1 ABC’s Safety Training Evaluation Process: Achieving World-Class Safety Performance Presented by: Mike Bellaman & Chris Williams Associated Builders and.

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ABC’s Safety Training Evaluation Process: Achieving World-Class Safety

PerformancePresented by:Mike Bellaman & Chris Williams

Associated Builders and Contractors, Inc.

Washington, DC

www.abc.org

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YOUR PRESENTERS

Michael BellamanPresident & CEO

Chris WilliamsDirector of Safety

ABC History• Founded in 1950• 22,000 construction industry members• 70 chapters nationwide• ABC’s Vision:

Based on the merit shop philosophy, Associated Builders and Contractors helps Members develop

people, win work and deliver that work Safely, Ethically and Profitably for the betterment of the communities in

which they work.

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STEP History

– Created in 1989 by the ABC National Environment, Health & Safety (EH&S) Committee to help recognize ABC member companies with exceptional safety records.

– Six levels of achievement in the STEP program: Participant, Bronze, Silver, Gold, Platinum & Diamond.

– Provides contractors with a consistent, effective tool to evaluate safety training programs by using 20 standard “Key Components” of safety. Each key component focuses on specific safety and training areas essential to a successful, effective safety training program.

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So what, exactly, is STEP?• Pre-qualification tool for owners/users• Performance evaluator for insurers• Internal company tool for:

– Recognition– Evaluation / Benchmarking– Data-gathering– IMPROVEMENT

STEP provides contractors with the means to determine how they can send EVERY worker home safely EVERY night.

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The Benefits of STEP

– Helps contractors evaluate their safety training programs and identify areas of improvement.

– Helps contractors reduce workers’ compensation costs by building stronger, more effective safety systems & processes.

– Provides recognition for contractors who consistently provide a safe work environment not only to employees, but to customers as well.

– Sets companies apart from their competition.– Saves LIVES and MONEY!

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How STEP works

• OSHA Form 300A data – source of ½ of all STEP application info

• Company information– Man-hours worked– Type of work done– Location of work– NAICS code

• EMR & Incidence Rate• 20 Key Components Self-Evaluation

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STEP vs. BLS Fatality Rates, 2009-2013

2009 2010 2011 2012 20130.0

2.0

4.0

6.0

8.0

10.0

12.0

9.6 9.7 9.5 9.1 9.5

3.9

1.92.6 2.3 2.3

BLSSTEPSTEP PlatinumSTEP Diamond

STEP Application Year(data & BLS comparison is from year prior)

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STEP vs. BLS TRIR, 2009-2013

2009 2010 2011 2012 20130.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0 4.74.3

4.0 3.9 3.8

3.2

2.6 2.52.3 2.3

1.8

1.1 1.1 1.01.2

0.70.34 0.51

BLSSTEPSTEP PlatinumSTEP Diamond

STEP Application Year(data & BLS comparison is from year prior)

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STEP vs. BLS DART, 2009-2013

2009 2010 2011 2012 20130.0

0.5

1.0

1.5

2.0

2.5

3.0

2.5 2.32.1 2.2 2.2

1.71.5 1.3

1.21.11.0

0.6 0.60.4

0.6

0.3 0.2 0.24

BLS/OSHASTEPSTEP PlatinumSTEP Diamond

STEP Application Year(data & BLS comparison is from year prior)

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STEP vs. Industry Average EMR, 2009-2013

2009 2010 2011 2012 2013-0.150

0.050

0.250

0.450

0.650

0.850

1.050 1.000 1.000 1.000 1.0001.030

0.830 0.830 0.840 0.844 0.847

0.765 0.748 0.730

0.5750.645 0.63

Industry Av-erage

STEP

STEP Platinum

STEP Diamond

STEP Application Year(data & BLS comparison is from year prior)

0.735 0.760

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0.050 0.100 0.150 0.200 0.250 0.300 0.350 0.400 0.450 0.500

10,000$ 500$ 1,000$ 1,500$ 2,000$ 2,500$ 3,000$ 3,500$ 4,000$ 4,500$ 5,000$

20,000$ 1,000$ 2,000$ 3,000$ 4,000$ 5,000$ 6,000$ 7,000$ 8,000$ 9,000$ 10,000$

30,000$ 1,500$ 3,000$ 4,500$ 6,000$ 7,500$ 9,000$ 10,500$ 12,000$ 13,500$ 15,000$

40,000$ 2,000$ 4,000$ 6,000$ 8,000$ 10,000$ 12,000$ 14,000$ 16,000$ 18,000$ 20,000$

50,000$ 2,500$ 5,000$ 7,500$ 10,000$ 12,500$ 15,000$ 17,500$ 20,000$ 22,500$ 25,000$

60,000$ 3,000$ 6,000$ 9,000$ 12,000$ 15,000$ 18,000$ 21,000$ 24,000$ 27,000$ 30,000$

80,000$ 4,000$ 8,000$ 12,000$ 16,000$ 20,000$ 24,000$ 28,000$ 32,000$ 36,000$ 40,000$

100,000$ 5,000$ 10,000$ 15,000$ 20,000$ 25,000$ 30,000$ 35,000$ 40,000$ 45,000$ 50,000$

125,000$ 6,250$ 12,500$ 18,750$ 25,000$ 31,250$ 37,500$ 43,750$ 50,000$ 56,250$ 62,500$

150,000$ 7,500$ 15,000$ 22,500$ 30,000$ 37,500$ 45,000$ 52,500$ 60,000$ 67,500$ 75,000$

175,000$ 8,750$ 17,500$ 26,250$ 35,000$ 43,750$ 52,500$ 61,250$ 70,000$ 78,750$ 87,500$

200,000$ 10,000$ 20,000$ 30,000$ 40,000$ 50,000$ 60,000$ 70,000$ 80,000$ 90,000$ 100,000$

250,000$ 12,500$ 25,000$ 37,500$ 50,000$ 62,500$ 75,000$ 87,500$ 100,000$ 112,500$ 125,000$

300,000$ 15,000$ 30,000$ 45,000$ 60,000$ 75,000$ 90,000$ 105,000$ 120,000$ 135,000$ 150,000$

400,000$ 20,000$ 40,000$ 60,000$ 80,000$ 100,000$ 120,000$ 140,000$ 160,000$ 180,000$ 200,000$

500,000$ 25,000$ 50,000$ 75,000$ 100,000$ 125,000$ 150,000$ 175,000$ 200,000$ 225,000$ 250,000$

Workers Comp

Premium

Annual WC Premium Savings on Mod Factor AloneDifference between your mod & STEP median mod for your company size

STEP Savings through Lower EMR

Fatality, TRIR & DART Trends: What do they mean?

– Fewer fatalities=higher morale– Lower Total Recordable Incidence Rate (TRIR)=higher

employee productivity– Lower Days Away, Restricted or Transferred Rate

(DART)=fewer days without employees & lower workers’ comp rates

STEP participants show lower rates, increasing their productivity and profitability

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2013 STEP Results (2,044 ABC Contractor Members)

Participation

Diamond

Platinum

Gold

Silver

Bronze

Partic-ipant

19% (387)

33% (683)

36% (736)

9% (180)

3% (52)

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2013 STEP Results

–61% of STEP applicants have Total Recordable Incidence Rates (TRIRs) at or below BLS NAICS code averages

–28% have lagging indicator performance (TRIR, EMR) that significantly outperforms (>25% below) peers

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Strengthening STEP: 2014 and Beyond• ALL STEP participants MUST sign the Drug- and

Alcohol-Free Workplace Pledge (www.drugfreeconstruction.org)

• New leading indicator questions added to help track use among ABC members & move industry towards using leading AND lagging indicators as performance metrics

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New Leading Indicator Questions• Number of federal/state OSHA final citations issued

(after settlements) in 2013– Willful – Repeat – Serious – Other than Serious– De Minimis

• Length of safety portion of new-hire orientation (in minutes)

• Do you conduct site-specific safety orientations for all employees? (Y/N)

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New Leading Indicator Questions

• Do you track near misses/hits (situations that, had circumstance(s) been different, would have resulted in injuries/fatalities and/or an OSHA citation)? (Y/N)

• Do you establish/participate in site safety committees at each jobsite? (Y/N)

• Do you conduct safety training for employees beyond owner/user-required training? (Y/N)

• Have you signed the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org? (Y/N)

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2014 STEP Qualifying Criteria

• Participant/Bronze/Silver– Minimum 20 Key Components scores– 2013 OSHA Form 300A (“Summary of Work-

Related Injuries and Illnesses”)– Must sign the Drug- and Alcohol-Free Workplace

Pledge at www.drugfreeconstruction.org

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2014 STEP Qualifying Criteria

• Gold– Minimum 20 Key Components score– Incidence rate equal to or less than BLS NAICS code average– 2013 OSHA Form 300A (“Summary of Work-Related Injuries and

Illnesses”)– 2014 Insurer Support Statement– Must sign the Drug- and Alcohol-Free Workplace Pledge at

www.drugfreeconstruction.org

Only applicants with fewer than 100 employees may use 3-year incidence rate average to qualify for STEP Gold (must submit 2011, 2012 & 2013OSHA Form 300As. Companies under 50 employees may use 5-year incidence rate average to qualify; must submit 2009, 2010, 2011, 2012 & 2013 OSHA Form 300As)

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2014 STEP Qualifying Criteria• Platinum

– Minimum 20 Key Components score– Incidence rate 25% or below BLS NAICS code average– 2013 OSHA Form 300 (“Log of Work-Related Injuries and Illnesses”)– 2013 OSHA Form 300A (“Summary of Work-Related Injuries and

Illnesses”)– 2014 Insurer Support Statement– EMR/mod factor at or below 0.800 for application year (0.900 for

companies with 100 employees or less)– Loss Ratio 15% or lower for each of previous 3 years for companies

with less than 50 employees– No fatality/catastrophic accident within

application year and previous 3 consecutive years resulting in OSHA citation

– Must sign the Drug- and Alcohol-Free Workplace Pledge at www.drugfreeconstruction.org

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2014 STEP Qualifying Criteria• Diamond

– Minimum 20 Key Components score– Incidence rate at least 50% below BLS NAICS code average in each of

previous 3 years (companies under 100 employees may use 3-year average)– 2011 2012 & 2013 OSHA Form 300A (“Summary of Work-Related Injuries

and Illnesses”)– 2011, 2012 & 2013 OSHA Form 300 (“log of Work-Related Injuries and

Illnesses”)– 2014 Insurer Support Statement– EMR/mod factor at or below 0.700 (0.800 for companies with fewer than 100

employees)– Loss Ratio 10% or lower in each of previous 3 years for

companies with less than 50 employees– No fatality/catastrophic accident within application year and

previous 3 consecutive years resulting in OSHA citation– Must sign the Drug- and Alcohol-Free Workplace Pledge at

www.drugfreeconstruction.org 22

STEP Qualification Criteria for Smaller Companies• Companies under 100 employees=may use

3-yr. incidence rate average• Companies under 50 employees=may use

5-yr. incidence rate average• Companies under 100 employees may use

Loss Ratio qualifier for STEP Platinum and Diamond

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How the 5-year TRIR average helps small companies

• XYZ Company (19 employees; NAICS 236220) needs 3-year IR of 1.6 to qualify for STEP Diamond

• 3-year avg.=2.4—DNQ Diamond

• 5-year avg.=1.5—STEP Diamond

Year Incidence Rate

2013 0.0

2012 0.0

2011 7.3

2010 0.0

2009 0.0

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How Companies Use STEP- Self-evaluation tool—strengthening

their safety & training program using the 20 Key Components “roadmap”

- Long-term data comparison—track company’s historical performance against itself

- Benchmark performance versus:- Peers- Industry/BLS averages- Similar companies (type of work, man hours

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How Companies Use STEP Recognition– Pre-bid qualifications/bid packages

• STEP recognized among many owners/users as safety indicator

– Promoting the company• Ads, among peers, etc.• Benchmark for safety

performance

– Advertising• STEP logo on hard hats, vehicles, etc.

– Negotiating with insurance carriers• Proven safety performance

– Incentive to keep improvingUntil we reach 0 injuries, we can always do better! 26

Why STEP Matters

• Provides ABC members and non-members with the tools and resources to achieve world-class safety performance

The world-class standard for health, safety and environment in the construction industry embodies leadership commitment to not only developing a safety culture where each person is accountable for the safety and well-being of all, but providing the means and methods for each employee to leave work in the same—or better—condition than which they arrived.

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Questions?

Chris WilliamsDirector of SafetyAssociated Builders and Contractors, Inc.440 First St., NWWashington, DC 20001Ph. (202) 595-1855Mobile: (703) 859-1415Email: [email protected] www.abc.org/stepTwitter: @SafetyABC

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Appendix: 2014 STEP Application

The 2014 STEP application

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Section 1: Company Info

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Section 2: Safety Performance Data

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Section 3: 20 Key Components

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Section 4: Company and ABC Chapter Certification

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