidence rate of injuries and illnesses can be computed as follows:
incidence rate
= (number of injuries and illnesses × 200,000)
÷ employee hours worked
The 200,000 hours in the formula represents the equivalent of 100 employees working 40 hours per week, 50 weeks per year and provides the standard base for the incidence rates. Therefore, no matter how many employees a company has, it is possible to compare incidence rates within an industry or over time.
So, which company is doing a better job? Let's calculate their incidence rates:

Now we can see that Company B is incurring injuries at the rate of 3.5 for every 100 workers, while Company A is incurring only 1.8 injuries for every 100 workers. So, Company A is keeping its workers safer. You can use the same formula to compute incidence rates for all recordable injuries, injuries with lost work days, and any other category of illnesses or injuries.
Each year, the Bureau of Labor Statistics publishes national incidence rates detailed by industry and employer size to help companies track their results against others in the same industry or of similar size. OSHA also uses this information to identify worksites with high incidence rates so that stepped-up enforcement and preventive action can be taken.
Now that you understand how incidence rates can be computed, answer the following questions:
How might reward programs for managers take into account incidence rates for injuries and illnesses? What could HR professionals do to facilitate any changes made to the reward system?

Question 7

Building a Culture of Safety
The construction industry accounts for the most workplace fatalities of any sector and is generally considered a high-risk environment. One construction firm, Messer Construction, decided to address this problem by implementing a comprehensive safety program called Safety4Site for its employees and subcontractors. A major focus of the program was creating a safety culture to improve safety awareness and prevent injuries.
Safety culture has three interdependent elements-behavior (actions taken by employees that are safe or unsafe), person (employee perceptions and attitudes about safety), and environment (organizational safety management systems). Messer Construction's approach included all three aspects and was aimed primarily at reducing incidents of the four major OSHA hazards in construction: falls, struck by, caught in or caught between, and electrocution.
The three key pieces of Messer's program were:
1. Universal use of eye protection. All employees were required to wear safety glasses when on a project site.
2. Daily safety talks. Called toolbox huddles, these daily briefings reminded employees of important safety precautions and discussed any incidents that had occurred.
3. Employee accountability. Based on 20 identified unsafe behaviors, all employees (managers as well as craftspeople) were expected to report any violations they witnessed on a project site.
Before the program was launched, managers participated in a three-hour implementation training session, and all employees received four hours of hazard training. To emphasize expected compliance, any employee who committed one of the 20 unsafe behaviors would be taken off the job site for a day and upon returning the following day would lead the toolbox huddle before beginning work again. Second violations would result in a 30-day unpaid suspension. Messer's management was obviously serious about ensuring that everyone worked safely.
Data collected four years after the program's introduction showed a 66% drop in violations over that time period. Managers identified and reported 60% of violations, 35% were reported by designated safety coordinators, and 5% were reported by front-line employees. Managers were actively involved in safety matters and committed to the program. Surveys taken after four years showed that 99% of workers were aware of the overall safety program. Most participants had positive views about Messer's safety culture and performance. An important outcome was that 99% of workers knew that they were accountable for their safety on the job site, and 79% felt responsible for their coworkers' safety.
Managers stated that safety measures were a higher priority than the operating budget or meeting scheduled build dates. In fact, they saw these safety efforts as a long-term program that would save money and reduce injuries. Further, the vast majority of workers stated that they would not take risks just to get a job done. The only change recommended by employees was to provide them with safety incentives or rewards.
Overall, Messer Construction instilled a safety culture that will give workers peace of mind knowing that their safety is nonnegotiable. They can build buildings with Safety4Site.
What rewards might be offered to front-line workers for working safely and preventing injuries? What rewards might be offered to job site managers who safely lead projects?

Question 8

What should an employer do when facing an OSHA inspection?

Question 9

Dangers of BYOD
Bring your own device (BYOD) policies are becoming common in most workplaces because employees want to stay in touch using their smartphones, and companies save resources by not having to provide technology to all employees. However, this trend is not without risk. Nearly half of Generation Y employees admit that they don't follow corporate security guidelines, and over 10% wouldn't report an incident in which their device has been compromised.
Think about all of the photos, messages, and other data you might store on your personal mobile phone or tablet. If your employer enforces strict procedures when employees terminate, you might find that your device has been wiped clean, and all of your personal data is lost when you leave the company; to protect company data, some firms do just that. It sounds like a harsh solution, but what's a company to do?
Here are some things to consider as managers create policies to deal with the BYOD trend:
• Are employees' personal devices as secure as office-based equipment?
• How can companies protect corporate data when employees can access it from mobile devices?
• Are there procedures in place to promptly and effectively address breaches from mobile devices?
• Has the company established a protocol to wipe a compromised device clean of all data files?
• What controls are in place to manage employees' use of apps to protect against malware and other attacks?
Setting up security measures to restrict access to sensitive company data from mobile devices, training employees in data security procedures, and coordinating between HR and IT personnel when employees terminate their employment are critical steps in efforts to protect vital data resources. Ensuring that employees understand the implications of using their own devices to access company data can prevent loss of personal data.
Consider the advantages and disadvantages of allowing employees to bring their own devices to work and answer the following questions:
What is your opinion on using your own mobile phone or tablet to perform your job duties?

Question 10

What Is the Real Cost of Your iPhone?
Consumers often look for products with unique features or those that are very inexpensive. In response, companies try to find suppliers that can produce these products at the lowest cost so that they can sell them at a profit. What many consumers may not realize is that often the real cost of the product is not dollars and cents, but human loss and suffering.
Most electronics, including the wildly popular iPhone, are produced primarily in China and other developing nations. Safety and health laws in these countries lag behind those in the United States, and workers there are subjected to strenuous work schedules and poor working conditions. Workers are often housed in overcrowded dormitories. They are frequently required to work excessive overtime schedules-they often work seven days a week-and may be required to handle toxic chemicals while producing the electronic devices. Worker suicides occurred with alarming regularity at Hon Hai's facilities in recent years. Workers have also staged walkouts and pickets to obtain higher wages.
Companies such as Apple, HP, and Samsung deal with these suppliers because doing so is cheaper than manufacturing in the United States. It can take years to develop a productive working relationship with a supplier to ensure product quality and that delivery schedules are met. The companies are naturally reluctant to drop a supplier unless violations are serious and ongoing. Samsung recently determined that the majority of its suppliers fail to comply with safety regulations such as providing adequate safety equipment, conducting evacuation drills, and maintaining reasonable overtime schedules.
Auditing suppliers is now a regular practice for U.S.-based companies, and they are making an effort to reduce safety problems and worker abuse around the world. However, the allure of low-cost products and consumer demand for constant innovation make it difficult to put worker safety first. As long as customers continue to buy iPhones and other electronics and do not object to hazardous work conditions at production facilities, companies are not likely to be motivated to change their practices.
With worker safety issues in mind, consider the following questions:
What can companies do to ensure that their suppliers comply with worker safety and health regulations? How should HR professionals ensure that safety and health are key issues in the workplace?

Question 11

Building a Culture of Safety
The construction industry accounts for the most workplace fatalities of any sector and is generally considered a high-risk environment. One construction firm, Messer Construction, decided to address this problem by implementing a comprehensive safety program called Safety4Site for its employees and subcontractors. A major focus of the program was creating a safety culture to improve safety awareness and prevent injuries.
Safety culture has three interdependent elements-behavior (actions taken by employees that are safe or unsafe), person (employee perceptions and attitudes about safety), and environment (organizational safety management systems). Messer Construction's approach included all three aspects and was aimed primarily at reducing incidents of the four major OSHA hazards in construction: falls, struck by, caught in or caught between, and electrocution.
The three key pieces of Messer's program were:
1. Universal use of eye protection. All employees were required to wear safety glasses when on a project site.
2. Daily safety talks. Called toolbox huddles, these daily briefings reminded employees of important safety precautions and discussed any incidents that had occurred.
3. Employee accountability. Based on 20 identified unsafe behaviors, all employees (managers as well as craftspeople) were expected to report any violations they witnessed on a project site.
Before the program was launched, managers participated in a three-hour implementation training session, and all employees received four hours of hazard training. To emphasize expected compliance, any employee who committed one of the 20 unsafe behaviors would be taken off the job site for a day and upon returning the following day would lead the toolbox huddle before beginning work again. Second violations would result in a 30-day unpaid suspension. Messer's management was obviously serious about ensuring that everyone worked safely.
Data collected four years after the program's introduction showed a 66% drop in violations over that time period. Managers identified and reported 60% of violations, 35% were reported by designated safety coordinators, and 5% were reported by front-line employees. Managers were actively involved in safety matters and committed to the program. Surveys taken after four years showed that 99% of workers were aware of the overall safety program. Most participants had positive views about Messer's safety culture and performance. An important outcome was that 99% of workers knew that they were accountable for their safety on the job site, and 79% felt responsible for their coworkers' safety.
Managers stated that safety measures were a higher priority than the operating budget or meeting scheduled build dates. In fact, they saw these safety efforts as a long-term program that would save money and reduce injuries. Further, the vast majority of workers stated that they would not take risks just to get a job done. The only change recommended by employees was to provide them with safety incentives or rewards.
Overall, Messer Construction instilled a safety culture that will give workers peace of mind knowing that their safety is nonnegotiable. They can build buildings with Safety4Site.
Visit the Messer Construction company website at http://messer.com/process/safety4site. How has the Safety4Site program impacted Messer's business outcomes? Has the company been awarded any recognition for its efforts?

Question 12

As the HR manager of a distribution and warehouse firm with 600 employees, you plan to discuss a company wellness program at an executive staff meeting next week. The topics to cover include what a wellness program is, how it can benefit the company and employees, and the process for establishing it. To aid in developing your presentation to the executives, consult the website www.welcoa.org and other applicable websites you can locate.

Question 13

What should be included in disaster planning for a large employer in Annapolis, Maryland, that is concerned about natural disasters such as floods and snowstorms that might shut down the company and parts of the city?

Question 14

The number and magnitude of data breaches have been increasing at retailers, banks, government agencies, and other institutions. The management team at your company has decided to develop plans for dealing with data security breaches. Because your company has many employees who telecommute and you employ a high percentage of contract and temporary employees, there are many factors to consider.
A. What policies would you recommend to help ensure that insiders (including direct and indirect workers) do not steal sensitive corporate data or compromise the integrity of the computer system?
B. Write a suggested procedure for dealing with computer and data access when an employee (including direct and indirect workers) terminates employment. What steps should be taken to protect the company's IT data?