Tag Archives: Return to Work

How Does Risk Management Create Value?

Risk management isn’t just a defensive tactic designed merely to keep something bad from happening. Effective risk management can also be constructive and encourage the creation of something positive. This positivity is a culture of value and self-awareness.

How to create value with risk management

Risk management doesn’t have to be a secondary addition to your business strategy, it can be incorporated into your overall business plan to give you direction and help you make the best decisions.

Balancing risk avoidance activities and responsibilities throughout the company makes it so that everyone is aware of what the risks are and how they are to approach them. Rather than a strategy dictated from up above, risk management becomes more of an open discussion that includes input from multiple areas. Not only is a fully comprehensive view of risk management at work in a company, it’s all-inclusive for management and employees alike.

Risk management allows for risks to become opportunities

Executives and board members are likely to have a much longer list of worries than their average employee would. Especially in the digital information age and with the popularity of social media for example, reputational risk is of real concern to many companies

Managing these types of risks, risks that have many variables, as part of your business strategy allows for large scale projects such as social media monitoring to be broken down into smaller manageable tasks and spread throughout the company. Employees can become more involved in the company’s risk management. It also potentially makes for more effective risk management if employees are encouraged to make suggestions for improvement or development.

Risk management best practice

To best understand how your risk management can bring value to your business, you need to understand how these risks can affect you. Generally they fall into four areas – strategic, operational, financial and compliance. How would your business plan get thrown off? What would loosing the use of a key piece of machinery mean to business? Often times the answers will come from those who would be directly affected by these risks, frontline staff.

Proactively managing these risks not only gives management, but all members of staff piece of mind that risks have been comprehensively assessed.

The value risk management creates can be viewed in many ways. It’s including employees of every level in the protection and management of the company. It’s tying business strategy with risks avoidance and management for efficient planning and strategizing. It’s creating opportunities for everyone to get involved and strengthening the company’s defenses against risk.

If you have risk management questions, click here to ask an expert

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Restaurant Workplace Accidents Are COSTLY!

We all know that safety is important, but are you aware just how costly a workplace injury can be? According to the Occupational Safety and Health Administration (OSHA), the average eye injury costs $1,463. It may not seem like much money, but the extra expense to pay for injuries has a powerfully negative effect to our restaurant’s bottom line.

Why is profitability also an important issue to you? The only way that  can stay in business is to operate at a profit, and that ability can be threatened by a serious workplace injury.

The Real Cost of Workplace Injuries

It may be surprising to hear that most companies do not have a high profit margin—3 percent is about average. Expenses take a large chunk of the income, and competition limits how much we charge our patrons.

Each time an accident occurs, the cost of the injury must be subtracted from profits. Consider the following two examples:

  • At a 5 percent profit margin, an extra $20,000 in sales is needed to compensate for a $1,000 injury.
  • If the profit margin is nearer to 1 percent, an additional $100,000 worth of new income is necessary to maintain that profit level for the same injury.

As you can see, that adds up to a lot of extra income just to compensate for a single injury. And we all know that we can’t just find more customers because we need the extra income. Thus, every time a worker gets hurt on the job, other employees are affected, too. The company may be forced to make difficult budget decisions such as cutting hours or jobs, plus some employees will need to work extra hours to make up for the injured employee’s lost time.

Also, recovering from an injury can mean time away from work, reduced compensation, painful rehabilitation and frustrating adjustments to daily life.

Practice Prevention

Though operating at a profit is essential to our success, our top priority is to keep our employees safe and healthy. That’s why we are counting on you to help practice good safety principles, including following all safety procedures, even if they seem unnecessary or slow you down. Safe work behavior will contribute directly to our bottom line as well as to everyone’s job security. By observing safety precautions, we can limit accidents.

It is always wiser to spend a bit more time doing the job safely than to risk getting a serious injury. Be sure to always follow all safety guidelines and stay alert for unsafe conditions

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Your Company’s Return to Work Program

Workplace accidents are unfortunate events that can disrupt both the physical and financial well-being of your employees. In the event of a work-related accident, your Return to Work Program will help your employees transition back into productive roles as they recover from an injury.

If an employee is injured as a result of his/her job, the Return to Work program is designed to get them back on their feet and return to their job as soon as possible. Benefits of the program to your employees include:

  • Being able to perform meaningful work despite physical restrictions while recovering
  • Maintaining personal income level
  • Retaining status within the company
  • Avoiding the boredom associated with long periods at home recovering
  • Not missing important company announcements, events, meetings and other goings-on
  • Maintaining body conditioning and helping return to pre-injury strength and condition level
  • Quickening the recovery process

Modified Duty

Modified duty work is an important part of the rehabilitation process that allows your injured employee to maintain a certain level of activity within a physician’s prescribed restrictions. Modified duty work combined with physical or occupational therapy is the best method for moving your employees along on the road to recovery.

In addition, modified duty is crucial to the successful return to the employee’s regular job after an injury. Identify modified duty positions within your organization and share these with your injured employee. These positions should be considered when accommodating temporary work restrictions.

If your employees have been injured on the job, attempt to place them in one of the modified duty positions in your job bank as soon as you receive a Return to Work release form from their doctor. Let them know they will be placed in the position that best falls within their temporary work restrictions.

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