ora res the relationship between human resources and safety performance webinar

78
WELCOME! The Relationship between Human Resources and Safety Training June 30, 2014 1:30 p.m. - 3:30 p.m. Heartland Payment Systems is the Lead Sponsor of all RES events. The ORA Restaurant Education Series (RES) provides members free access to educational events that help them sustain and grow their businesses and are developed based on member feedback. RES events support a key ORA initiative: the education of our members.

Upload: ohio-restaurant-association

Post on 15-Jun-2015

137 views

Category:

Education


0 download

DESCRIPTION

Reasons why you should read these slides: It’s totally focused on your industry, versus a general industry session. We discuss the new prospective billing - you need to know about this! The Ohio Bureau of Workers’ Compensation (BWC) requires employers who participate in a group/group retrospective rating plan and have had a workers’ compensation claim within the “green year” to complete two hours of mandatory safety training during the each policy year. This means that companies who are group/group retrospective rated participants with an injury claim must attend safety training, regardless of the size or severity of the claim. Per BWC guidelines, each company policy owner is required to fulfill separately the two-hour training requirement and may designate any company representative to attend. Failing to meet this requirement could jeopardize your group/group retrospective rating program status. The ORA is one of Ohio’s leading providers of foodservice-specific health and safety educational initiatives. The association links members of the foodservice industry with industry leaders that take an active involvement in educating them about procedures and policies that can reduce and prevent accidents in their establishments. The association understands that members don’t have the time and availability to sit through hours and hours of educational meetings that focus on addressing all of the health and safety concerns that can befall a restaurant. That’s why we target our educational seminars to specific areas of operation, like back-of-the-house and front-of-the-house training programs. Reading these slides will not give you credit. You must participate in live educational event.

TRANSCRIPT

Page 1: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

WELCOME!

The Relationship between Human Resources and Safety Training

June 30, 20141:30 p.m. - 3:30 p.m.

Heartland Payment Systems is the Lead Sponsor of all RES events.

The ORA Restaurant Education Series (RES) provides members free access to educational events that help them sustain and grow their businesses and are developed based on member feedback. RES events support a key ORA initiative: the education of our members.

Page 2: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Laura Morrison, Director, Member Services & IT

Ohio Restaurant Association

Phone: (866) 331-6424 E-mail: [email protected]

Page 3: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Brad Hunt, RiskControl360° Moderator of the conversation

Developing a Culture of Safety: Strategies to Support Safe Work Practices: Doug Wiegand, National Institute for Occupational Safety & Health

Controlling the Cost of Injuries - Third-Party Administrator Perspective: Jim Wirth, CareWorks Consultants, Inc. (CCI) & RiskControl360°

Controlling the Cost of Injuries - Managed Care Organization Perspective: Derek Stern, CareWorks

Safety & Labor Law - Top OSHA Citations for Restaurants: Keith Pryatel, Kastner, Westman & Wilkins, LLP

Expert Speakers

Page 4: ORA RES The Relationship Between Human Resources and Safety Performance Webinar
Page 5: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

How to Participate Today

• Open and close your Panel

• View, Select, and Test your audio

• Submit text questions

• Q&A addressed at the end of today’s session

• Everyone will receive an email with a link to view a recorded version of today’s session

• Your feedback is important! You will receive a prompt to complete a survey at the end of the session

Page 6: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

When a 1,000 things pile up, it’s easy to overlook the importance of health & safety issues - that’s dangerous!

The Health & Safety section of the ORA’s website helps you stay on top of concerns, offering solutions to today’s restaurant, food, and

alcohol safety issues.

www.ohiorestaurant.org/healthandsafety

Health and Safety

Restaurant Safety & Training

Information Resources Policies & Guides Videos & Multimedia

Restaurant Safety Consultants

Food Safety Alcohol Safety

Page 7: ORA RES The Relationship Between Human Resources and Safety Performance Webinar
Page 8: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Developing a Culture of Safety: Strategies to Support Safe Work Practices

Douglas Wiegand, Ph.D.National Institute for Occupational Safety

and Health

Disclaimer: The findings and conclusions in this presentation have not been formally disseminated by the National Institute for Occupational Safety and Health and should not be construed to represent any agency determination or policy.

Page 9: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

The safety culture of an organization is the product of individual and group values, attitudes, perceptions, competencies, and patterns of behavior that determine the commitment to, and the style and proficiency of, an organization’s health and safety management (HSC, 1993).

Or, the way we do things around here.

A Culture of Safety

Page 10: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

John’s manager sees that John is chopping vegetables at an amazing speed…

Should the manager:A: Nod in approval; the food will be prepped on timeB: Say nothingC: Tell John “Be Careful”; we don’t want him to cut

himself and stop workingD: Ask John why he is working so fast; try to understand

why John feels like he needs to rush

What does a ‘good’ safety culture look like?

Page 11: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Attitude vs. behavior change

Behavior is easier to see, and easier to change

Change the behavior and attitude may follow

Where to start?

Page 12: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Attribution of the causes of injuries Chance vs. “person” causes vs. latent causes Look at the whole picture

Injury logs can help identify trends and problem areas. Exploring and documenting near-misses

Thorough walk-through Identify trip/slip/fall hazards Employee involvement for continuous improvement

What types of controls can be implemented? Ongoing monitoring and review to ensure controls are

effective

How can we be preventive rather than reactive?

Page 13: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Hierarchy of Controls

Most Effective / Protective

Elimination

Substitution

Engineering Controls

Administrative Controls

Personal Protective Equipment

Page 14: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

The ABC Model of Behavior

Page 15: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Restaurant Example

Coworker reminder to use protective glove

Employee safely cuts food

Employee receives appreciative comment from manager

Page 16: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Restaurant Example

Restaurant owner attends ORA training event on safety culture

Restaurant owner provides safety training and equipment to employees

Restaurant owner experiences lower probability of worker injury

Page 17: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Safety does not end with training

Must check for employee understanding

Have employees demonstrate safe behaviors

Practice with feedback as part of training

Integrate behavior-based safety coaching into the culture

Management commitment and employee involvement

Peer observation and feedback

Ongoing monitoring and review

Page 18: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Behavior Safe At-Risk

Load appropriate?

Back straight?

Use legs?

Hold load close to body?

Shoulders and hips aligned?

TOTAL

Critical Behavior Checklist: Lifting

Total Safe Behaviors / Total Safe + At-Risk Behaviors X 100 = % Safe

Page 19: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Consult managers and employees to get their impressions of the problem areas and ideas / areas for improvemente.g. Have them help to develop checklists

When people contribute to a safety effort, their ownership and commitment to safety increases.Employees communicate about safety

Perception of management / owner’s total buy-in for safety practices and procedures increases employees’ participation

Unsafe behavior is a symptom, not the diseaseUnhealthy safety culture is a system problem

Page 20: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Thank you!

Email: [email protected]: 513.841.4240

Page 21: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Controlling the Cost of Injuries

The Third Party Administrator Perspective

Jim Wirth,CareWorks Consultants / RiskControl 360

Page 22: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Introduction - What is the best way to control workers’ compensation costs? Maintain a healthy, cooperative relationship with your

associates where communication is open and encouraged Safety/Prevention:

Make safety a priority for your organizationCreate and promote a safety process that reduces the

occurrence of incidents/accidents…and claimsInvolve all associates in your safety efforts

Controlling the Cost of Injuries

Page 23: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Claims Medical Only Claims:

Usually a minor injuryClaims with seven or fewer days of disability usually results in a small reserve for a limited period of time

Lost Time Claims:Claims with eight or more calendar days of disabilityReserves can occur in lost-time claims

Occupational Disease Claims:Claims where an employee contracts a disease in the course of

employment.These claims often develop over time

Controlling the Cost of Injuries

Page 24: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Cost Control Tools Safety Accident Investigation Communication Salary / Wage Continuation Deductible Vocational Rehabilitation Transitional Work Lump Sum Settlements

Handicap Reimbursement Subrogation BWC/Employer Sponsored

IME Surveillance Work with Third Party

Administrator (TPA) / Managed Care Organization (MCO)

Controlling the Cost of Injuries

Page 25: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Accident Investigation Communicate with your CareWorks Consultants

claims examiner as soon as the injury occurs Report to the MCO Thoroughly investigate the circumstances of the

incident / accident Document evidence in writing Utilize accident report and photographs Obtain witness statements Utilize classes at BWC Training Centers Important for PREVENTION…and hearings

Controlling the Cost of Injuries

Page 26: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Salary Continuation Should be considered for any claim if eight or

more calendar days of work will be missed, even if claim is not certified by employer CareWorks Consultants can provide the employer

with a premium impact study to help make a decision on whether salary continuation should occur

Controlling the Cost of Injuries

Page 27: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Transitional Work Reduces cost of hiring and training replacements Helps prevent injured worker’s adjustment to disability

lifestyle No break or loss in income Gradually returns employee to full duty work Lower costs contribute to reduced premiums Works in conjunction with salary continuation Consists of short term and temporary tasks

Controlling the Cost of Injuries

Page 28: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Vocational Rehabilitation Surplus charge for most services Return-to-work focused Closely monitored, individualized programs Case management professional assigned to each case. Participation is voluntary…but make it an interesting and

positive experience.

Controlling the Cost of Injuries

Page 29: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Lump Sum Settlements CareWorks Consultants helps identify claims appropriate

for Lump Sum Settlements (LSS) and determine settlement amount.

Employer directs CareWorks Consultants to offer settlement.

Employer, injured worker and BWC must agree to LSS. BWC pays settlement. Settlement will eliminate the reserve portion of the claim

and prevent future payments. Claim will remain in employer’s experience for four years.

Controlling the Cost of Injuries

Page 30: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Handicap Reimbursement Epilepsy Diabetes Cardiac Disease Arthritis Loss of sight Poliomyelitis Cerebral palsy Multiple sclerosis Parkinson’s disease Cerebral vascular accident Tuberculosis Silicosis Psychoneurotic disability Hemophilia

Amputation foot, leg, arm or hand Chronic osteomyelitis Ankylosis of joints Hyperinsulinism Muscular dystrophy Arteriosclerosis Thrombophlebitis Varicose veins Cardiovascular & pulmonary disease

(firefighters) Coal miner’s pneumoconiosis Completion of Industrial Commission or

similar rebab program Service related disability

Controlling the Cost of Injuries

Page 31: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Subrogation - A type of third party recoveryMotor vehicle accidentMedical malpracticeExposure to toxinsMachinery malfunctionsAnimal bites

BWC generally pursues

Controlling the Cost of Injuries

Page 32: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Independent Medical Exams (IME) BWC Independent Medical Examination - used to determine

whether the injured worker is capable of returning to his/her former position of employment, or if the allowed conditions have become permanent.

Employer-sponsored IME / IMR (Independent Medical Review) - used to provide medical evidence in support of an employer’s objection to the claim allowance or compensation.

Fee for this exam/file review is paid by the employer.

Controlling the Cost of Injuries

Page 33: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Surveillance Employer hires a private investigator if red flags exist

that may point to fraudulent activity. Employer contracts directly with the investigator. If fraud is identified, it can be reported by calling BWC at

1-800-OHIOBWC or logging on to www.ohiobwc.gov BWC generally does not allow a TPA to report fraud - it

must be reported by the employer.

Controlling the Cost of Injuries

Page 34: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Summary Contact CareWorks Consultants and your MCO

immediately when an accident occurs Thoroughly investigate the accident Document evidence in writing Understand how a claim impacts your rates Consider salary continuation on all lost-time claims Offer transitional work when worker is on restrictions Lump sum settlements / Handicap reimbursements Subrogation

Controlling the Cost of Injuries

Page 35: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

BWC Prospective Premium Payment Transition The Ohio Bureau of Workers’ Compensation (BWC) is

transitioning to a prospective billing system. According to BWC, this change aligns them with standard industry practices. Employers will see an overall base rate reduction of 2% as a

result of this change. The transition becomes effective July 1, 2015, for private

employers, and January 1, 2016, for public employers.

BWC Prospective Payment

Page 36: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

How it Will Work Earlier opportunities to sign up for incentive programs

Beginning in the fall of 2014, employers looking to participate in programs such as group rating, group-retrospective rating or other rating plans will have the opportunity to make those selections sooner.

A one-time credit in July 2015 Employer will receive a one-time premium credit, as BWC will

cover their August premium payment (covering the January to June 2015 premium) as well as the first two months of 2015 policy year (July and August) prospective premium.

BWC Prospective Payment

Page 37: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

How it Will Work (continued) A new payment schedule

Employers will receive their invoice in June 2015 and begin paying premiums before July 1, 2015. While that is earlier than before, all employers will be able to make quarterly or semi-annual payments,

and some employers will be able to pay up to as many as

12 installments. A true-up process

Because BWC is providing workers’ compensation insurance coverage based on estimated payrolls, they will ask businesses to report or “true-up” their actual payroll for the prior policy year. This begins in August 2016.

BWC Prospective Payment

Page 38: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

BWC Prospective PaymentWhat to Expect Industry TPAs will be contacting employers to inform them of the

changes. Be prepared to receive information from multiple TPAs.

It is important for employers to make sure they do not

have a lapse in their workers’ compensation coverage. Be sure you are current on all BWC payments. June 2014 - BWC will mail letter to employers announcing

change in alternative rating plan sign-up deadlines. October 2014 - BWC will mail letters to employers to

explain the upcoming premium payment changes and

remind them about the new plan enrollment deadlines.

Page 39: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Timeline August 31, 2014 - Payroll reports/premium due for 1/1/14 - 6/30/14 period (as normal)

November 24, 2014 - Group rating program filing deadline (tentative deadline for the 2015 policy year)

January 30, 2015 - Group retrospective rating program filing deadline (tentative deadline for the 2015 policy year)

BWC Prospective Payment

Page 40: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Timeline (continued) February 28, 2015 - Payroll reports/premium due for

7/1/14 - 12/31/14 period (final retrospective premium payment)

May 2015 - BWC will mail Estimated Premium Notice for 2015 policy year

Note: If the employer does not agree with estimation of payroll, BWC says they will be able to have it adjusted.

BWC Prospective Payment

Page 41: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Timeline (continued) June 2015 - BWC will mail payroll reports for 1/1/15 - 6/30/15 period. Employers will report payroll as normal, but will not be required to pay premium for this period. Payroll reports will be due as normal (8/31/15).

August 1, 2015 - BWC will mail first prospective premium invoice to employers for 7/1/15 - 6/30/16 policy year. First payment due 8/31/15, for the 2015 policy year only.

Note: In August 2015, employers will send in their payroll report for 1/1/15 - 6/30/15 period along with their first prospective payment for the 2015 policy year.

BWC Prospective Payment

Page 42: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Timeline (continued) November 2015 - Group rating program filing

deadline (tentative deadline for the 2016 policy year)

January 2016 - Group retrospective rating program filing deadline (tentative deadline for the 2016 policy year)

BWC Prospective Payment

Page 43: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Jim Wirth, [email protected]

614-827-0370

Thank you!

Page 44: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Workers’ CompensationBest Practices:

Managed Care Organization (MCO) Perspective

Derek Stern, CareWorks

Page 45: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Session Topics

Safety Flow Chart Role of the MCO 4 “R”’s Transitional Work

Page 46: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Never Take A Break from Safety

Safety should always be in the forefront.When there is a safety breakdown or the unforeseen occurs…injuries

happen.

Page 47: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Never Take A Break from Safety

Try to anticipate ANYTHING that could happen in the workplace.

If an injury does occur, have a process in place to ensure injured workers receive care and claims are reported immediately.

Work with your MCO, TPA and BWC.

Page 48: ORA RES The Relationship Between Human Resources and Safety Performance Webinar
Page 49: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Role of the MCO

Claim intake and reporting to BWC. Ensure injured workers receive appropriate

medical care. Authorize or deny medical treatments requested

by physicians. Assist employers and injured workers with

successful return to work. Payment of medical bills (excluding prescriptions). The MCO is a neutral party to the claim.

Responsibilities of the MCO.

Page 50: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Role of the MCO (continued)

Ensure injured workers and employers are aware of the latest progress in the claim.

Assist employer with the development of programs to enhance their workers compensation program (Transitional Work, Injury Reporting Packets).

Assist employer with identifying local initial treating providers.

Ensure medical documentation is transmitted to BWC.

Responsibilities of the MCO

Page 51: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Reporting

Early Reporting is crucial. Early investigation is important. Collect facts and documentation.

If You Have a Workplace Injury:

Early and effective medical management. Early return to work management. Lower claims costs.

Early Reporting Leads to:

Page 52: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Your Managed Care Organization (MCO) can help establish good reporting practices.

MCO can provide injury reporting packets to assist with claims filing.

No one can help with a claim they don’t know about.

Early Reporting Strategies

Reporting

Page 53: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Why is Early Reporting Important?

Claim scenario: WITH early reporting (Part I)

Date of Injury: 12-1-2011 Claim reported: 12-1-2011. Employer, TPA and MCO discuss case. Determine if

the claim is compensable. Facts reveal claim not legit, employer decides to reject

claim. Claim goes to hearing and employer has claim denied

by IC. No impact on employer’s EM or premiums.

Page 54: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Why is Early Reporting Important?

Claim scenario: WITH early reporting (Part II) Date of Injury: 12-1-2011 Claim reported: 12-1-2011. Employer, TPA and MCO discuss case. Determine if the

claim is compensable. Facts reveal claim IS compensable. Can we mitigate the

claims cost? TPA advises employer to continue salary. MCO and TPA

discuss transition work options with employer. Result: Compensable claim, but costs significantly

reduced due to early intervention.

Page 55: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Reporting

Witness Statements are important

Page 56: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Refer

Identifying an initial treating provider. Communication. Set expectations. Introduce the provider to the workplace. Employers have the right to recommend a

treatment facility to an injured worker. Injured workers have right to select any

provider.

Page 57: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Remain in Contact

Keep in touch with the Injured Worker. Contact your MCO/TPA/BWC claims

rep if you have claim updates. No such thing as too much

information.

Page 58: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Remain in Contact

Communication is vital to the success of your program.

If you are in doubt about anything, call your MCO Account Executive.

Don’t “assume” anything.

Communication is Key.

Page 59: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Return to Work Defining Transitional Work How is it best used? Transitional Work Best Practices BWC’s Transitional WorkGrants

Page 60: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

A work site program that provides an individualized step in the recovery of an injured associate with job restrictions resulting from the allowed conditions in their claim.

A successful transitional work program provides meaningful work which allows an injured worker to increase strength and endurance while decreasing restrictions.

Transitional work is not LIGHT DUTY! Take advantage of BWC’s Transitional Work

Grants.

What is Transitional Work?

Return to Work

Page 61: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Modified Duty Options

Aggressive return to work program that assists employers in the temporary “job placement” of injured workers with temporary restrictions that cannot be accommodated onsite.

The goal of MDOS is to help facilitate a timely and safe return to work while realizing cost savings. Employer Benefits Employee Benefits Non-profit Benefits

Modified Duty Off Site (MDOS)

Page 62: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Modified Duty Options

MDOS program should have an established positive outcome success rate.

Placements are made by an MDOS coordinator and managed by a Vocational Case Manager.

Programs are customized to each employer, including policy and program documentation.

MDOS (continued)

Page 63: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Claims Strategies

WITHOUT transitional work

Medical = $2,500 Compensation = $5,000 Reserve = $25,000 Total cost = $32,500

Why Transitional Work?

Page 64: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Claims Strategies

WITH transitional work

Medical = $1,500 (vs. $2,500) Compensation = $0 (vs. 5,000) Reserve = $25,000* Total cost = $26,500

*In general, utilizing transitional work can reduce the overall reserve in the claim

Why Transitional Work?

Page 65: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Lost Time Claims

Call your MCO and TPA immediately. You’re going to pay them, or you’re going

to pay them – it’s a matter of which pot it will come from.

Consider paying salary continuation (after first discussing with TPA). Injured worker must not miss regular pay cycle. Injured worker should receive regular pay.

What to do if a Claim is Going to be Lost Time.

Page 66: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Conclusion

An employer should never feel like they are alligator food.

Your MCO can help you avoid the workers compensation “pit.”

Page 67: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Thank you

Derek Stern Director of Customer Relations

  (734) 944-2193 direct

(888) 627-7586 ext. 3554 toll free [email protected]

  www.careworksmco.com

Page 68: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Safety and Labor Law - Top OSHA Citations for Restaurants

Keith L. Pryatel, Esq.

Kastner Westman & Wilkins, LLC.

Page 69: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

National study on HR Practices and Employee Turnover in the Restaurant Industry Jan. 15, 2014

Rockefeller & Ford Foundational Funding

Studies show 1 of 2 fast food workers turnover each year; 40% turnover rate for “moderately priced” restaurants; lower rates for “fine dining”, but higher per-employee turnover costs

Labor Law

Page 70: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Turnover costs -- $18,200/annual for 30 employees or less; $182,000 for 10 restaurant chain; $1.8 million for 100 restaurant chain

Most important HR practices that significantly reduce turnover and lengthen job tenure high relative wages job security longer work hours more discretion at work policies for promotion from within

Labor Law

Page 71: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Less than 20% of restaurant employers offer any level of paid sick time or paid time off; only 33% offer vacations or subsidized health insurance even “fine dining” is low. 30% offer paid leave or PTO; 5% offer paid vacations or subsidized health insurance.

Employee discretion is low in all restaurant establishment. Only 5% allow front-of-house employee discretion in their communications with customers without consulting managers; or in problem solving.

Labor Law

Page 72: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Annual pay for fast food employers:$13,257 ($255/52 weeks); $18,720 (back-of-house / BOH) and $24,123 (front-of-house / FOH) for “moderately priced restaurants”; $20,902 (BOH) and $34,990 (FOH) for fine dining.

Restaurant industry traditionally offers few employee benefits e.g. paid sick leave; paid time off; paid vacation; subsidized health insurance because: part-time; seasonal; student; immigrant workers

Labor Law

Page 73: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

High turnover is costly; Raises curb of selecting, recruiting and training replacementsNew employees are less proficient until they catch up

on the learning curve (less knowledgeable about menu - no customer relations)

Disruption of operations - manager attention to other areas is shifted.

How investment in HR reduces turnover

Labor Law

Page 74: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Hourly wages and job security are two most important factors.

Hours available to work and discretion exercise are other important facts.

Labor Law

Page 75: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

PPE Survey

Identifying workplace violence risks – cases / door markers / drop sales / windows

Disciplining for safety violations

HazComm Program

Lock Out / Tag out

Voluntary OSHA Log (300 and 300A) www.osha.gov

OSHA - Restaurant Trip-Ups

Page 76: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Thank you!

Keith L. Pryatel, Esq.

[email protected]

Kastner Westman & Wilkins, LLC.

3480 W. Market Street, Suite 300

Akron, OH 44333

Page 77: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Questions?

Page 78: ORA RES The Relationship Between Human Resources and Safety Performance Webinar

Social Media Webinar Series sessions: Every Tuesday at 2:00 p.m. July 1st Foursquare, Urban Spoon and Yelp - Time for a little R & R

(Revenue and Reviews) July 8th Instagram - Pics and Profits July 15th Pinterest - Pin to Win July 22nd Google + - Just Another Pretty Facebook?                        July 29th Mobile apps - So Many Apps. So Little Time.     

Other RES events August 6th - "Is Franchising the Right Choice?" 2:00 p.m.

Thank you!

Go to www.ohiorestaurant.org/res NOW to register!

Heartland Payment Systems is the Lead Sponsor of all RES events.