Evaluate Contractors by Using Their Safety Statistics - Safetip #159

Safety Tip and Best Practice
February 13, 2019

This week’s Safetip is about evaluating contractors through their safety statistics before hiring them for work projects.

Contractor Safety to Remain a Top Issue

According to a report from ISN Analytics, the use of contractors and the outsourcing of work continue to grow. About 42% of organizations plan to increase their outsourcing.

Almost half of the surveyed contractor hiring organizations reported that between 40% and 100% of their on-site work is completed by contractors, and 23% of organizations use over 1,000 contractor companies. In 55% of organizations, the EHS department owns the contractor management process.

These figures highlight the growing need to improve contractor safety management in order to better safeguard the safety of a workforce, employee and contractor alike. The safety performance of contractors and subcontractors has a great impact on the safety performance of hiring organizations.

World-Class Organizations Assess Contractor Safety Statistics

Since contractors have a great impact on the safety of workforces and the safety performance of hiring organizations, companies can’t afford to select the wrong ones. To mitigate the risk, you can use a contractor prequalification service, or implement a contractor management system in your own organization.

One way to make sure that the right contractors are selected is to evaluate them on their safety statistics. According to research by the National Safety Council’s Campbell Institute on best practices in contractor management, all 14 world-class organizations in EHS included in the study assess contractors on their safety statistics, including:

  • Experience Modification Rate (EMR)
  • Total Recordable Incident Rate (TRIR)
  • Fatality Rate
  • Days Away, Restricted or Transferred (DART) rate
  • Other OSHA recordables

All firms included in the research require contractors to submit these statistics for a given time period, typically the last three years.

If you decide to implement a contractor management system in your own organization, be sure to make the assessment of contractor safety statistics an important part of the system.

Each week we publish a Safetip where we share a safety tip or best practice that contributes to safety excellence. Visit Enablon Insights again next Wednesday for a new Safetip!

Download NAEM’s “How to Successfully Deploy an EHS&S Software System” report to learn more about six steps that will help you start and stay on the right track as you introduce an EHS&S application that can deliver tangible benefits.

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Jean-Grégoire Manoukian

Content Thought Leader