Safety pays.
At a time when retailers are examining every cost driver in their operations, many are finding that some of the most impressive savings come from well-executed safety initiatives.
Retailers such as Balls Food Stores, Kansas City, Kan., which has reduced workers' compensation claims by 33%, told SN there are a number of measures that can improve safety.
The most effective programs, they say, stress thorough training and awareness and are reinforced by accountability at all levels.
Harps Food Stores, Springdale, Ark., for example, has reduced its accident rate and time-off rate by about two-thirds in the past two years.
"This was achieved by allocating the cost of workmen's compensation claims and general liability claims back to the store department where the injury occurred, thus getting the store manager and department manager attuned to accidents and injuries," said Harlan Earp, vice president of human resources.
"Those costs are charged back as controllable expenses, so they impact the manager's bonus," he added.
"Making people accountable and showing them how accidents and injuries impact the bottom line has had the biggest effect on claims. It has inspired managers to develop preventive measures," Earp added.
Retailers are enhancing work safety by instituting comprehensive training programs and preshift exercise regimens and by stressing the importance of maintaining a clean work environment.
Safety skills testing and certification are followed up with store inspections, while store-level safety committees monitor programs on an ongoing basis.
The goal of these efforts is to prevent accidents and injuries and reduce workers' compensation claims and general liability costs.
Balls Food Stores attributes its workers' compensation cost savings to training, promotion of safety awareness and a revitalized early-return-to-work program, according to Jerry Lutjen, workers compensation and safety coordinator.
Nash Finch, Minneapolis, introduced a preshift exercise program that contributed to a substantial reduction in workers' injuries and compensation claims in its Baltimore facility, where back injuries had been prevalent, said Barb Knaack, safety manager at the corporate headquarters.
"It has helped immensely. Employees were strongly encouraged to do the exercises before they started working each day and the practice caught on. At first the exercises were led by management, but soon associates were leading them. Today close to 100% of the employees there are participating," she said.
At Harvest Foods, Little Rock, Ark., dramatic savings in workers' compensation were achieved by an aggressive, multifaceted safety program developed and implemented by Dyer Custer, loss control director, and his staff. Harvest Foods is now operating under Chapter 11 bankruptcy protection, with its stores expected to be acquired soon by other buyers. Nevertheless, the chain had succeeded in devising a highly effective worker-safety program.
The initiative includes store inspections, safety meetings, safety awareness campaigns and incentive programs. Custer started taking steps to reduce workers' compensation and general liability claims when he joined the chain in 1992.
"We initiated safety programs with little slogans to remind employees about safety and sanitation issues. We required safety meetings to be held at each store with all of the department heads. "The meetings were often conducted by the assistant manager and usually involved four to five people. They would meet about half an hour weekly or biweekly, depending on the store situation," Custer said.
Each store is inspected at least twice a year. "Even our security department participates in store inspections, which are very in-depth," he said, noting that stores are graded and copies of the reports are sent to operations staff at the corporate level. Harvest Foods also initiated an alternate work program, which is known as "light duty" at many companies.
At Balls Food Stores, an early-return-to-work program was revitalized last year, Lutjen said.
"We managed that program closely to make sure that teammates were getting back into positions in which they would not be re-injured," he said.
Harps Food Stores has a very aggressive return-to-work program that has been in place about three years, Earp said.
"We get people back to work any way we can. We will find a job for any employee who is off on injury and work with the employee's restrictions and find accommodations. We are taking the incentive out of staying home," he said.
Training in safe work practices is a high priority at Balls Food and Brenham Wholesale Grocers, Brenham, Texas, this year.
Brenham has seen a significant decrease in accidents and workers' compensation claims since implementing a safety training and certification program three years ago, said John Ehlert, inventory control manager.
"Forklift drivers are trained and given a certificate of completion of the training. Following the training, the employee has to pass a test with a minimum score of 80 to be certified," Ehlert said.
Balls Food's Lutjen said the chain is going to step up training this year.
"What we plan to do in 1997 is follow up more, and create departmental checklists so store management will know in what areas their teammates need training. We will be monitoring the training more closely," particularly in materials handling and equipment safety, he said.
At Nash Finch, the focus is on getting all associates involved in safety, Knaack said.
"We are trying to put the responsibility on each individual facility. We will be doing some safety-training sessions to help them become more familiar with [Occupational Safety and Health Administration] laws and assist in training in other areas," she said.
"We don't just want to reduce workers' compensation claims, but also monitor our liability for accidents. A lot can be prevented with good housekeeping."
Knaack stressed accountability for safety. "The key is to bring it down into the departments. If each department can make its work area safe, it becomes a more manageable job," she said.
The program is working particularly well at Nash Finch's facility in Fargo, N.D., which has not had to pay any workers' compensation dollars for lost days of work for more than a year, Knaack said.
"They hold safety meetings and maintain a positive attitude. Safety has become a way of life there," Knaack said.
