Case Studies
Baker Electric
Baker Electric, Inc. is a fourth generation, family-owned and operated company, in business since 1938. They are a full-service electrical contractor that has won contracts throughout southern California on projects ranging from military installations to casinos.
Problem:
Baker Electric, Inc. had $370,000 in worker’s compensation losses. The organization was in a high growth mode, hiring new employees to handle all of the contracts they were earning. The foremen and the workers needed training on how to work safely. In addition, they were unsure how to interpret and apply the relevant rules and regulations. Although they knew safety was important to the company’s management, they were not following a safety program and were not focused on safety performance. Should they hire a full time safety director or hire an outside firm?
SMART Solution:
SMART developed a customized safety system for Baker Electric. They assigned a three-person safety team to implement new employee orientation, foreman orientation, inspection protocols, disciplinary action, Foreman’s Meeting, Management Meetings and monthly program evaluation. SMART also audited all the jobsites and implemented a proactive training program based on un-safe practices that SMART observed in the field. SMART aggressively managed all claims, supervising medical treatment and controlling costs for all incidents or accidents.
Evaluation:
SMART reduced Baker’s worker’s compensation losses 94%, saving them hundreds of thousands of dollars annually. In total, they helped Baker Electric save over $1,000,000 on losses. SMART accomplished this by effectively changing the worker’s and foremen’s attitudes about safety. Foremen now use SMART as a resource, calling to ask advice whenever they are in a questionable situation. Even though they employed a team of three safety professionals, SMART cost a fraction of the amount of a full-time Safety Director.
Lessons Learned:
Outsourcing your safety program can cost less than a full-time Safety Director and achieve superior results.
Recommendation:
“I wouldn’t hesitate to recommend SMART Safety Group. SMART gave us clear direction and implemented a program reducing our losses an estimated 94%. Knowing that my workers are going home safely lets me sleep better at night.”
– Ted Baker, President
Johnson Finch & McClure Inc.
Johnson Finch & McClure Inc. (JFM) is a premier drywall services and acoustic ceiling construction company, located in San Diego. For more than 20 years, JFM has been a proven choice of general contractors, architects and developers.
Problem:
Johnson Finch & McClure wanted to become more competitive bidding on projects and attracting the best workers. When they approached SMART Safety Group, JFM had a “do it yourself” safety program. They were handling safety and compliance issues in-house and, as a result, had costly workman’s compensation claims. This resulted in a high Experience Modification Rate (X-mod or EMR) causing the company to be charged outrageous insurance premiums just as their workforce was expanding.
SMART Solution:
As with their other clients, SMART Safety Group designed, developed and managed a customized safety system for JFM. SMART’s safety team worked with key people–field workers up to executive management–in order to implement the safety system. They propelled safety from an agenda item in meetings, to a core value of the company. The foundation of the safety system consisted of a strong training and development program; followed by reinforcement of the training out in the field. The end result was JFM went from being reactive about safety issues, to being proactive. The field workers now use their SMART safety team as a resource, asking advice on how to safely complete a task before putting themselves in an unsafe situation.
Evaluation:
JFM’s EMR went down 41 points, resulting in a significant savings in their insurance premiums. Workers’ compensation insurance premiums are adjusted by the Experience Modification rate (EMR). Lower rates, mean that fewer or less severe accidents have occurred than were anticipated, resulting in lower insurance premiums.
Lessons learned:
Developing a “train-reinforce-reward” model of safety can significantly decrease a company’s insurance premiums.
Recommendation:
“I can’t control my insurance rates, but with SMART I can control my losses. Our Experience Modification Rate went down 41 points and we know that it is going down again next year.”
-Mark Finch, President of Johnson Finch & McClure Inc.
