Top performing companies around the world seek out and implement performance improvement in all areas of the business. Constantly identifying new or improved products or services, sales and marketing, work flow, and customer service standards. They recognize that great performance in all areas of the business will typically result in great company performance and enable a company to become Best in Class! The quest for constant improvement is conditioned and the actions by the employees and staff reflect this conditioning.
Zero is Life™ POLL
"When we shared our vision, plan and goals for Zero with our insurance company representatives they we thrilled! They commented that the fact that a company of our size & scope of work would implement a Zero base plan put us in a class by ourselves. It certainly provided us with leverage when we negotiated our insurance policies and costs." Safety & Risk Management Manager - Manufacturing & Installation Company
Zero is Great Business and the culture that evolves when you strive for Zero is powerful. It is true that when Zero is achieved the performance advances provide financial benefits and a significant ROI - Return on Investment.
Workers Compensation Insurance Cost Reductions!
Although Zero can be achieved in the first year, we will use hypothetical values based upon a reduction, not total elimination of injuries, to provide moderate projections of the first year ROI. Generally implementing the Zero is Life™ safety performance plan will result in a 35% to 50% reduction in losses during the first year of implementation.
Note: Ask your current insurance company to provide you a forecasted value based upon projected loss reductions (35% -50%). This will provide specific values for your ROI and goals for your Zero is Life™ plan.
Zero is Life™ Plan ROI
W/C Premium
Loss Ratio
Exp Modification
$ Reductions
Current Values
$200,000
50%
1.00 (Average)
$0
1st YR ROI Values (50%)
$200,000
Less (25%)
$50,000
After implementing the plan your organization experiences a 50% reduction in losses this would equal a 25% reduction in your loss ratio or a net $ reduction against a $200,000 premium of $50,000.
Industry standard ROI's and long term insurance savings suggest that for every $1 in loss ratio cost reductions will provide a $2-$4 (2to1- 4to1) in long term savings against insurance cost premiums. By eliminating loss dollars by $50,000 then at the low end of the calculation your long term ROI is $100,000 ($50,000x$2) or could be as high as $200,000 ($50,000x$4). Organizations that have higher loss ratios and/or experience modifications will see greater ROI and long term savings.
It is important to keep in mind that the Zero is Life™ plan is a long term plan to achieve and maintain Zero. Therefore, you organization will continue to receive ROI in other aspects of your business including;
Employee retention, motivation and morale!
Improved competitive advantage in hiring, production costs, quality, production efficiency (on-time performance)!
Business processes improvements - new equipment, work flow, product safety!
All of these areas provide significant ROI to your business and if calculated and assessed they would relegate the insurance costs savings ROI to a much lower position.
A Zero is Life™ culture of safety enables individuals independently or as a group to improve their safety environment. It becomes a self promoting culture, an energy source pulsing through the organization. It is extremely powerful and rewarding to see it in action. Eliminating risks and unsafe behaviors becomes a sustained way of life at work, at play and at home!
