Safety and wellness programs are an investment in a company’s employees and ultimately about creating a caring and wellness-focused culture. As with any new program, employees will not buy in unless they feel it is important to the leadership team. If the employees see leadership is truly invested in the success of this project, most will follow suit.

“Leadership driven” goes beyond showing interest in a safety initiative: It means that company leadership actively educates and communicates. If employees don't see continued interest in safety initiatives by leadership, they too will lose interest.

Creating a program isn’t just be about saving money on workers’ comp insurance. It should be presented and run as an employee wellness and safety initiative. Great companies care about the well-being of their employees and they prioritize safe work environments. As a result, their employees feel valued and are more likely to remain loyal to the company and the company may have fewer workers’ comp claims and recurring losses.

Making wellness and safety program leadership driven

Every organization has a culture; some outstanding, some not so good and many in between. Culture is difficult to change when imbedded in an organization. A company's risk culture can be determined by assessing whether "doing the right thing" wins out over "doing whatever it costs." A lack of a risk management culture can lead to debilitating injury, loss of life, poor financial results and business failure.

Managing risk is a process that begins at the very top. It must become a habit practiced by everyone in the company, from senior leaders and middle managers, to supervisors and laborers.

In his book The Power of Habit, Charles Duhigg writes about when Paul O'Neill became CEO at Alcoa in 1987 he spoke to a group of investors that owned stock in the company. They were expecting him to talk about grand plans to grow the business. He shocked them by saying “I want to talk about employee safety. While we have a better safety record than most in our industry, I intend to make Alcoa the safest company in America.” The investors were confused because he didn't say anything about profits. Some even called their stock broker immediately after his speech and sold their stock. It turned out to be one of the worst investment mistakes they ever made because within a year the stock hit a record high. In this case the CEO, supported by the management teams and board of directors, created a risk culture that had a powerful influence on risk behaviors at all levels in the company.

What Paul O’Neill accomplished was admirable. But the term “leadership driven” reaches far beyond the boss. It means that all key VPs, managers and supervisors are on board and understand the initiative just as well as the boss does. Employers need to be stern but honest when it comes to dealing with employees. They need to let them know that they are the employee manual, and they will do what needs to be done to enforce what is written. Don’t be afraid to be the bad guy—it’s in their best interest and the best interests of the company. At the end of the day it comes down to a very simple thought, employers need to treat an injured employee the way they would want to be treated if they were injured on the job. Ask:

• Where did we fail in the past regarding health, wellness and safety?
• Did we provide clear and concise procedures to be followed?
• What are the best tools to apply and who can provide them?
• What is the specific plan for the company and who is responsible for making that happen?

A large part of leadership is setting good examples, and knowing that it’s all about cause and effect. For instance, when an employee is injured, don’t berate them as being “lazy” or “stupid,” and certainly not in front of a room full of that person’s co-workers. As much as they are concerned for the well-being of their co-worker, they are also watching how the company reacts. Did they get flustered, critical, angry, all of the above? Did the employer respond quickly and with the right course of action (on-site treatment, nurse triage, call 911)?

Leadership is not a one-and-done thing; communication should be ongoing and thorough. Some ways to continue the dialogue are to simply communicate successes with the team, including loss-free periods, new procedures that are working, positive feedback received from safety vendors and even changes in the way the company’s insurance company classifies the business. Let the employees know that these wins are a result of their efforts so they know the initiative is working.

Finally, be aware that some supervisors mean well and have the greatest of intentions, but their psychological makeup is not that of a true leader. Employers can often evaluate where they may be lacking simply by observing how they interact with the employees. By using this measuring stick, employers may discover that some education might be needed for those tasked with delivering that leadership. Only then will they be capable to take safety commitment to the next level.

These are the steps that can help a company better illustrate what management’s commitment to safety should be, and that those in charge are doing the job when it comes to the company’s vision for safety.

Taking a leadership driven approach to reducing workers’ compensation costs can have a positive impact in various areas of a company’s business, and this approach has a fantastic return on investment.