Establishing Company Culture in the Remote Workplace

Establishing Company Culture in the Remote Workplace

Establishing Company Culture in the Remote Workplace

Many organizations take pride in their company culture—often, it can be a core competency and a competitive advantage. As employers expand remote work opportunities to more employees than ever before, organizations may want to consider how their culture can stay intact through an increased virtual workspace. What you need to know about company culture in the remote workplace.

What Is Company Culture?

Company culture is the personality and environment of an organization. Defined by more than just a mission statement or organizational values, company culture encompasses the unwritten norms of how individuals act with one another. While poor company cultures can be detrimental, a strong company culture and positive employee morale can positively impact recruitment efforts, retention and the bottom line of an organization.

The Society for Human Resource Management breaks down company culture into three broad categories:

  • Social—How individuals act, and how authority and influence exist between different roles and teams
  • Material—How people in a group make or achieve something, and the ways people work with and collaborate with one another
  • Ideological—How values, beliefs and ideals establish how individuals exist and interact

Company culture has long been associated with the way interactions take place. In the absence of face-to-face conversations, that same company culture translates through interactions taking place via communication channels such as email, phone, video, instant messaging, employee intranets and more. As utilization of remote work expands, employers may want to consider how their culture is translating into the virtual workplace.

Culture in the Remote Workplace

A Strong Company Culture in the Remote Workplace

Company culture should align with the mission statement and values of an organization—this will vary from workplace to workplace. According to Glassdoor, positive company cultures have common themes that matter in today’s economy. These include:

  • Agility
  • Collaboration
  • Customer focus
  • Diversity
  • Execution
  • Innovation
  • Integrity
  • Performance
  • Respect

Many organizations take pride in their company culture, and expanded remote work doesn’t mean that culture can’t exist in the remote workspace—but employers will want to consider planning ahead.

Culture in the Remote Workplace

Company Culture in the Remote Workplace

Effectively expanding company culture into the remote workplace is about more than just creating policies and adjusting business practices—the actions and behaviors of employees will continue to define a culture, just as in any work location.

Within the remote workplace, there are ways that employers can help expand positive attributes of a culture to those engaging in remote work. Options for employers to consider include encouraging behaviors, implementing practices and rethinking employee engagement, while keeping the following tips in mind:

  • Focus on the why—An organization’s mission statement, purpose and objectives can be a source of meaning for many employees. Ensure that these goals remain at the forefront of communications.
  • Prioritize collaboration—As in any workplace, employees are engaged when they are collaborating and feel as if they are part of a greater cause. While employees will be spending a significant amount of time alone, be intentional about facilitating collaboration with projects, goals and objectives.
  • Rethink communications—Company culture lives through the actions of employees and how individuals communicate with each other. While word-of-mouth can no longer be the primary medium for engagement, be strategic about how different communication channels are used, such as employee intranets, social networking tools and video.
  • Create opportunities for social engagement—When employees are able to engage with each other virtually, it can help build camaraderie. Many effective video platforms exist, and non-work conversations can help build team chemistry and facilitate an environment for positive interactions to take place in a remote environment.

Encouraging Behaviors

While employers can implement policies and document expectations, it will be the choice of employees to buy in. Encouraging positive behaviors will take more than just policies or guidelines—actions can have an immense impact. Leaders often have significant influence—and when management is living out expected behaviors each and every day, employees will feel comfortable reciprocating.

Facilitating a Strong Culture in the Remote Workplace

While company culture will be defined by the way in which individuals interact, organizations can take steps to help facilitate an environment where a positive company culture can be established in the remote workplace.

Every organization is different and has a unique culture. Create practices and encourage behaviors that best work for your organization and are accommodating to remote and non-remote employees alike. Contact GDI Insurance Agency, Inc. for additional resources regarding best practices for utilizing the remote workplace. 

California’s Leader in Insurance and Risk Management

As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive business insurance quote!

Portal Opens for Second Round of PPP Loans

Portal Opens for Second Round of PPP Loans

Portal Opens for Second Round of PPP Loans

The U.S. Department of Treasury and the U.S. Small Business Administration (SBA) have announced that beginning Monday, Jan. 11, applications will be accepted for the second round of PPP loans in the SBA’s Payment Protection Program (PPP). This second round includes $284 billion in funding that was allocated for the PPP in the stimulus bill passed on Dec. 27, 2020. This round of funding will run through March 31, 2021.

The second round of PPP loans provides eligibility to new borrowers and certain existing PPP borrowers. As eligibility opens up, small businesses and lenders should prepare to adhere to the new requirements detailed below. 

Second Round of PPP Loans

Second Round of PPP Loans Application Schedule

Monday, Jan. 11, marks the opening of the portal. Initially, the portal will only be open to borrowers applying for their first PPP loan (known as “First Draw PPP Loans”) through “community financial institutions.” These “community financial institutions” are lenders that serve minority, underserved, veteran and women-owned businesses.

On Wednesday, Jan. 13, borrowers applying for a second PPP Loan (known as “Second Draw PPP Loans”) also become eligible. Again, the SBA will only accept applications from lenders designated a “community financial institution.”

The PPP will open to all participating lenders “shortly thereafter,” according to the announcement. The SBA has yet to announce a specific date.

Second Round of PPP Loans

Information About the Second Round of PPP Loans

For the most part, the rules for this round are very similar to the initial round of PPP loans. However, there are updates to the first round of funding. According to the Treasury, key PPP updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between eight and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs and worker protection expenditures;
  • The program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives and direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

For more specifics about the second round of PPP funding, the SBA has provided additional details.

What’s Next?

Borrowers should review the criteria for this second round of PPP loans. Borrowers considering applying should prepare and have on hand all relevant documentation. Lastly, borrowers should direct any questions regarding PPP loans to their lender.

We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary. For more information about the PPP, contact GDI Insurance Agency, Inc.

California’s Leader in Insurance and Risk Management

As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

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5 Ways to Manage Poor Workplace Performance Among Remote Workers

5 Ways to Manage Poor Workplace Performance Among Remote Workers

Successful business is all about accountability. Each worker’s individual contributions build on one another and culminate into something greater, to the benefit of the company and its customers. Conversely, when some individuals struggle with their performance, the entire organization can suffer. These poor workplace performance among remote workers tips will help you recognize and deal with performance issues.

Unfortunately, addressing poor performance isn’t always easy. This is especially true amid the COVID-19 pandemic, as remote working often makes accountability more complicated. This article offers five tips to help employers manage poor performance in the workplace, even while everyone is working from home.

1. Address the Poor Workplace Performance Problem Quickly

The longer poor workplace performance goes unchecked, the more damage it causes. Strategies such as incidental counseling, frequent check-ins and 360-degree reviews can all be useful for identifying and curtailing poor performance early on. Even if the majority of the workforce is working remotely, it’s critical to budget ways to check in and monitor performance in an ongoing manner—particularly during the COVID-19 pandemic, when the margin between success and failure is razor thin.

2. Have Difficult Conversations

Difficult conversations aren’t easy for many people, managers included. In fact, nearly 20% of top executives struggle to hold others accountable, according to the Harvard Business Review. This is a problem, since issues left unaddressed will almost always worsen over time.

A poorly performing employee isn’t likely to improve if left to their own devices—employers need to have tough conversations. This doesn’t entail laying into the employee, however. Rather, employers need to thoughtfully explain where they’ve noticed performance lapses and work candidly with the employee toward improvement.

These conversations should be face-to-face (e.g., a video call) and cover the following:

  • Explicit examples of where the employee’s performance is waning
  • A clearly defined standard that the employee must meet to no longer be considered a poor performer
  • Probing questions to identify problem areas, such as:
  • What’s different now from when your performance was better?
    • What’s not working as well for you, be it a workflow issue, new work arrangement, co-worker relationship or something else?
    • For what and to whom are you accountable?
  • An agreed-upon goal and timeline for assessing improvement

The end goal of these conversations should be to correct the problem, not necessarily discipline the employee. For instance, an employer may discover through this process that a workflow is the main hinderance, not an individual.

In other words, migrating to a work-from-home arrangement can create unforeseen problems, which can resemble individual shortcomings. By having tough conversations, employers can figure out the truth and help work toward a solution.

California's Leader in Insurance and Risk Management As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an "insurance cost reduction" quoting plan, that provides you with the best coverage at the best rate! We are headquartered in Turlock, CA, with locations across the heart of California's Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client's expectations in every interaction to make sure that our client's know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive insurance quote!

3. Follow Up on Progress

Establishing performance improvement goals is only worthwhile if employees are held to them. A clear goal with measurable standards should’ve been established during the initial performance conversation with the employee. Employers should follow up about everything that was discussed during that meeting.

The length of time between the initial meeting and follow-up will vary by situation. For instance, if the main problem turned out to be workflow-related—rather than solely about performance—it may take longer to establish a fix, since that solution may necessitate input from many stakeholders. In other cases, such as when an employee is distracted by personal responsibilities, an employer may have quicker turnaround expectations and follow up sooner.

4. Keep a Detailed Record

Employers should document all performance-related issues from the onset. That means as soon as a manager notices dwindling performance, a paper trail should begin. In a remote setting, this would entail collecting emails, chat transcripts and other logs. Doing so will help guide performance improvement by cataloging specific examples for the employee to work on and identifying different time periods to compare performance against.

The record should also include meeting notes to document anything that’s discussed during performance meetings, including specific action steps and goals. Employers may consider recording video calls, with employee consent, to keep a more accurate record. Not only will this documentation help employers track performance improvement, it may also be necessary for justifying an employee’s termination if they do not improve.

5. Seek Additional Manager Training

Performance issues can often be corrected through swift action. But, if managers are unable to recognize or address poor performance with their direct reports, problems will only continue. Managers may have different blind spots in this regard. Some may not track performance closely enough, while others may speculate as to the cause of the poor performance without actually addressing it.

That’s why manager training is so important. Managers should be able to spot when performance is declining and have the resolve to address those situations with employees. This is the only method for getting to the root cause and improving the circumstances. It’s not prudent to expect employees to bring up their limited performance on their own.

Speak with GDI Insurance Agency, Inc. for more workplace guidance, including additional best practices for managers.

California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive business insurance quote!

California Sexual Harassment Prevention Training FAQ

California Sexual Harassment Prevention Training FAQ

California Sexual Harassment Prevention Training FAQ

SB 1343 requires that all employers of 5 or more employees provide 1 hour of California sexual harassment prevention training and abusive conduct prevention training to non-managerial employees and 2 hours of sexual harassment and abusive conduct prevention training to managerial employees once every two years. Existing law requires the training to include harassment based on gender identity, gender expression, and sexual orientation and to include practical examples of such harassment and to be provided by trainers or educators with knowledge and expertise in those areas. The bill also requires the Department to produce and post both training courses to its website, which employers may utilize instead of hiring a trainer.

An employer is required to train its California-based employees so long as it employs 5 or more employees anywhere, even if they do not work at the same location and even if not all of them work or reside in California.

Under the DFEH’s regulations, the definition of “employee” for training purposes includes full-time, part-time, and temporary employees, unpaid interns, unpaid volunteers, and persons providing services pursuant to a contract (independent contractors) Click the below toolkit for additional tools, including a sample sexual harassment and abusive
conduct prevention training:

NEW UPDATE: By what date must employees be trained?

All employees must now receive training by January 1, 20211. Employers of 50 or more employees have an existing and ongoing obligation to train new supervisory employees within six months of assuming their supervisory position. Beginning January 1, 2021, new supervisory employees in workplaces of 5 or more employees must be trained within six months of assuming their supervisory position, and new nonsupervisory employees must be trained within six months of hire. Employees must be retrained once every two years.

NEW UPDATE: What if the employees are seasonal, temporary or otherwise work for less than six months?

Employers are required to provide training within 30 calendar days after the hire date or within 100 hours worked, whichever occurs first, beginning January 1, 20212. Employers are not required to train employees who are employed for fewer than 30 calendar days and work for fewer than 100 hours.

  • In the case of a temporary employee employed by a temporary services employer, as defined in Section 201.3 of the Labor Code, to perform services for clients, the training shall be provided by the temporary services employer, not the client


NEW UPDATE: When will the Department of Fair Employment and Housing’s online training
courses be available?

SB 1343 requires that DFEH make online training courses available on the prevention of sexual harassment and abusive conduct in the workplace. DFEH expects to have all trainings available by July 30, 2020. In the interim period, DFEH is offering a SEXUAL HARASSMENT AND ABUSIVE CONDUCT PREVENTION TOOLKIT, including a sample sexual harassment and
abusive conduct prevention training. Employers may use the training in conjunction with an eligible trainer to provide sexual harassment and abusive conduct prevention training.

  • SB 778 signed by Governor Newsom on 8/30/19 amended existing law to change deadline of harassment training until 1/1/2021.
  • 2SB 530 signed by Governor Newsom on 10/10/19 amended existing law to change deadline to 1/1/2021 for seasonal and
    temporary worker harassment training compliance.

SEXUAL HARASSMENT PREVENTION TRAINING FAQ

Do employers need to train independent contractors, volunteers, and unpaid interns?

No, it is not required that employers train independent contractors, volunteers, and unpaid interns. However, in determining whether an employer meets the threshold of having 5 employees and being subject to the harassment prevention training requirement, independent contractors, volunteers, and unpaid interns must be counted. For example, if an employer has 2 full time employees and 6 unpaid interns, the employer would meet the training threshold requirement and would need to ensure the two full time employees receive training only.

What if a supervisor or non-supervisory employee has received the training in compliance with 12950.1 within the prior two years either from a current, a prior or alternate, or a joint employer? Do they have to retake the training again?


No. Supervisors do not need to retake the training. But their new, alternate or joint employer must give them the employer’s anti-harassment policy, require them to read it, and require them to acknowledge receipt of it. This must happen within six months of the supervisor assuming their new supervisory position (or within six months of the creation of a new business or the expansion of a business that was previously not required to provide training). However, the current employer is responsible for ensuring that all supervisors have fulfilled the training requirement contained in 12950.1, which may require verifying compliance from the prior, alternate, or joint employer.

For non-supervisory employees who received harassment prevention training in compliance with 12950.1 from another employer within the prior two years, they must be required to read and to acknowledge receipt of the current employer’s anti-harassment policy. Again, the current employer will be responsible for ensuring that all non-supervisory staff have fulfilled
the training requirement contained in 12950.1, which may require verifying compliance from the prior, alternate, or joint employer.

Does DFEH have a list of approved outside training providers, or can DFEH recommend or approve an outside training provider for my company to use?

DFEH does not approve training providers. DFEH cannot offer recommendations or approvals for other training providers.

I believe I may be eligible to become a trainer; how can I verify this?

There is currently no certification requirement for qualified trainers, and DFEH is unable to provide guidance as to whether one meets the qualifications of a trainer. If you believe you meet the requirements found in 2 CCR 11024, you may choose to offer your services as a trainer.

Does a trainer who is also an employee need to receive California sexual harassment prevention training in order for their employer to be compliant?

No. An individual who is a qualified training provider according to the regulations (and who does provide the training) does not need to participate in a separate sexual harassment prevention training for their employer to be in compliance with the training requirements.

What documentation is required for those who have completed the training?

The law requires employers to keep documentation of the training it has provided its employees for a minimum of two years, including but not limited to the names of the supervisory employees trained, the date of training, the sign-in sheet, a copy of all certificates of attendance or completion issued, the type of training, a copy of all written or recorded materials that comprise the training, and the name of the training provider. Examples of tracking individual compliance include a certificate and/or a sign-in sheet that includes a verification that trainees completed the training. Documentation of the training should not be sent to DFEH but should be kept on the employer’s premises.

If I have employees located outside of California, are they required to be trained?

No. While employees located inside and outside of California are counted in determining whether employers are covered under the Act, employees located outside of California are not themselves required to be trained.

What is meant by “effective interactive training”?

Effective interactive training can include any of the following:

  • Classroom training that is in-person, trainer-instruction, whose content is created by a trainer
    and provided to a supervisor by a trainer, in a setting removed from the supervisor’s daily
    duties.
  • E-learning that is individualized, interactive, computer-based training created by a trainer and
    an instructional designer that includes a link or directions on how to contact a trainer who
    shall be available to answer questions and to provide guidance within two business days
    after the question is asked.
    • The trainer shall maintain all written questions received, and all written responses or guidance provided, for a period of two years after the date of the response.
  • Webinar training that’s an internet-based seminar whose content is created and taught by a trainer and transmitted over the internet or intranet in realtime.
  • Other “effective interactive training” and education includes the use of audio, video or computer technology in conjunction with classroom, webinar and/or e-learning training.

If an employer utilizes a webinar as their effective interactive California Sexual Harassment Prevention training, can the training be watched in a large group at the same time?

Yes, but it is up to the employer to comply with the documentation procedures, including the following:

• An employer utilizing a webinar for its supervisors or non-supervisory employees must document and demonstrate that each supervisor and non-supervisory employee who was not physically present in the same room as the trainer nonetheless attended the entire training and actively participated with the training’s interactive content, discussion questions, hypothetical scenarios, polls, quizzes or tests, and activities.

• The webinar must provide an opportunity for all employees to ask questions, to have them answered and otherwise to seek guidance and assistance.

• For a period of two years after the date of the webinar, the employer shall maintain a copy of the webinar, all written materials used by the trainer and all written questions submitted during the webinar, and document all written responses or guidance the trainer provided during the webinar.

In addition to the California Sexual Harassment Prevention training (and corresponding process and procedures), is there anything else required?

Yes, every employer must post a poster developed by the Department regarding TRANSGENDER RIGHTS and SEXUAL HARASSMENT in a prominent and accessible location in the workplace.

Does the employer have to pay for sexual harassment and abusive conduct prevention training? Does the employer have to provide paid time for such training?

California law specifies that, “An employer…. shall provide” sexual harassment and abusive conduct prevention training. Gov. Code 12950.1(a)-(b). The Department is authorized to seek a court order that “the employer” has not complied with this requirement. Gov. Code 12950.1(f). This language makes clear that it is the employer’s – not the employee’s – responsibility to provide the required training, including any costs that may be incurred. This language also makes clear that employees may not be required to take such training during their personal time; the training must be “provided” by the employer as part of an individual’s employment.

California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive business insurance quote!

Combating Workplace Safety Complacency

Combating Workplace Safety Complacency

Combating Workplace Safety Complacency

It’s vital for employees to feel comfortable in their job role and capable of performing workplace tasks effectively. However, comfort shouldn’t come at the cost of complacency. Combating workplace safety complacency is a real issue for some businesses.

Being complacent on the job and ignoring safety hazards can carry significant consequences in the workplace—such as near-miss incidents, injuries and even fatalities. After all, just because your workplace is safe, doesn’t mean you don’t have to follow proper precautions. In fact, many safety incidents aren’t caused by unsafe conditions, but rather by careless acts or behaviors.

That’s why it’s crucial for you to play your part in combating complacency, keeping both yourself and others safe at work. Review this guidance to understand what workplace safety complacency is and how to prevent it.

business liability insurance

What Is Workplace Safety Complacency?

Put simply, workplace safety complacency occurs when an employee becomes so experienced or familiar with their job responsibilities that they start to develop an overly relaxed attitude toward tasks. This attitude shift can cause the employee to ignore or become complacent with their job hazards and stop taking proper safety precautions.

Employees can display workplace safety complacency in a variety of ways—including rushing through tasks, skipping important safety steps during a task, multitasking or engaging in distracting activities while performing a task.

Regardless of how confident or comfortable you are with workplace tasks, it’s imperative to avoid complacency. Even the most experienced employees can hurt themselves or others if they fail to uphold adequate safety precautions.

How to Prevent Workplace Safety Complacency

Here’s what you can do to combat safety complacency within the workplace:

  • Take hazards seriously. Remember that no matter your skill level, you’re never immune to workplace hazards. Always pay attention during workplace safety meetings and training sessions to fully understand the risks that accompany your role and comprehend the consequences of engaging in unsafe actions.
  • Follow workplace policies and procedures. Ensure you follow all safety policies and procedures when performing workplace tasks, even if it seems tedious. Don’t rush through tasks, try to multitask or skip certain steps.
  • Conduct safety audits. Consider having a co-worker routinely audit you to see if they identify any safety concerns while you work—this is also known as a behavior-based safety observation (BBSO). Make sure you assist your co-workers by auditing their work through BBSOs as well. By observing others, you may even become more aware of your own habits and identify additional areas for improvement.

To ensure a successful safety culture within our organization, it’s crucial for you to be comfortable addressing complacency issues on the job. If you have any concerns regarding workplace safety complacency, talk to your supervisor.

GDI Insurance Agency, Inc.

California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive insurance quote!

5 Tips for Reducing Workers’ Compensation Costs

5 Tips for Reducing Workers’ Compensation Costs

5 Tips for Reducing Workers’ Compensation Costs

When a company experiences significant increases in workers’ compensation costs, it usually triggers internal activities aimed at reducing insurance costs and spending. The key to spending fewer dollars is more than just stopping a few accidents; it is having a sound safety program designed to continuously improve. This is where a safety program that, at a minimum, is compliant with the Occupational Safety and Health Administration (OSHA) standards can yield significant savings for  by reducing injuries and illnesses, reducing workers’ compensation costs.

Reducing Workers’ Compensation Costs by Building a Solid OSHA Program

There are five elementary steps  can take to have a well-rounded safety program that produces a safe work environment, achieves OSHA compliance, reduces accidents and ultimately reducing workers’ compensation costs.

  1. Develop the various programs required by the OSHA standards.
  2. Integrate those programs into the daily operations.
  3. Investigate all injuries and illnesses.
  4. Provide training to develop safety competence in all employees.
  5. Audit your programs and your work areas on a regular basis to stimulate continuous improvement. 
Reducing Workers' Compensation Costs

Develop Programs Required by OSHA Standards

Aside from being a requirement for general industry, the OSHA standards provide a good pathway to incident reductions. A good number of accidents stem from poorly developed or poorly implemented OSHA programs: failure to keep walking and working surfaces clear may result in slips or trips, not using personal protective equipment may result in excessive lacerations, and poor lifting techniques can result in strains.

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

Integrate Programs into Daily Operations

Policies alone won’t get results; the program must move from paper to practice in order to succeed. Putting a policy into practice requires a strategic plan clearly communicated to key participants, good execution of that plan based on developed competencies and a culture that inspires and rewards people to do their best.

When developing any business initiative, there must be an emphasis on frontline supervisors and helping them succeed. Every good business person knows that any new program—safety, quality or anything else—lives and dies with the frontline supervisor. If the frontline supervisor knows the program and wants to make it happen, the program succeeds; if not, the program is a source of constant struggle and an endless drain on resources and energies. Providing supervisors with knowledge and skills through training is critical to the success of any program. 

A solid OSHA program integrated into the daily operation and led by competent supervisors is just the beginning. Successful safety programs focus on being proactive instead of always reacting to issues. Accident investigations provide an excellent source of information on real or potential issues present in the workplace.

Reducing Workers' Compensation Costs

Investigate All Injuries and Illnesses

Workers’ compensation is designed to recompense employees for injuries or illnesses they suffer in the course of their employment. This should not come as a surprise, but increasing numbers of claims drive up workers’ compensation costs. To reduce those costs, you must simply reduce your accidents, and the ability to reduce accidents is significantly enhanced when those accidents are fully investigated instead of simply being reported.

Accident reports are historical records only citing facts, while accident investigations go deeper to find the root cause and make improvements. Businesses that stop rising workers’ compensation costs have an effective accident investigation process that discovers the root cause of the problem. Unless the root cause is discovered, recommendations for improvement will remain fruitless. Again, training proves beneficial because a supervisor skilled in incident analysis is a better problem solver for all types of production-related issues, not just safety.

All accidents should be investigated to find out what went wrong and why. Some may suggest investigating every accident is a bit over the top and only those that incur significant costs are worthy of scrutiny. But ask yourself this question: If you only investigated serious quality concerns instead of every little deviation, would your quality program still be effective? Companies with solid quality programs investigate and resolve every deviation from quality standards.

If your emphasis is only on those incidents that have to be recorded on the OSHA 300 log, you close your eyes to the biggest accident category: first aid-only incidents. Many companies get upset about recordables or lost time accidents because of the significant costs involved, but they don’t realize that the small costs and high numbers of first aid-only incidents really add up.

Statistics show that for every 100 accidents, 10 will be recordable and one a lost-time incident. If you investigate only recordables or lost time accidents, 89 go unnoticed. Would you consider a quality program that allows an 89% failure rate successful? Reducing serious accidents means you must reduce your overall rate of all accidents – including first aid-only incidents. That only happens when every incident is fully investigated to find the root cause, and remedial actions are identified and integrated into the daily operation.

Training and Auditing for Continuous Improvement

The final steps focus on training and auditing your program for continuous improvement. Training plays a significant role in safety and in 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 improve all aspects of your business and drive down costs. Supervisors must have the knowledge and ability to integrate every safety program into their specific areas of responsibility. Every employee must know what is expected of them when it comes to implementing safe work procedures. Once the programs are developed and implemented, they must be reviewed on a regular basis to make sure they are still relevant and effective.

This might require a significant change in how you manage your safety program, but if your workers’ compensation rates are high, it may be time to make this leap.

Tangible Benefits

  1. Studies indicate there is a return on investment and that companies see direct bottom-line benefits with a properly designed, implemented and integrated safety program.
  2. A competency-based safety program is compliant with OSHA requirements and therefore reduces the threat of OSHA fines.
  3. A competency-based safety program lowers accidents, and fewer accidents lower workers’ compensation costs. When incidents do occur, a competency-based safety program fully evaluates the issue and finds the root cause to prevent reoccurrence and provides a workplace that is free from recognized hazards.
  4. A safer workplace creates better morale and improves employee retention. Auditing keeps your programs fresh and effective and drives continuous improvement.
  5. A competency-based program produces people who are fully engaged in every aspect of their job and are satisfied and fulfilled producing high-quality goods and services.

How Can We Assist You?

At GDI Insurance Agency, Inc., we are committed to helping you establish a strong safety program that minimizes your workers’ compensation exposures. Contact us today at 209-634-2929 to learn more about our OSHA compliance, safety program, and accident investigation tools and resources.

California’s Leader in Insurance and Risk Management

GDI Insurance Agency, Inc.

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive workers’ compensation insurance quote! We can help with reducing workers’ compensation costs!