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2016 Teddy Award Winner

The Family That’s Safe Together

An unwavering commitment to zero lost time is just one way that Harder Mechanical Contractors protects its workers.
By: | November 2, 2016 • 6 min read

From a safety and workers’ comp perspective, the construction industry is one of the most daunting of all industries. The numbers say it best. One in 10 construction workers is injured every year, according to OSHA, and over the course of a 45-year career, a construction worker has a 1 in 200 chance of dying. Sobering odds.

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One company beating those odds is Harder Mechanical Contractors, a 2016 Teddy Award winner.

Portland, Ore.-based Harder Mechanical specializes in process piping fabrication and installation, equipment installation, commercial HVAC piping and plumbing, instrumentation and controls, civil and poured-in-place concrete work and structural steel erection services.

The size of the company’s workforce varies, ranging from around 2,000 to more than 3,000 employees, depending upon the number of projects the company has in the works. Having that kind of revolving-door operation can be a major stumbling block for a safety program. But it has actually made the company double down on its efforts to create a safety culture that can thrive even as workers come and go.

“It’s a never-ending battle,” said Jennifer Massey, the company’s corporate director of safety and health and claims management. “Every day we have to reinforce it.”

Jennifer Massey, corporate director of safety and health and claims management, Harder Mechanical Contractors

Jennifer Massey, corporate director of safety and health and claims management, Harder Mechanical Contractors

It’s a battle they’re winning. The company’s injury frequency plunged from 71 to 18 in the past four years, and its total incurred cost per claim dropped from $21,322 in 2011 to $683 in 2015.

“We have a team that is aligned and focused to prevent injuries at the jobsite,” said company President Dustin Harder. “Our senior leaders are trained to support our crews and a lot of attention is put on the boots on the ground. Our field foremen are the first line of defense to preventing injuries and properly managing the ones that do occur.”

“Every person in the company, from the president to the apprentice, is deeply committed to the goal of achieving zero-injuries,” agreed the company’s general counsel and risk manager, Bill Murphy.

Results like that take diligence. Massey’s team is constantly on top of its leading and lagging indicators, working to spot any sign that the company’s safety efforts may need a course-correct.

When the team became concerned that workers were suffering hand injuries despite wearing gloves, it set out to find out why.

“The problem was, we just weren’t helping them to understand that they needed to wear the right gloves for the job they were doing, or to stop and change [gloves] as the conditions change,” said Massey.

With worker input, the team created a colorful quick-reference 4-by-8-foot glove matrix banner, matching images of glove types to specific jobs and tasks.

“We don’t want to just impose something upon the people out there in the field — they’re the ones turning the wrenches, and know how to do their jobs safely. We need to get their input so they own it,” she said.

The outcome was even better than expected — a rapid 60 percent reduction in hand injuries.

Getting to Zero

Harder Mechanical’s lost-time accident rate is enviable: Zero. The company just reached a remarkable 16 million man hours without a lost-time accident.

“That one is actually our easiest situation to deal with,” said Massey, well aware of how surprising that sounds. The key, she said, is an environment of trust. Workers readily partner with the company to make zero lost-time happen.

Dustin Harder, president, Harder Mechanical Contractors

Dustin Harder, president, Harder Mechanical Contractors

Employee pay scales are negotiated under collective bargaining agreements for each state jurisdiction and craft. If somebody is off work and getting TTD payments, said Massey, “they are severely affected” in terms of salary, health and welfare benefits for their families, and pension credit hours.

That’s a heavy burden to bear. Harder Mechanical makes sure that every employee understands there’s another option.

“We effectively communicate with them that … you can partner with us, and get your doctor involved, and all of us come together and agree that we’re going to keep you working no matter what. … Which would you choose if you were an injured worker?”

In the short-term, Massey’s team provides online training platforms. Recovering workers are brought to a warehouse location, where it’s easiest to accommodate restrictions safely. Treating physicians are highly cooperative because they understand that workers’ recoveries will not be compromised, and are inclined to follow their patients’ wishes.

“I tell [workers], you have to advocate for yourself and tell your doctor, ‘No, this is what I am doing; this is how the company and I are partnering.’ ”

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In 2014, a steamfitter nearing retirement suffered a crushed leg, and nearly lost his foot. Despite multiple surgeries, he was able to utilize the online training platforms until he could return to modified duty at the warehouse.

The employee couldn’t return to his job in the same capacity, so Massey’s team brought in a vocational specialist to help design a permanent job description for him.

With assistance from the state’s preferred worker program, Harder provided numerous accommodations, including special shoes, rolling stools that allow him to rest his leg, a motorized scooter and a golf cart which he uses to travel between buildings.

“We don’t want to just impose something upon the people out there in the field — they’re the ones turning the wrenches, and know how to do their jobs safely. We need to get their input so they own it.” — Jennifer Massey, corporate director of safety and health and claims management, Harder Mechanical Contractors

Throughout the entire journey, he never had to worry about whether he’d be able to provide for his family. That allowed him to focus on his recovery. Eliminating that anxiety has a major impact on outcomes, Massey said.

“Our employees are not affected adversely, financially, so they’re focusing on getting better because they’re not stressed out about how they’re going to pay their bills, or how they’re going to have medical benefits for their family,” she said.

The Human Connection

One important feature of Harder Mechanical’s safety culture is how the company communicates with employees, reminding them why safety matters in the first place, especially in their lives outside of work.

 Bill Murphy, general counsel and risk manager, Harder Mechanical Contractors

Bill Murphy, general counsel and risk manager, Harder Mechanical Contractors

That comes into play with safety commitment letters — letters that workers are asked to write to their families, making a personal promise to work safely.

It’s a tool so powerful that the company only uses it when circumstances warrant a wake-up call.

“We use it when we feel like we’re definitely trending the wrong way and we have to take prompt corrective action to turn the train around before something happens,”  Massey said.

The same principle is applied in a lighter fashion in the company’s newsletter. That features a retiree profile in each issue that details the joys of a retirement they worked so hard for.

For Massey, getting employees safely to those golden years is personal.

“Coming up through, with my dad in the shipyard, [I knew] a lot of my dad’s colleagues who passed away from asbestosis, or they were totally broken down … their quality of life was not what it should be. … People who work hard, they deserve to enjoy the rest of their lives after working.”

Massey said the commitment to protecting every Harder Mechanical employee runs from the top down.

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“For me safety is a value that we will never sacrifice,” said Harder. “I have worked personally with many of the guys within our company; they are an extension of my family, the Harder family. If one of them were to get hurt it’s like a family member gets hurt.”

“The company’s message and safety programs are focused on every worker being able to go home to their families at night in the same condition as when they left for work in the morning,” said Murphy. “I have always been impressed with the company’s consistent approach in all aspects of its business:  ‘Do the right thing.’ ” &

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Read more about the 2016 Teddy Award winners:

target-150x150Bringing Focus to Broad Challenges: Target brings home a 2016 Teddy Award for serving as an advocate for its workers, pre- and post-injury, across each of its many operations.

 

hrt-150x150The Road to Success: Accountability and collaboration turned Hampton Roads Transit’s legacy workers’ compensation program into a triumph.

 

excela-150x150Improve the Well-Being of Every Life: Excela Health changed the way it treated injuries and took a proactive approach to safety, drastically reducing workers’ comp claims and costs.

 

harder-150x150The Family That’s Safe Together: An unwavering commitment to zero lost time is just one way that Harder Mechanical Contractors protects the lives and livelihoods of its workers.

 

More coverage of the 2016 Teddy Awards:

Recognizing Excellence: The judges of the 2016 Teddy Awards reflect on what they learned, and on the value of awards programs in the workers’ comp space.

Fit for Duty: 2013 Teddy Winner Miami-Dade County Public Schools is managing comorbid risk factors by getting employees excited about healthy living.

Saving Time and Money: Applying Lean Six Sigma to its workers’ comp processes earned Atlantic Health a Teddy Award Honorable Mention.

Caring for the Caregivers: Adventist Health Central Valley Network is achieving stellar results by targeting its toughest challenges.

Advocating for Injured Workers: By helping employees navigate through the workers’ comp system, Cottage Health decreased lost work days by 80 percent.

A Matter of Trust: St. Luke’s workers’ comp program is built upon relationships and a commitment to care for those who care for patients.

Keeping the Results Flowing: R&I recognizes the Metropolitan Water Reclamation District of Greater Chicago for a commonsense approach that’s netting continuous improvement.

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Cyber Resilience

No, Seriously. You Need a Comprehensive Cyber Incident Response Plan Before It’s Too Late.

Awareness of cyber risk is increasing, but some companies may be neglecting to prepare adequate response plans that could save them millions. 
By: | June 1, 2018 • 7 min read

To minimize the financial and reputational damage from a cyber attack, it is absolutely critical that businesses have a cyber incident response plan.

“Sadly, not all yet do,” said David Legassick, head of life sciences, tech and cyber, CNA Hardy.

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In the event of a breach, a company must be able to quickly identify and contain the problem, assess the level of impact, communicate internally and externally, recover where possible any lost data or functionality needed to resume business operations and act quickly to manage potential reputational risk.

This can only be achieved with help from the right external experts and the design and practice of a well-honed internal response.

The first step a company must take, said Legassick, is to understand its cyber exposures through asset identification, classification, risk assessment and protection measures, both technological and human.

According to Raf Sanchez, international breach response manager, Beazley, cyber-response plans should be flexible and applicable to a wide range of incidents, “not just a list of consecutive steps.”

They also should bring together key stakeholders and specify end goals.

Jason J. Hogg, CEO, Aon Cyber Solutions

With bad actors becoming increasingly sophisticated and often acting in groups, attack vectors can hit companies from multiple angles simultaneously, meaning a holistic approach is essential, agreed Jason J. Hogg, CEO, Aon Cyber Solutions.

“Collaboration is key — you have to take silos down and work in a cross-functional manner.”

This means assembling a response team including individuals from IT, legal, operations, risk management, HR, finance and the board — each of whom must be well drilled in their responsibilities in the event of a breach.

“You can’t pick your players on the day of the game,” said Hogg. “Response times are critical, so speed and timing are of the essence. You should also have a very clear communication plan to keep the CEO and board of directors informed of recommended courses of action and timing expectations.”

People on the incident response team must have sufficient technical skills and access to critical third parties to be able to make decisions and move to contain incidents fast. Knowledge of the company’s data and network topology is also key, said Legassick.

“Perhaps most important of all,” he added, “is to capture in detail how, when, where and why an incident occurred so there is a feedback loop that ensures each threat makes the cyber defense stronger.”

Cyber insurance can play a key role by providing a range of experts such as forensic analysts to help manage a cyber breach quickly and effectively (as well as PR and legal help). However, the learning process should begin before a breach occurs.

Practice Makes Perfect

“Any incident response plan is only as strong as the practice that goes into it,” explained Mike Peters, vice president, IT, RIMS — who also conducts stress testing through his firm Sentinel Cyber Defense Advisors.

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Unless companies have an ethical hacker or certified information security officer on board who can conduct sophisticated simulated attacks, Peters recommended they hire third-party experts to test their networks for weaknesses, remediate these issues and retest again for vulnerabilities that haven’t been patched or have newly appeared.

“You need to plan for every type of threat that’s out there,” he added.

Hogg agreed that bringing third parties in to conduct tests brings “fresh thinking, best practice and cross-pollination of learnings from testing plans across a multitude of industries and enterprises.”

“Collaboration is key — you have to take silos down and work in a cross-functional manner.” — Jason J. Hogg, CEO, Aon Cyber Solutions

Legassick added that companies should test their plans at least annually, updating procedures whenever there is a significant change in business activity, technology or location.

“As companies expand, cyber security is not always front of mind, but new operations and territories all expose a company to new risks.”

For smaller companies that might not have the resources or the expertise to develop an internal cyber response plan from whole cloth, some carriers offer their own cyber risk resources online.

Evan Fenaroli, an underwriting product manager with the Philadelphia Insurance Companies (PHLY), said his company hosts an eRiskHub, which gives PHLY clients a place to start looking for cyber event response answers.

That includes access to a pool of attorneys who can guide company executives in creating a plan.

“It’s something at the highest level that needs to be a priority,” Fenaroli said. For those just getting started, Fenaroli provided a checklist for consideration:

  • Purchase cyber insurance, read the policy and understand its notice requirements.
  • Work with an attorney to develop a cyber event response plan that you can customize to your business.
  • Identify stakeholders within the company who will own the plan and its execution.
  • Find outside forensics experts that the company can call in an emergency.
  • Identify a public relations expert who can be called in the case of an event that could be leaked to the press or otherwise become newsworthy.

“When all of these things fall into place, the outcome is far better in that there isn’t a panic,” said Fenaroli, who, like others, recommends the plan be tested at least annually.

Cyber’s Physical Threat

With the digital and physical worlds converging due to the rise of the Internet of Things, Hogg reminded companies: “You can’t just test in the virtual world — testing physical end-point security is critical too.”

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How that testing is communicated to underwriters should also be a key focus, said Rich DePiero, head of cyber, North America, Swiss Re Corporate Solutions.

Don’t just report on what went well; it’s far more believable for an underwriter to hear what didn’t go well, he said.

“If I hear a client say it is perfect and then I look at some of the results of the responses to breaches last year, there is a disconnect. Help us understand what you learned and what you worked out. You want things to fail during these incident response tests, because that is how we learn,” he explained.

“Bringing in these outside firms, detailing what they learned and defining roles and responsibilities in the event of an incident is really the best practice, and we are seeing more and more companies do that.”

Support from the Board

Good cyber protection is built around a combination of process, technology, learning and people. While not every cyber incident needs to be reported to the boardroom, senior management has a key role in creating a culture of planning and risk awareness.

David Legassick, head of life sciences, tech and cyber, CNA Hardy

“Cyber is a boardroom risk. If it is not taken seriously at boardroom level, you are more than likely to suffer a network breach,” Legassick said.

However, getting board buy-in or buy-in from the C-suite is not always easy.

“C-suite executives often put off testing crisis plans as they get in the way of the day job. The irony here is obvious given how disruptive an incident can be,” said Sanchez.

“The C-suite must demonstrate its support for incident response planning and that it expects staff at all levels of the organization to play their part in recovering from serious incidents.”

“What these people need from the board is support,” said Jill Salmon, New York-based vice president, head of cyber/tech/MPL, Berkshire Hathaway Specialty Insurance.

“I don’t know that the information security folks are looking for direction from the board as much as they are looking for support from a resources standpoint and a visibility standpoint.

“They’ve got to be aware of what they need and they need to have the money to be able to build it up to that level,” she said.

Without that support, according to Legassick, failure to empower and encourage the IT team to manage cyber threats holistically through integration with the rest of the organization, particularly risk managers, becomes a common mistake.

He also warned that “blame culture” can prevent staff from escalating problems to management in a timely manner.

Collaboration and Communication

Given that cyber incident response truly is a team effort, it is therefore essential that a culture of collaboration, preparation and practice is embedded from the top down.

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One of the biggest tripping points for companies — and an area that has done the most damage from a reputational perspective — is in how quickly and effectively the company communicates to the public in the aftermath of a cyber event.

Salmon said of all the cyber incident response plans she has seen, the companies that have impressed her most are those that have written mock press releases and rehearsed how they are going to respond to the media in the aftermath of an event.

“We have seen so many companies trip up in that regard,” she said. “There have been examples of companies taking too long and then not explaining why it took them so long. It’s like any other crisis — the way that you are communicating it to the public is really important.” &

Antony Ireland is a London-based financial journalist. He can be reached at [email protected] Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]