Public Risk April 2017

PUBLISHED BY THE PUBLIC RISK MANAGEMENT ASSOCIATION APRIL 2017

KILL THE DISTRACTIONS,

SAVE YOUR EMPLOYEES PAGE 6

ALSO IN THIS ISSUE

CATASTROPHIC CLAIMS Start to Finish

PAGE 10

AN EMPLOYEE RECOGNITION PROGRAM THAT FOCUSES ON THE POSITIVE PAGE 15

The Public Risk Management Association promotes effective risk management in the public interest as an essential component of public administration.

APRIL 2017 | Volume 33, No. 4 | www.primacentral.org

CONTENTS NO

DON’T TEXT

DISTRACTIONS

AND DRIVE

STOP

KEEP YOUR EYES

MULTITASKING

ON THE ROAD

PRESIDENT Terri L. Evans Risk Manager City of Kingsport Kingsport, TN PAST PRESIDENT Dean R. Coughenour, ARM Risk Manager City of Flagstaff Flagstaff, AZ PRESIDENT-ELECT Amy J. Larson, Esq. Risk and Litigation Manager City of Bloomington Bloomington, MN DIRECTORS Brenda Cogdell, AIS, AIC, SPHR Risk Manager, Human Resources City of Manassas Manassas, VA

Kill the Distractions, Save Your Employees

6

Scott J. Kramer, MBA, ARM City/County Director of Risk Mgmt Montgomery County Commission Montgomery, AL Jani J. Jennings, ARM Insurance & Safety Coordinator City of Bellevue Bellevue, NE Scott Moss, MPA, CPCU, ARM, ARM-E, ALCM P/C Director Oregon Public Entity Excess Pool Salem, OR Lori J. Gray Risk Manager County of Prince William Woodbridge, VA Donna Capria, CRM, CIC, AINS Risk & Insurance Coordinator WaterOne of Johnson County Lenexa, KS

By Tim McCarty, BSc, MSc, ARM, CSP

NON-VOTING DIRECTOR Marshall Davies, PhD Executive Director Public Risk Management Association Alexandria, VA EDITOR Jennifer Ackerman, CAE Deputy Executive Director 703.253.1267 • jackerman@primacentral.org ADVERTISING Jennifer Ackerman, CAE 703.253.1267 • jackerman@primacentral.org

Catastrophic Claims

START TO FINISH

By Rachel Paul, J.D. M.S.C.C

IN EVERY ISSUE

10

15

An Employee Recognition Program that Focuses on the Positive By Dan Hurley, CSP, ARM-P, MS, and Jonathan P. Wright

| 4 NEWS BRIEFS | 19 ADVERTISER INDEX

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Copyright 2017 Public Risk Management Association

APRIL 2017 | PUBLIC RISK

1

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MESSAGE FROM PRIMA PRESIDENT TERRI L . EVANS

C

Change = Lifelong Learning

hange is difficult for most of us.

We are comfortable with what we know, where we go, what we do and who we do it with. Upend that, and it will cause consternation.

We all hear that “change is good.” We have read articles regarding change and overcoming the stress related to change. But how does one really do that? How do you overcome the dread when faced with a change that was not your idea and is not really what you want?

We all have a fairly constant dialog going on in our minds. We cast judgement, evaluation and possibly attach feelings to every interaction we have. Think about driving. That jerk just cut you off. That old lady needs to at least go the speed limit. Why are all the lights timed so that you have to stop at each one? Some of us are more likely to assess negative connotations to our interactions than others. Some of us have an easier time letting things roll off our backs. Some of this is inherent to the way we were raised or the normal focus of our personality, but some of it can be controlled.

It’s all in how we choose to react.

Think about the following scenario. The County has decided to move the risk function from human resources to finance. You have two ways you could react. You could say, “I have been in human resources for 15 years! All the finance director ever thinks about is saving money. She never considers the human side of things. All the documentation she will want, all the number crunching! How will I ever have time to do that?

It’s all I can do to keep up with what I have now!

Plus, all those employees are so sour and never seem to smile. I bet they are miserable.”

Or, you could embrace the change and say, “This is really going to be different. I’ve been in human resources for 15 years. I hope I can show the

If we want to grow knowledge and evolve in our profession, it is imperative that we strive to stay positive, look for new information and take every opportunity to embrace change.

finance director all the ‘behind the scenes’ things risk management does to save money, since that is rightly her main focus. I have the expenditure information, and while it will be challenging to adjust it to a different format, I will be learning a different way to look at the same old data. I may see some trends or issues I wasn’t aware of. Since I’m not a financial guru, there is a lot for me to learn here, but I bet I have a lot to teach about risk management as well. Maybe I can show the human element of risk, allowing my new co-workers to understand how all the different pieces come together to make an effective program.”

You decide to take change and make it an opportunity to learn. A good risk manager understands they will never know everything. Sometimes, we learn what NOT to do, but often, if our minds and hearts are open, we can learn about things we didn’t even realize we needed to know.

If we want to grow knowledge and evolve in our profession, it is imperative that we strive to stay positive, look for new information and take every opportunity to embrace change. We are often the cause of change in others’ lives – when a new or updated standard comes out, when an investigation uncovers a need for a new policy or procedure, or when new studies show a new or better way of doing a task. Remembering how difficult change can be for others will help us develop our message of change to others.

Remember, change is inevitable. We can choose to be the facilitator of positive response to change in our organizations and lead, as we do with all aspects of our jobs, with an attitude of positivity.

We can choose to be part of the problem and not accept the changes. The choice is entirely ours.

And now, for a few words from folks who are much smarter than I! Change your thoughts and you change your world – Norman Vincent Peale If you don’t like something, change it. If you can’t change it, change your attitude – Maya Angelou Intelligence is the ability to adapt to change – Stephen Hawking To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly – Henri Bergson Change in all things is sweet – Aristotle

Terri L. Evans 2016–2017 PRIMA President Risk Manager City of Kingsport, Tenn.

APRIL 2017 | PUBLIC RISK

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NEWS BRIEFS

NEWS Briefs

SAN JOSE, CALIF., FLOODS: DAMAGES EXPECTED TO TOP $73 MILLION San Jose, Calif., officials estimated the devastating Coyote Creek flooding caused at least $73 million in damage to public and private property, but that figure is expected to grow as officials wade through three ravaged neighborhoods, reports the San Jose Mercury News.

“This is the first step in seeking potential state and federal emergency assistance,” said Dave Sykes, director of the city’s Emergency Operations Center. “I believe the number we have given is fairly conservative. It wouldn’t surprise me if these costs go up.”

An application to the Santa Clara County Office of Emergency Services—the first step in seeking state and federal aid—tallied the initial costs of the flooding at $50 million in private damage and $23 million to public property, including Happy Hollow Park. It’s unclear when any aid might be approved.

“We’re going to identify those short, medium and long-term tasks that we need to get accomplished to ensure this never gets repeated,” Liccardo said in an interview. “We will be assembling an action plan focusing on the short-term, most urgent issues initially.”

The public meetings will examine why residents weren’t alerted about the flooding until after contaminated water rushed into their homes, rising up to their chests.

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PUBLIC RISK | APRIL 2017

“

We’re going to identify those short, medium and long-term tasks that we need to get accomplished

“

Nearly a week after 14,000 residents were evacuated, San Jose Mayor Sam Liccardo said he will ask the City Council to set a date for a series of public meetings to determine, among other things, why most people received no warning from the city before floodwaters devastated neighborhoods in Rock Springs, near William Street Park and along Old Oakland Road.

to ensure this never gets repeated… We will be assembling an action plan focusing on the short-term, most urgent issues initially.

Sam Liccardo, San Jose Mayor

STUDY: HUMANS TO BLAME FOR 84 PERCENT OF WILDFIRES, LONGER WILDFIRE SEASON Wildfires are getting bigger, more frequent and occurring during a larger portion of the calendar year. And new research suggests humans are largely to blame, reports UPI.

ARIZONA’S $12 MINIMUM WAGE UNANIMOUSLY UPHELD BY STATE’S SUPREME COURT Arizona’s minimum-wage law will stand, after a unanimous Arizona Supreme Court rejected a challenge to the voter-approved law, reports the Arizona Republic.

“The people win again. Unanimously,” attorney Jim Barton said in an email as the court’s order came down.

He represented the committee that brought Proposition 206 to the ballot in November.

The state Attorney General’s Office also defended the law.

Attorney General Mark Brnovich praised the ruling in a statement issued by his office.

“As attorney general, my job is to uphold the rule of law,” he said. “The constitution is designed to protect our rights. It’s not a tool to be used to undermine the will of the people.”

Researchers looked at records for every wildfire that required firefighting between 1992 and 2012. Of the 1.5 million blazes, humans were responsible for sparking 84 percent. Humans were also to blame for nearly half, 44 percent, of the acreage burned over the 20 years.

Lightning was still responsible for more than half of the acreage burned, but researchers say humans are expanding the “fire niche” into places where lightning isn’t capable of starting wildfires.

“Humans are expanding fires into more locations and environmental conditions than lightning is able to reach,” researchers wrote in their new paper on the subject, published this week in the journal PNAS. “Human ignitions have expanded the fire niche into areas with historically low lightning strike density.”

Researchers say wildfire mitigation efforts would be well-served to focus on limiting the human-led expansion of the fire niche. Such a task will be increasingly difficult as more people move to the Sun Belt and the suburbs continue to expand.

The growth of the wildland-urban interface— the percentage of homes and people living in and on the edge of wild lands—is a major

challenge for forest managers and those tasked with fighting wildfires. The interface is predicted to double from 9 to 18 percent by 2030.

“It’s generally pretty well known that people start a lot of fires; everything from campfires to burning yard waste to accidental fires in homes and other structures,” Bethany Bradley, a researcher at the University of Massachusetts Amherst, said in a news release. “But in the past, I used to think of ‘wildfire’ as a process that was primarily natural and driven by lightning. This analysis made me realize that human ignitions have an extraordinary impact on national fire regimes.”

Natural wildfires sparked by lightning are largely relegated to the summer season, when conditions are most likely to be hot and dry.

Manmade fires have extended the fire season into the fall and spring.

Researchers say global warming is likely to increase the risk of wildfire in many parts of the American West, magnifying the detrimental effects of humans on national fire regimes.

“We saw significant increases in the numbers of large, human-started fires over time, especially in the spring,” Bradley said. “I think that’s interesting, and scary, because it suggests that as spring seasons get warmer and earlier due to climate change, human ignitions are putting us at increasing risk of some of the largest, most damaging wildfires.”

Chief Justice Scott Bales issued the order, stating the seven-member court unanimously rejected the arguments from business groups that the law is unconstitutional. A detailed explanation of the court’s reasoning will come later, Bales wrote.

The Arizona Chamber of Commerce and Industry led the challenge, asking the court to overturn the law, which will raise Arizona’s minimum wage to $12 an hour by 2020. It also requires employers to offer mandatory paid sick leave as of July 1.

APRIL 2017 | PUBLIC RISK

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KILL THE DISTRACTIONS, NO

DISTRACTIONS

KEEP YOUR EYES

ON THE ROAD

6

PUBLIC RISK | APRIL 2017

DON’T TEXT AND DRIVE

STOP

MULTITASKING

SAVE YOUR EMPLOYEES

T

BY TIM MCCARTY, BSC, MSC, ARM, CSP HE STATISTICS SHOULD BE DETERRENT ENOUGH. Motor

vehicle deaths in the U.S. were eight percent higher in 2015 than

2014—the largest year-over-year increase in half a century. More than 100 people were killed on U.S. roads every day in 2015. More than

12,000 were seriously injured. Every day. The National Safety Council

(NSC) cites economic improvement among possible causes. Higher employment

and favorable gas prices often lead to increases in the number of miles Americans choose to drive. Yet we also benefit from safer roads and a vehicle fleet that is

increasingly equipped with state-of-the-art safety features, from antilock brakes and stability control to anti-collision and lane-departure systems. In part, these

remarkable advances are being defeated by poor driving behavior. Alcohol use

and speeding are the traditional sins committed behind the wheel, but distracted driving is now another leading factor in fatal and serious injury crashes.

According to the U.S. Department of Transportation, a driving distraction is a “specific type of inattention that occurs when drivers divert their attention from the driving task to focus on some other activity instead.” These distractions are either visual, manual, or cognitive. Visual distractions draw drivers’ eyes off the road. In a manual distraction, the driver’s hands are removed from the steering wheel. A cognitive distraction causes drivers to take their minds off the task of driving.

NO END OF DISTRACTIONS

Cell phones are by no means the only distractions. Infotainment systems, smoking, eating

and drinking, personal grooming, climate and seat controls, GPS devices, and passengers young and old can all divert drivers’ attention.

Reports of drivers watching movies or reading books in traffic are not uncommon—and those are just a few of the distractions inside the vehicle. The exterior environment presents its own diversions, including collision sites and ever-changing scenery.

We’ve all driven while distracted, but cell phones are allowing this behavior to be taken to an extreme. The NSC estimates a minimum of 27 percent of crashes involve drivers talking or texting on cell phones, up from 21 percent in 2010. At any time during daylight in 2013, nine percent of drivers were talking on cell phones.

That’s roughly 660,000 vehicle operators across America each elevating the risk of crashes four-fold. As it is, more than 1.5 million crashes per year—and approximately 21 percent of road fatalities—are likely attributable to drivers either texting or talking on their cell phones.

For public entity risk managers, the burden of these statistics is compounded by yet another: motor vehicle crashes are the number-one cause of work-related death. Risk managers oversee diverse driving fleets in which municipal employees may well be more likely to drive while

APRIL 2017 | PUBLIC RISK

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KILL THE DISTRACTIONS, SAVE YOUR EMPLOYEES

distracted, first because they are often working while behind the wheel of service vehicles, and second due to the sheer number of distractions they face. Take the case of a police officer whose patrol car features an on-board laptop, two-way radio and light and siren controls. Then layer in up to two cell phones: one for work and one for personal use.

THE MYTH OF MULTITASKING

With so many tools at our disposal, it’s easy to understand the pressure and obligation to use them on the job. In a society continuously driven to achieve greater productivity—to increase its ability to do more in a given amount of time—we have bought in completely to the idea of multitasking. However, science tells us multitasking is a myth and attempting to do it impairs performance. When drivers talk on their cell phones, they are actually doing only one or the other activity at any given time.

The brain switches back and forth continually between these tasks. One is always primary, one is secondary. Not only does the switching further impair the performance of both tasks, it also takes time—a few tenths of a second per switch, a momentary attention blindness that can mean the difference between stopping in time and plowing into an intersection.

Cell phones’ impairment of reaction time is well documented. Drivers using cell phones in one study were found to have slower reaction times than those with a 0.08 blood DISTRACTIONS alcohol concentration.

NO

LOOKING BUT NOT SEEING

KEEP YOUR EYES

Our vehicle windshields afford us a view, but our brains are at a reduced capacity to process what our eyes take in. We miss up to 50 percent of what is going on in the driving environment when distracted by something as simple as

ON THE ROAD

having a phone conversation. Key visual cues may go unnoticed: traffic signals, stopped school busses, cyclists and pedestrians.

And because we are unaware of the information that is lost, we may also be unaware of our limitations. An AAA survey found that 83 percent of respondents believed using cell phones while driving posed either a serious or extremely serious problem. Yet more than half of these same respondents indicated that they drove while talking on cell phones within the previous 30 days—some often.

The implication for risk managers and their municipalities is a heightened threat to worker and public safety, as well as liability. The path to prevention involves four steps—policies, education, technology and enforcement—that should be part of every municipal vehicle safety program and loss control initiative.  Start with comprehensive policies that assess the potential for distracted driving in your organization.

Who are the employees that work behind the wheel? What vehicles do they operate? What tasks could distract them? What hazards do they face?

Make sure your policy encourages all employees to:

DON’T TEXT

AND DRIVE • Openly pledge to avoid distracted

driving behaviors.

• Turn off unnecessary electronic devices MULTITASKING and place them out of reach before starting to drive. (We strongly advise clients to impose an outright ban on use of cell phones, tablets and programming GPS devices while driving.)

STOP

• Pull off the road safely and stop the vehicle for any task that could distract from driving.

• As passengers, refrain from activity that would distract the driver and speak up when witnessing distracted driving behavior.  Communicate through training that helps employees clearly understand the risks and implications of distracted driving as well as the reasoning behind your policies.

Build distracted driving components into all driving training programs, and be sure to provide refresher training every two to three years.  Whenever possible, turn to technology for help reducing risky behind-thewheel behaviors.

For example, install software that disengages mobile data terminals in police vehicles unless they are stopped. Blocking devices can be installed on cell phones to terminate calls and text messaging in moving vehicles.

Some GPS systems are now calibrated to block adjustments if the vehicle is in motion.

And while hands-free phone systems remain legal in some North American jurisdictions, don’t make the mistake of considering them a safe alternative. Hands-free cell phones offer greater convenience but, according to researchers, they deliver no safety benefit compared to hand-held devices.  Finally, ensure your policies and training are supported by effective enforcement.

Disciplinary measures must be in place to help employees understand the consequences of distracted driving: for themselves, the organization, and members of the public they serve.

EXPERT SUPPORT

Cell phones’ impairment of reaction time is well documented. Drivers using cell phones in one study were found to have slower reaction times than those with a 0.08 blood alcohol concentration.

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PUBLIC RISK | APRIL 2017

The National Safety Council offers a free information kit to help employers develop a policy and reduce crash risk from cell phone distracted driving (safety.nsc.org/cellphonekit). The kit includes a range of materials including a sample policy, communications to build management support, posters and newsletter articles.

Tim McCarty is associate vice president of Risk Control for Trident Public Risk Solutions.

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PUBLIC RISK | APRIL 2017

CATASTROPHIC CLAIMS START to FINISH

W

BY RACHEL PAUL, J.D. M.S.C.C

hile your company may only have one catastrophic claim in 20 years, that

one claim is likely to be 20 percent to 30 percent of your entity’s total claim costs. While shock and fear are the

initial reaction to a catastrophic workplace injury, immediate

intervention is the key to achieving the most positive outcome.

An initial investment of time and resources has a great impact

on attaining the best results for both employee and employer.

WHAT IS A CATASTROPHIC INJURY?

What qualifies as a catastrophic injury? Brain or brainstem injury (frequently referred to as traumatic brain injury [TBI]), paraplegia, quadriplegia, amputation, and damage to internal organs are the most commonly defined catastrophic injuries. Catastrophic claims demand a different level of focus and require claim and medical expertise. Recognizing that a claim is catastrophic and having knowledge that timely specialized intervention is required are the building blocks to successfully manage these injuries.

IMMEDIATE REPORTING

Early and immediate reporting is essential to ensure proper medical interventions. Interventions in the first 24 hours after injury make the difference in long-term recovery. An experienced team of doctors treating multiple level spinal injuries is more likely to help the patient regain mobility than the patient treated in an emergency room of a regional hospital. Medical expertise is required to assess and evaluate the most appropriate medical interventions as well as potential medical needs, such as specialized rehabilitation centers. Early medical intervention leads to significantly better outcomes for the injured worker.

APRIL 2017 | PUBLIC RISK

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CATASTROPHIC CL AIMS: START TO FINISH

EARLY INTERVENTION MEANS IMPROVED RECOVERY

Early intervention and assessment by nurses and doctors with catastrophic injury expertise allows all parties to address the spectrum of medical complications. The first priority is identifying the best treatment for the worker. A nurse case manager can meet the family at the hospital and assess the immediate needs as well as anticipate long-term resources. A worker with a TBI needs to be treated by physicians who specialize in brain injuries and are familiar with treatment options. Sometimes specialized care at a Center of Excellence is at a facility far from the worker’s home. Well-meaning and concerned families want the worker close to home and must be convinced that traveling further is in the best interest of their loved one.

Arranging for a family member to accompany the worker to a Center of Excellence provides this level of comfort for the family and the injured worker. After all, the injury impacts the whole family.

Frequently, others in the same industry receive care from the same Center of Excellence.

For example, in 2016, three police officers in Missouri from different municipalities were treated at a specialized care center in Denver over the course of the year. Publicity about the location made the transition easier for the second and third officer to receive treatment.

The opportunity to meet others in a similar situation is a great selling point for this type of care. Having a medical professional explain that the time spent in the Center of Excellence leads to improvement and a quicker return home assists with this transition. As later discussed, the worker’s family receives training at the Center of Excellence so they can return home and provide care.

SPECIALIZED VENDORS

The best advice often comes from someone with personal experience. There are organizations where people with catastrophic injuries advise those that are newly injured about home

As an adjuster or risk manager, you cannot make the injury go away. However, you can let the worker know that you and the employer are genuinely sympathetic to their “new normal.” Often expressing this to the worker and their family or thanking the family for all their assistance goes a long way towards good will in later claim resolution.

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PUBLIC RISK | APRIL 2017

modification and transportation needs. Receiving advice from an individual who has personal understanding and experience can encourage an injured employee to regain independence.

Additionally, occupational and physical therapists advising on modifications to a vehicle or a work area help preserve independence for the employee.

A worker with an amputation who is evaluated by an experienced prosthetist and fitted with an appropriate prosthetic is more likely to return to employment. Particularly in the prosthetic field, there are innovations yearly. It is important, however, to find the equipment that meets the individual’s needs. A worker who develops a positive relationship with the prosthetic provider will have their device maintained and cared for, leading to a longer life span for the equipment.

COMMUNICATION

As an adjuster or risk manager, you cannot make the injury go away. However, you can let the worker know that you and the employer are genuinely sympathetic to their “new normal.”

Often expressing this to the worker and their family or thanking the family for all their assistance goes a long way towards good will in later claim resolution.

CENTERS OF EXCELLENCE

A medical facility which has specific expertise in the type of injury will provide a comprehensive evaluation. A multidisciplinary team will complete numerous assessments and clearly define the extent of the injury, the diagnosis, the level of family support system, comorbidities (preexisting medical conditions), and the home environment. These assessments will allow formulation of a customized recovery plan for the injured employee, while engaging the family.

Medical expertise begins with specialized nurse case management and continues through physicians with expertise in the type of injury— whether spinal cord, TBI, or amputation.

Establishing rapport with the patient and family ensures that best-in-class care and good will translate to better outcomes throughout the life of the claim. When time for mediation, files that have been handled with this level of care and professionalism tend to have more successful results. Occasionally, we even see a hug from the workers family to the defense attorney!

ATTENDANT CARE

At a specialized rehabilitation facility, the injured worker’s family may be trained in providing care to the worker. This invaluable training helps the family understand the nature of the injury and methods to keep the worker comfortable. Family care is frequently the best option both personally and financially.

Having family provide frequent care allows the worker to return home rather than go to a nursing facility.

THOROUGH INVESTIGATION

While workers’ compensation benefits are intended to assist the injured worker, frequently catastrophic injuries involve third parties, such as an equipment manufacturer or a vehicle driver. A detailed investigation of the injury should begin immediately to identify all parties involved. This includes instruction to preserve the area where the injury occurred.

Machinery must be inspected and preserved.

An outside investigation firm may perform a thorough evaluation of the site and any vehicles or equipment involved to ensure proper evidence preservation.

SETTLEMENT

A frequent comment when discussing catastrophic injury is that these cases are too expensive and they never settle or close.

However, a properly managed catastrophic injury can lead to settlement with positive results for all parties. When the best care has been provided and the best possible medical outcome is achieved, this results in an advantageous position for closure and gives the worker the ability to move forward.

There will be factors to consider that are not present in other types of claims, such as managed Medicare accounts, Medicare eligibility, structured accounts for both Medicare and non-Medicare care needs, and different types of attendant care.

Frequently, claim handlers have a fear of settlement, as these cases tend to involve large medical set-aside accounts. However structured and administered, these set-asides are manageable. Typically the family wants to be in control of their future, and settlement gives them that freedom. Managed medical accounts can be

used to pay family members for attendant care for the injured party.

Medicare Set-Aside accounts significantly affect settlement of catastrophic injuries. By the time the worker is stable enough to consider settlement, he or she may be a Medicare beneficiary or may have already applied for Medicare and are waiting for a determination of their status. Expensive prosthetics, durable medical equipment, and continued physician care will be included. Sometimes just thinking about how complex these accounts are is a deterrent to settlement. However, having the Medicare Set-Aside prepared by an experienced set-aside company reduces the fear and helps develop a set-aside that is approved by the Centers for Medicare Services.

Medicare Set-Asides can be created as a structured account to protect both worker

and employer. An administrator who takes care of Medicare reporting requirements can ensure that medical billing is appropriate.

When the structured account is professionally managed, there is peace of mind for all parties. The administration handles CMS reporting and there is often a discount card included for medical supplies, making the account last longer.

Medical expenses are uniformly the driving cost for claims; this can be magnified for catastrophic claims. Early intervention and tailored medical solutions lead to better outcomes for all involved, ultimately resulting in the ability to resolve catastrophic cases.

Rachel Paul is the senior attorney for Midwest Employers Casualty Company, a W. R. Berkley Company.

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APRIL 2017 | PUBLIC RISK

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AN

EMPLOYEE RECOGNITION PROGRAM THAT FOCUSES ON THE POSITIVE

BY DAN HURLEY, CSP, ARM-P, MS, AND JONATHAN P. WRIGHT

APRIL 2017 | PUBLIC RISK

15

AN EMPLOYEE RECOGNITION PROGRAM THAT FOCUSES ON THE POSITIVE

O

ne of the great challenges many of us have is finding a safety culture program that

not only promotes safety for employees but also provides positive recognition. One potential pitfall would be a system that provides rewards based on a lottery due to

a limited budget, and another is a system that bases rewards on accident frequency, which could result in under-reporting, which is also not appreciated by OSHA1. An

example of a better approach is a new program recently started by the City of Chesapeake’s Public

Utilities Department, which has initiated a hazard elimination program that not only includes employee participation but also effectively provides personal recognition.

Jonathan P. Wright, public utilities safety inspector, explains, “Our goal with the new program is to engage employees and develop a top notch safety culture. Therefore we added a couple of awards to recognize employees going above and beyond their assigned safety responsibilities, and make everyone in the department, including our temporary employees and administrative staff, eligible to participate.“

assisted or by a co-worker who observed the act. The action is documented and a form is submitted for consideration for recognition.

The program has very similar aspects to Scott Geller’s Actively Caring for People program that promotes interpersonal work relationships and daily interactions3.

Jonathan’s department has created four levels of recognition based on OSHA’s VPP Program suggestions, journal articles, and employee experiences at past organizations. The four levels include the following:

As Jonathan explains, “Identifying and removing hazards is one of the most important things we can do to keep our fellow employees and ourselves safe.” For this award, an employee may bring attention to either a process or physical hazard that can be eliminated by an effective process change that may include engineering, ergonomics, equipment upgrades etc. Particularly where work practices become routine over a period of time, obvious hazards can be innocuously ignored. An example of a hazard mitigation may be noticing that chemical bags are positioned at a low level yet have to be lifted to shoulder level to reach a hopper opening.

The suggestion may be as simple as having a platform raised for the chemical bags making the load closer to waist level and having a broad step platform installed so that the bag no longer has to be lifted to shoulder level. A mechanical design change may also reduce the hopper height. In this case, the employee would document the suggested mitigation for

CAUGHT BEING SAFE AWARD

As Jonathan explains, this award “was developed to recognize those employees who were seen going above and beyond their regular duties to assist in helping others do a task more safely.” This award is for the employee who intercedes in what could be an unsafe act by a co-worker to assist, redirect or educate the employee in a constructive manner2 . The act could be as simple as providing an employee with a more appropriate portable ladder with guidance on use when observing an employee standing on one too short with the individual standing above the center of gravity, or a more complex situation, such as assisting in a de-energizing procedure. An employee can be recognized by the co-worker who was

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HAZARD RECOGNITION AND MITIGATION AWARD

A recognition program does not have to be expensive or complex. Sincere and timely recognition can have significant impact, particularly from one’s peers.

consideration for recognition. This program is also very effective particularly for new construction when architects frequently forget how equipment will be maintained and fail to ask employees for input4 . How often have you seen buildings with grand lobbies with abandoned light fixtures 30 feet above the floor?

NEAR MISS REPORTING

Near miss reporting is critical to any safety program. Many times an investigation into a serious incident that results in serious injury or property loss reveals that a near miss had occurred before, involving the same process in question. While working with a previous employer, I observed a crushed eye wash station and was told by sheepish looking mechanics who said simply ‘a truck struck it’. Returning to my office, I received a crash report from a department that reported that their ambulance fell off a lift, which of course inspired a return trip to the garage. As Jonathan explains the near miss reporting process, “Employees who have a near miss incident (or observe one) that does not result in injury or property damage will fill out the Near Miss Form and turn it in within 24 hours.” The emphasis on time is to put immediate focus on the issue that created the near miss with timely corrections.

Both the Caught Being Safe and Hazard Recognition and Mitigation award submis-

sions are forwarded to the department safety committee that meets monthly and those that qualify for recognition are provided a certificate, with a description of their act or suggestion at a meeting in front of their peers.

The recognition in front of the employee’s peers not only maximizes the recognition publicly but also highlights the safety action or process change for all to benefit and discuss.

In addition to the division recognition, each time an employee receives a recognized Caught Working Safe award, a Hazard Recognition Mitigation award or has a valid Near Miss Report, they would be eligible for a drawing for a number of prizes conducted at the department’s annual safety picnic. Yes a lottery, but a lottery for individuals who were already recognized, thus this lottery serves as a bonus with an element of fun at the safety picnic.

SAFETY CHAMPION OF THE YEAR AWARD

In addition to the recognition awards above, the department also selects a Safety Champion of the Year. To qualify Jonathan states “recognition is key especially in the younger workforce.

So to maximize that aspect we developed the Safety Champion of the Year Award to recognize one employee who had received either the “Caught You Being Safe” or the “Hazard Recognition and Mitigation Award,” and has

brought significant value to our department and the City of Chesapeake through their commitment to safety and the safety program.

This individual would be recognized in front of the entire department at the Safety Awards Picnic which is typically attended by the upper levels of city leadership.”

In the article “The Truth About Safety Incentives,” Carl & Debbie Potter4 name a number of aspects that create a positive incentive program and three of those stand out: 1) Making Safety a Core Value, 2) Commit management to worker safety and 3) Involve employees in the safety process. Chesapeake’s Public Utilities program establishes safety as a core value by focusing on both action by employees to look out for each other and encourage constructive intervention. The employees drive the program by their acts to recognize employees, suggesting procedures that create a safer work process reducing potential for injury or illness. Lastly and most importantly, the program has strong management support from the director and senior staff who also participate fully with active participation on the safety committee and provide a budget for the program.

A recognition program does not have to be expensive or complex. Sincere and timely recognition can have significant impact, particularly from one’s peers. I recall an IT department recognizing an employee at

APRIL 2017 | PUBLIC RISK

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AN EMPLOYEE RECOGNITION PROGRAM THAT FOCUSES ON THE POSITIVE

each monthly department meeting who was reported by a peer for assisting a colleague with a complicated process. The IT department’s recognition simply included describing the event and presenting the employee a Snickers bar with a certificate followed by a round of applause. As Jonathan sums up the City of Chesapeake Public Utilities’ safety recognition program, “It’s a pretty simple program with no complex algorithms or record keeping procedures, and there is the potential to engage all levels of the organization. Not to mention it’s flexible to the size and budget of the organization. The more employees and larger budgets you have the better and

more gifts you buy. However for the small municipality with even smaller budgets and staff, it is still flexible enough to work and engage employees.”

FOOTNOTES 1 Further Improvements to VPP, August 14, 2014, https://www.osha.gov/dcsp/vpp/ policy_memo5.html 2 Working Safe, Scott Geller, 2001, CRC Press, page 91 3 Actively Caring for People, Scott Geller, 2014, Make a Difference, LLC, page 46

4 Prevention Through Design: Guidelines for Addressing Occupational Hazards and Risks in Design and redesign Process, ANSI/ ASSEZ590.3-2011, page 14 5 The Truth About Safety Incentives, Carl and Deb Potter, ISE (ICT Solutions & Education), http://www.ospmag.com/issue/ article/092008-Truth

Jonathan P. Wright is the public utilities safety inspector for the City of Chesapeake, Va. Dan Hurley, CSP, ARM-P, MS, is the risk manager for the City of Chesapeake Va.

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