NOE's workplace safety changes earn accolades
Two expensive workers' comp claims a few years ago made the management at Northeast Occupational Exchange sit up and take notice.
Although the 35-year-old health services provider had always had workplace safety policies and safety committees, the two claims prompted NOE to look for ways to head off future injuries and rein in costs.
"It really was all about becoming proactive and staying one step ahead of the claims," says Laura Hollis, director of human resources and finance for the Bangor-based nonprofit. "Now if someone has a not-quite-right ergonomic set-up, we have an assessment done right away. It doesn't take a lot of time or money."
The change has been significant enough to draw accolades from MEMIC, the workers' compensation insurance company based in Portland. It recently recognized NOE as one of six organizations with outstanding performance measures among MEMIC's 20,000 policyholders.
"We always look at a company or an agency or organization in the long term," says Donna Clendenning, a MEMIC safety management consultant. "Are the frequency and severity of injuries under control? Do they have a good medical management plan in place? Are they controlling loss? And most importantly, is management accountable, because if there's no buy-in from management, then no safety program will work. Northeast has all of those."
Clendenning says what impresses her most about NOE's attention to worker safety is the speed in which matters are resolved. The company provides mental health and substance abuse services, work that involves a lot of administrative support and office work. She says most of NOE's injuries are related to ergonomic issues. When David Nason, NOE's safety manager, spots a potential problem, he calls Clendenning.
"I get a call and go in and make a recommendation and David is usually on the phone with the supplier -- if the solution involves a piece of equipment -- while I'm still there," she says. "I can count on him to take care of his people within days or even the same day. No other companies do that kind of turnaround. It's incredible."
Hollis says the staff take safety seriously and "look out for each other," filing reports on what might seem like minor incidents. There are safety committees at NOE's four satellite locations (Dexter, Lincoln, Portland and Newport) whose members monitor employee welfare. All that increased attention has reduced claims at NOE and, with it, premiums, says Hollis.
Citing a MEMIC formula that uses 1.00 as an acceptable three-year benchmark for claims and premiums, Hollis says NOE used to be well above it, and paying an "excess premium" because of it. Now NOE receives a 0.77, an "extremely good" score, according to Kelly Barden, a spokeswoman for MEMIC.
Hollis says she couldn't put a dollar amount on the premium savings, but estimates it was a 40% swing between the highest premium they paid following the two claim losses and what they pay on their 90 employees now.
"This is where we intend to stay," says Hollis. "We've been at both ends of the spectrum. When you're a nonprofit, anytime you can save money, it's a good thing."
The other Maine companies recognized by MEMIC for their outstanding workers' comp programs were Borderview Holdings Corp., a rehabilitation and living center located in Van Buren; Down East Machine & Engineering, a design, machining and fabrication business in Mechanic Falls; Rockport Mechanical, a plumbing, heating, air conditioning and oil delivery business in Rockport; and Gorham Sand & Gravel, a site work and excavation contractor from Buxton.
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