The Client and Its Challenge
This rapidly expanding national restaurant chain wanted to identify ways in which the company could control skyrocketing workers’ compensation costs.

The Risk Consulting Solution
Marsh was retained to help develop a company-wide strategy to reduce workers’ compensation costs and claims. Marsh consultants met with the company’s risk manager and senior management team to discuss specific goals. Then, using workers’ compensation and general liability benchmarking tools, Marsh audited individual restaurants, noting trends in the company’s workers’ compensation claims and processes. Using the gathered data, Marsh conducted loss analyses for all locations and reviewed frequency and severity of on-site injuries. A self-survey, completed by managers at 145 locations, also helped pinpoint the hazards.

Slip and fall injuries and strains from lifting were identified as the most severe loss causes, while burns and cuts were the most frequent. With an overall goal of lowering workers’ compensation costs, Marsh consultants developed several programs to help store managers prevent injuries and positively impact safety. Tools included a slip/fall prevention program; employee safety training videos; information about installation, maintenance, and management of playground equipment; and booster seat safety materials. Marsh also helped develop and implement employee best practices to prevent slips, trips, falls, strains, cuts, and burns.

Additionally, to promote the desired behaviors at the individual store level, Marsh helped the client implement behavior-based safety techniques, such as the use of positive, peer-to-peer reinforcement, as opposed to the traditional punitive techniques, to encourage safe working behaviors. Other safety and prevention programs focused on playground safety guides, pedestrian traffic control signs, ladder safety protocols, and employee procedures in case of an armed robbery.

Marsh consultants led a series of on-site discussions and safety training sessions for restaurant managers. Designed to introduce new employee health and safety tools, these awareness and educational programs included accident prevention programs, standardized accident investigation forms, and hazard communications programs. Consultants also developed a driver safety program for the restaurant’s catering operations and prepared restaurant managers for increased risk management facility visits.

Finally, Marsh helped the client coordinate an insurance carrier for additional loss control services.

Results
As a result of improved work place safety, increased manager awareness and training, and support from the company’s corporate headquarters, the restaurant chain achieved significant cost reductions in its workers’ compensation program. Based on revenue and payroll, the company saved $9-11 million over an eight-year period.