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Key Takeaways

Key characteristics of contractor

safety programs at each stage of

maturity and where your program stands today

Actionable next steps to improve your contractor

safety program at any maturity level

How technology supports mature contractor safety

programs

Read this eBook to learn:

minute read12

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Safety Executives

Safety Managers

Front-Line Safety Supervisors

Safety Committee Members

Supply Chain/Procurement Managers

Who Should Read This eBook

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Introduction

The Contractor Safety Compliance Management Maturity Model

Identifying Where Your Program Stands Today & Actionable Steps to Improve It

Suggested KPIs for Contractor Safety Programs

Conclusion

Table of Contents

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Leading companies recognize that cultivating a safety culture is critical, not just internally but also across their contractor workforce. A strong contractor safety program can help prevent worker injuries, protect company reputation, support compliance with government regulations, and avoid unnecessary loss.

But what does a strong contractor safety program look like and how does a company get there? This eBook introduces the Contractor Safety Compliance Management Maturity Model, which outlines the key characteristics of contractor safety programs at each stage of maturity and provides guidance to help a company strengthen (or start!) their own program. This eBook also discusses the role that technology plays in supporting mature contractor safety programs.

Introduction

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The Contractor Safety Compliance Management Maturity Model is a tool that helps companies assess the current state of their contractor safety program and identify the critical next steps needed to improve it. Organizations move across the model’s continuum from left to right as they become increasingly mature in their implementation and management of their contractor safety program.


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Three key drivers influence a company’s position along the maturity model continuum:

Key Drivers of Contractor Safety Program Maturity

○ Is contractor safety an executive priority and how pervasive is program buy-in across the company?

○ Is there a willingness to invest in the necessary manpower and technology resources to support the program?

○ Do the program’s objectives end at contractor prequalification, or are they focused on driving continuous year-over-year improvement?

○ Does the company have a centralized repository to store and easily analyze contractor safety data?

○ Is technology in place to enforce consistency with respect to the contractor data that’s captured and how it’s reviewed?

○ Are mobile tools used to efficiently share and capture contractor safety information in the field?

○ Have KPIs (key performance indicators) been defined for contractor safety are how are they used to manage?

○ Is historical data available to identify trends over time?

○ Are diverse data sources – including leading and lagging indicators – available to provide program insights and drive decision making?

Culture Technology Data

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Ad Hoc Developing Program Basic Program Advanced Program Strategic Program

Dedicated resource, plus field support for observations and audits

3rd-party support for data review and audits

Focus on improvement/ helping at-risk contractors get better

Risk-based prequalification requirements in place

Safety compliance mgmt. system in place

3 years data

Advanced KPIs in place

Comprehensive view of contractor safety/risk

Program reviewed at least annually

Program buy-in at all levels


Focus on continuous improvement

Risk-based prequalification with defined exception processes

Safety compliance mgmt. system with mobile tools

3+ years data

Integrated KPIs in place

Increasingly granular data capture


Program continuously enhanced based on latest trend metrics

No internal resource focus

Inconsistent, ad hoc capture of contractor safety program info

Data in emails/local files

No historical data

Small part of someone’s job

Beginning to define prequalification criteria

Limited contractor data capture

Data in local Excel/Word files

Very limited historical data

Focus on consistent prequalification

Standardized contractor data capture and review

1+ year data

Basic KPIs in place

Safety compliance mgmt. system in place (or centralized file)

Significant part of someone’s job or dedicated resource

Often 3rd-party support for data review

This high-level view of the model illustrates that, as a company’s culture and use of technology and data evolve, so does the maturity of its contractor safety program. Read on for an in-depth look at each stage of maturity.

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At these early levels of maturity, contractor safety either isn’t a focus for the company, or it’s just emerging as an area that needs attention, perhaps in reaction to a contractor incident. If someone “owns” contractor safety, it’s typically a small part of their job responsibilities at these stages.

Various departments may have begun to define criteria for vetting contractors based on safety performance, but there’s no consistent standard used across the organization in terms of what data is captured or how it’s reviewed. Data – OSHA logs, EMR letters, safety manuals – tends to be requested from contractors on an ad hoc basis. At this stage, the company lacks a centralized place where all contractor safety data is stored, so it resides in emails or local files limiting any historical perspective.

Ad Hoc & Developing Programs







3 years data









3+ years data








No historical data








1+ year data

Basic KPIs in place




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Invest in manpower. Your program simply won’t mature if contractor safety stays at the bottom of someone’s “to do” list, so make it a focus of someone’s role and their job’s success metrics. Depending on the size of your company and contractor pool, it may warrant a dedicated role.

Establish basic KPIs to support contractor prequalification. A solid place to start is tracking TRCR, number of fatalities, number of vehicle incidents, and EMR for each contractor, plus the average of each of these stats across your total contractor pool. You’ll want to gather contractors’ safety manuals as well.

Implement a centralized repository for contractor safety program data. Whether you invest in web-based safety compliance management software, or use a shared drive, it’s time to centralize this data so that you can monitor its consistent capture across all contractors and track your KPIs.

Define and implement contractor data review standards. Document a standard procedure for reviewing each contractor’s submitted KPI data and safety manual, as well as establish the baseline for an “approved” contractor. Put these standards into practice to create consistency.

Key Steps to Take Your Ad Hoc or Developing Program to the Next Level

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Contractor safety programs at this level are characterized by their successful achievement of consistency: a single prequalification process, supported by standardized contractor data capture and review processes. To get here, these companies made an internal resource commitment – managing the contractor safety program is either a large part of someone’s job or a dedicated role. They’ve also established a centralized repository for contractor safety data, using either web-based safety compliance management software or a shared drive. Some companies continue to handle contractor data collection and review internally, but at this stage, the administrative burden may have necessitated third-party support to ensure that all contractors’ data is consistently captured and vetted (this support is usually provided with a safety compliance management system).

From a data standpoint, the company has standardized what is required from each contractor – typically a completed questionnaire about their safety program, their safety manual, plus core OSHA stats, vehicle incident stats, and EMR – and they’ve captured at least the most recent year’s data for each contractor. This allows the company to establish basic KPIs for their program and begin working towards tracking year-over-year contractor safety trends.

While this maturity level represents a solid contractor safety program, a basic program doesn’t account for varying degrees of contractor risk, nor is it designed to drive continuous improvement to contractor safety. Opportunities also remain to enhance program efficiency through the use of technology.

Basic Programs







3 years data









3+ years data








No historical data








1+ year data

Basic KPIs in place




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Enhance prequalification to account for risk. Contractors introduce varying levels of risk to your business based on the types and volume of work they do. Establish additional prequalification requirements – e.g., undergoing an audit – for higher-risk contractors and organize your contractor list into risk-based groups.

Shift your program’s focus to driving safety improvement among contractors. Expand your program to include contractor safety observations and audits, which provide insights that help you pinpoint and correct areas where contractors have program weaknesses. Define your criteria (paper forms are fine at this point) and leverage field staff to conduct them. Third-party auditors also add value, as they bring an impartial perspective and best practices from their work across industries.

Implement safety compliance management software if you haven’t yet. You’ll outgrow a spreadsheet-based approach as you enhance your program and the benefits of a dedicated system are numerous:

○ Improve efficiency: auto-enforce your varying risk-based requirements, easily see who’s approved to work (or why they’re not), quickly “slice and dice” and analyze your expanding data set

○ Track contractor compliance with other requirements – e.g., insurance coverage – giving you one place to see a comprehensive view of readiness to work

○ Give field personnel system access to verify approved contractors, minimizing downtime and removing the burden of responding to these types of calls/emails from an internal resource

○ Eliminate labor-intensive tasks from your staff and ensure a consistent review process: most software vendors gather and review your contractors’ data, but be sure you understand exactly what the vendor will look at – safety manual/policy reviews may be an add-on cost

Key Steps to Take Your Basic Program to the Next Level

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Advanced contractor safety programs are set apart by looking beyond prequalification and including tools that help contractors continuously get better at safety. Companies at this level have a dedicated resource to manage their holistic program, which now includes oversight of prequalification processes plus contractor safety observations and audits. The addition of observations and audits is a critical advancement. While often initially paper-based, these tools capture valuable trend data regarding areas where contractors have safety weaknesses and provide critical visibility into the day-to-day implementation of contractors’ safety programs. They also create opportunities to provide coaching or require formal corrective action that helps contractors improve their programs. Field personnel, plus third-party auditors, support these efforts.

For prequalification, risk-based requirements are used – contractors that do high-risk or high-volume work have additional requirements to meet. Companies at this level have invested in safety compliance management software to efficiently manage their increasingly complex program and data, and get a clear view of contractor readiness to work across safety and other requirements (e.g., insurance). The software vendor is being leveraged to support the time-consuming administrative tasks of gathering and reviewing contractors’ safety program information.

Data is a necessity to identify where opportunities for improvement lie. Audit and observation findings have been added to program KPIs, plus the past 3 years’ worth of safety data is captured from contractors for enhanced historical perspective. At this stage, companies have gotten into a cadence of at least an annual review of their contractor safety program to see where adjustments may be needed, armed with their expanding KPIs and trend data.

Advanced Programs







3 years data









3+ years data








No historical data








1+ year data

Basic KPIs in place




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Go mobile. Leverage your safety compliance management system’s mobile tools in the field to more efficiently communicate who’s approved and capture paperless contractor safety observation and audit reports. With real-time capture of findings, you can manage to emerging trends while a project is still ongoing.

Plan for the unexpected. Identify and prequalify a “backup” contractor for critical work situations and/or locations that can be used in the event your usual contractor is unavailable. Establish a formal exception process (including system documentation) for use of an unapproved contractor in an emergency or when the business need arises.

Get broader and more granular with your data. Expand your range of KPIs to ensure you’re tracking both leading and lagging indicators (i.e., measures of both incident prevention and history) and capitalizing on all of your data sources – self-reported data from contractors, internally-produced contractor observation and audit findings, and 3rd-party data (e.g., audit findings, industry benchmarks). Consider requiring some safety data to be reported by contractors at more granular levels to facilitate benchmarking (e.g., comparison of individual projects).

Key Steps to Take Your Advanced Program to the Next Level

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At this level, there’s contractor safety program buy-in from the top down throughout the organization. Companies at this level also take a “partnership” view of their program. It’s not about being punitive towards contractors, it’s about a partnership in safety and having tools in place that help everyone create a safer workplace.

These companies are strategic in their use of technology to streamline process and minimize downtime. They leverage mobile tools to provide real-time information about who’s approved to work and capture paperless contractor observation and audit reports that synch directly to the safety compliance management system for trend analysis. They’ve also planned for exceptions: they have “backup” contractors identified in their system for critical work situations/locations and a well-defined process for approving and documenting the use of an unapproved contractor when necessary.

They also strategically use data to guide enhancements to, and investment in, their program. For example, where is an awareness campaign needed? An update to contractor work rules? More training? Additional manpower? These companies continue to build upon their historical view of trends and track an integrated mix of leading and lagging KPIs in their safety compliance management system. Contractors may be required to report safety stats at more granular levels – e.g., tracking incidents by project – enabling detailed analysis and benchmarking. These very mature companies excel at continuously adapting their contractor safety program and targeting their resources based on the latest trend metrics, helping them guard against complacency.

Strategic Programs







3 years data









3+ years data








No historical data








1+ year data

Basic KPIs in place




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The ultimate goal is a mix of leading and lagging indicators (i.e., measures of both incident prevention and history) to guide your program. Start with the basics (in light blue) and add KPIs as you have more sophisticated technology to support data capture and analysis, as well as broader and more granular data sources.


Program Management ○ Contractor onboarding status ○ Risk-based contractor grouping

mix

Safety Stats(OSHA-reported, on my jobsites

only, on each project)By contractor (min 3-year rolling) and YoY average for total contractor pool:

○ TRCR/TRIR ○ # of fatalities ○ # of motor vehicle incidents

○ EMR

○ DART Rate ○ Other Recordable Incident Rate

○ Days Away/Lost Time Incident Rate

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Benchmarks ○ Contractor vs total pool ○ Total pool vs OSHA industry

average ○ Project vs project

Audit Trends(monthly, quarterly, YoY)

Internal audits ○ # of audits performed ○ # and types of findings

(by category/sub-category, positive/negative, region, project, contractor, work type, etc.)

3rd-party audits ○ # of audits performed ○ # and types of findings


Observation Trends(monthly, quarterly, YoY)

○ # of observations performed ○ # and types of observations


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Key Characteristics at Each Stage of Maturity

Ad Hoc

Developing Program

Basic Program

Advanced Program

Strategic Program

Culture

– No internal resource focus

– Small focus of internal resource’s role

– Beginning to define prequalification criteria

– Significant focus of internal role or dedicated resource

– Often 3rd-party support for data review

– Focus on consistent prequalification process (data & business processes)

– Dedicated resource, plus contractor observation reports/audits by field personnel

– 3rd-party support for data review & audits

– Focus on improvement/helping at-risk contractors get better

– Contractor safety program reviewed at least annually

– Program buy-in at all levels

– Dedicated resource, plus contractor observation reports/audits by field personnel

– 3rd-party support for data review & audits

– Formal exception process established

– Contractor safety program continuously enhanced based on latest trend metrics to drive ongoing safety improvement

Technology

– Emails/documents saved locally

– Excel/Word files saved locally

– Web-based safety compliance management system or other centralized repository (e.g., Excel file on shared drive) in place

– Web-based safety compliance mgmt. system in place with user roles for field personnel

– Risk-based contractor requirements in place

– Comprehensive view of contractors across other safety & risk-related requirements (e.g., insurance)

– Safety compliance mgmt. system in place, incl. support for risk-based requirements, exception process, and capture of observation & audit data

– Mobile tools in field

– Comprehensive view of contractors across other safety & risk-related requirements (e.g., insurance)

Data

– Inconsistent, ad hoc contractor data capture

– No historical data

– Limited contractor data capture

– Very limited historical data

– Standardized contractor data capture, incl. core OSHA safety stats and policies

– Basic KPIs in place

– 1+ years data

– Expanding data capture, incl. observation & audit findings

– Advanced KPIs in place

– 3 years data

– Visibility into contractor performance trends

– Benchmarking contractors against industry averages

– Increasingly granular data capture, e.g., client-specific or project-level stats

– Integrated KPIs, incl. leading & lagging indicators in place

– 3+ years data

– Visibility into contractor performance trends across all hiring clients, all my jobsites, and on my individual projects

– Benchmarking contractors against industry averages and on similar internal projects

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Conclusion

While each business may have its own unique considerations, the Contractor Safety Compliance Management Maturity Model provides an effective framework for assessing the current state of a company’s contractor safety program and taking action to improve it. By cultivating a culture of top-down commitment to improving contractor safety, effectively using technology to drive program efficiencies and consistency, and leveraging data to strategically guide program enhancements, companies can successfully move their contractor safety programs forward.

To learn more about the maturity model or speak with a representative about your contractor safety program, visit veriforce.com or call 800.426.1604.

About Veriforce® Solutions

Veriforce delivers integrated compliance solutions that help companies enhance safety for their workforce and the communities they serve. Our comprehensive safety compliance solution combines VeriSource™ Safety Compliance Management software with valued-added audit and training services to help clients streamline contractor prequalification processes, get a deeper view of their contractors’ safety performance, and drive improvement to safety culture across their contractor workforce.

Veriforce800.426.1604

©2017 Veriforce, LLC. All rights reserved

http://www.veriforce.com

tel:800.426.1604

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