Safety Risk Assessment Calculator - Excel

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Safety Risk Assessment Calculator - Excel Powered By Docstoc
					Client Risk Assessment Tools
The most common problem areas in businesses are:
            Safety
            Attendance
            Turnover
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
              Safety
                              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
Absenteeism
             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
                                                                                                      $     2,654,080
                                                       Annual Cost of Absenteeism


Turnover
             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
            80%
of the Program Budget

				
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