Client Risk Assessment Tools
The most common problem areas in businesses are:
Lets Review your status in regards to these areas of concern.
Enter the number of employees your company has at the site in question. 1600
Information is required to make the following calculations.
Your Provided Data will be used with Statistics
and Data provided by the National Safety Counsel,
The Society of Human Resource Managers
And Risk Management Studies.
Incidents Per 100 Employees
What is your company's OSHA Frequency Rate? 5.6
This rate is comprised of your Lost Time Accidents
and Recorded Accidents, per each 100 employees.
Multiplied by your employees count, gives
a projection of Risk to your Workers comp carrier.
This indicates your company averages this number 90
of LTA's and Recorded Accidents.
The insurance Industry sees this as their Risk to
insure the client. The Recorded Accidents or "Near
Misses" are calculated as if they were a Lost Time Accident.
The insurance carrier is trying to forecast their
exposure and they will calculate their risk at Industry Averages
$38,000 per incident, is the National Average per the National Safety Counsel.
Every Near Miss will be calculated as a Lost Time Accident by your insurer.
Projected Risk Using National Average $38,000 $ 3,404,800.00
This will effect the monthly premiums and deducible
amounts the client will be facing.
You may hear the word "Mod".
The "Mod" is the rate the customer is rated.
A 1.0 Mod is $1 of insurance for $1.
A 1.35 Mod is $1 of Insurance for $1.35
A Mod can be below 1.0 with a great history of safety.
Check to see what your MOD rate is
What is your company's Absenteeism Rate? 5.0%
Society of Human Resourse Managers will use this formula to apply a cost to absenteeism.
Hourly Wage $ 11.00 $ 11.00
Benefits % 30-50% is common 35% $ 3.85
Admin Cost as a % 10% $ 1.10
Per Hour $ 15.95
Daily Number Absent
Rate x Employees 80
Employees X Hourly Rate
Hourly Cost $ 1,276.00
Normal Annual Hours worked 2,080
Annual Cost of Absenteeism
Insert the company Turn Over Rate 15%
Rate (x) Employees = Numbers Hired 240
Insert the cost to Hire and Train each person $ 3,500.00
Advertise, Interview, Physicals, Drug Tests $ 840,000.00
Uniforms, Training, etc….
Total Cost of Safety, Absenteeism and Turnover $ 6,898,880
These costs can be reduced and turned into Additional Company Profits.
Breakeven Points for Budgeted Solutions
Max Budget Used Employees Per Person
2% $ 137,978 1,600 $ 86.24
3% $ 206,966 1,600 $ 129.35
4% $ 275,955 1,600 $ 172.47
5% $ 344,944 1,600 $ 215.59
6% $ 413,933 1,600 $ 258.71
7% $ 482,922 1,600 $ 301.83
8% $ 551,910 1,600 $ 344.94
9% $ 620,899 1,600 $ 388.06
10% $ 689,888 1,600 $ 431.18
BUDGET COST PER PERSON
Employees as shown at the top of form
This shows where we want to choose our program budget as a % of their losses.
Most awards programs will budget 5%-10% of the Cost of Problem areas. We show 2%-10% in these boxes.
Incentive Program Designed to Positively Effect Targeted Performance Areas.
Participants 2500 Overall Program Budget $500,000
Projected Actual Budget Used $400,000
Most Good Programs will use 70%-80% of the Program Budget
Individual Budget $0.096 Hourly $16.67 Monthly
$3.85 Weekly $200 Annually
Key Performance Indicators
Safety Monthly 70% $11.67 Points
Individual 75% $8.75 1,750
Teams 25% $2.92 583
Attendance Monthly 15% $2.50 Points
Individual 75% $1.88 375
Teams 25% $0.63 125
Turnover Monthly 15% $2.50 Points
Teams 100% $2.50 500
Pt Cost Pt Total Months Annual Points
$16.67 3,333 12 40000
Cost of Safety Absenteeism and Turnover Presently averages around $7,650,000
Anticip[ated Program Expenditure Annually $400,000
Cost reduction Needed to Fund the Program 5.229%
Incentive Awards / Cost of Issues
of the Program Budget