Integrating Theory and Experience

Some small business owners erroneously believe that the modest size of their enterprise makes them immune from following OSHA regulations. In reality, even though there may be different standards for some regulations, small businesses do have to pay attention to safety. Indeed, workplace safety is an important consideration on a number of levels. Attention to safety issues can not only help businesses avoid legal penalties, but also improve employee morale, productivity, and retention. Moreover, effective workplace safety programs often have a tremendous impact on a company's bottom-line financial performance. In addition to the hidden benefits in retention and productivity that go hand-in-hand with such programs, businesses armed with solid workplace safety policies and records realize enormous benefits in the realm of insurance. "An employer's workers' compensation premium is based on several factors," noted Arkansas Business. "Among them are classification code, payroll, and accident history. No factor has more control over insurance premium or is less understood by policy holders than the experience modification or 'mod.' The mod is an indicator of how an individual operation's accident rate compares to other businesses within its industry. Three consecutive years of actual workers' compensation claims provide the statistical basis for an employer's mod." Under this system, companies that are determined to have a higher accident rate (as determined by workers' compensation claims over a three-year period) than the industry average pay higher premiums. Conversely, companies that boast a claim rate lower than the industry average will benefit by paying less expensive premiums.

Workplace safety programs can take many forms and cover many potential areas of concern. Such disparate measures as provision of personal safety equipment, installation of equipment controls, creation and dissemination of operational manuals, policies of hazardous materials handling, adoption of drug and alcohol testing policies, introduction of employee counseling services, ...