1. How does the Pepper Construction's "TEAM" mission help keep the company on track toward better safety.
2. Why should Pepper Construction be concerned about the safety of its subcontractors?
Dave Pepper, the third-generation owner of Pepper Construction, met with his insurance group to review the group's annual summary of safety performance. To his surprise, Pepper Construction's experience modification rate (EMR) placed them in the bottom third of the group. The EMR compares the frequency and severity of workers' compensation claims between companies of similar size operating in the same type of business and reflect s the degree to which a particular company's experience is better or worse than the industry as a whole. At the time, Pepper Construction Group's EMR was 0.71, nearly 30 percent better than the national average for general contractors, but twothirds of the insurance group members were even better. Safety performance was good, but not good enough.
Pepper Construction had begun to develop a longrange strategic planning initiative. The initial goals set by the company's leaders were related to business growth-profit, efficiency, information technology, and production-but not one mentioned safety. Pepper reminded his team members that the company's most valuable asset has always been its people, and he encouraged them to shift their focus. It was as if a light went on within his management group. They fully embraced the commitment to safety and saw that it would protect the company's greatest asset-their people. The strategic plan shifted, and safety became the first priority. Their initial goals remained, but safety was now the foundation on which profit, growth, and productivity would be built.
Senior management, along with a newly formed safety committee, developed the following TEAM safety mission statement to communicate the company's commitment to an accident free workplace:
•• Training for all employees
•• Empowerment where everyone has the authority to say "no" to unsafe conditions
•• Action-the commitment to taking the steps necessary to protect employees and continuously strive to improve the safety program
•• Motivation-making sure the safety of the company's people is the top priority, above all else
The challenge was to communicate the safety mission through the entire company, from the hourly craftsmen through the executive level. Previous annual safety seminars included every craftsman in the company, often more than 600 people in the same lecture hall listening to lectures and generic training topics. To emphasize their commitment to safety, Pepper and Ken Egidi, the president of Pepper Construction Company, held much smaller meetings limited to no more than 40 people. They took the time to shake every employee's hand and made it very clear that everyone had the right, and responsibility, to work safely.
Pepper and his team worked hard to ensure all employees knew the company was serious about safety. They put in place additional resources to support this goal. For example, the company hired a new corporate safety director, increased training opportunities, and formed trades safety committees