Safetip #16: Assess Contractors on Their Safety Statistics

February 17, 2016
By Jean-Grégoire Manoukian

In this week’s Safetip, we talk about contractor safety and the use of safety statistics to assess and evaluate contractors before hiring them.

In Safetip #8, we explained the reasons why firms must pay attention to contractor safety, and how can help reduce the risk of hiring contractors with questionable safety performance. In addition to the use of third-party firms, companies can better qualify contractors by also using their safety statistics.

World-Class Organizations Use Safety Statistics to Assess Contractors

According to a research paper from the National Safety Council’s Campbell Institute on best practices around the management of contractor and supplier safety, all 14 world-class organizations in EHS included in the study assess contractors on their safety statistics. The statistics include:

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

These rates and numbers are well understood across organizations of all sizes and industries, which make them standard for data collection and evaluation, the Campbell Institute says. All firms included in the research require contractors to submit these statistics for a given time period, typically the last three years.

Many organizations collect additional statistics and metrics beyond the baseline of rates provided above. For example, NASA also looks at a contractor’s TRIR as compared to an applicable NAICS code, worker compensation claims, injury logs, environmental reports and regulatory citations.

In addition, some participants in the Campbell Institute’s research have contingency plans if a contractor’s statistics are not initially satisfactory. For example, one of the organizations allows contractors to submit a continuous improvement plan as part of its documentation that must be reviewed and approved by the company’s materials management and safety departments.

Additional Resources

Here are links to additional resources on contractor safety, some of which were used for this post:

Visit Enablon Insights again next Wednesday for a brand new Safetip!