2024 Theo Award Winner: True Value Company

True Value Company, a leading hard lines wholesaler with a 75-year history, faced significant challenges in 2020 and 2021 as workers’ compensation claims and costs spiked during the COVID-19 pandemic, as it did for many essential businesses. True Value saw claim frequency rise in 2020 and 2021 compared to pre-pandemic levels.

Recognizing the need for change, True Value brought on new leadership in risk management and environmental health and safety (EHS) in mid-2021. This new team developed a comprehensive strategy focused on driving higher safety standards through innovation, continuous improvement, and a holistic approach to workers’ compensation.

Tackling the Problem

True Value implemented a multi-faceted approach to address its safety challenges. The company initiated ergonomic training and program planning across its network, establishing standard operating procedures and fostering Ergonomic Champions. Partnering with ErgoPlus, True Value rolled out a work readiness system to help associates prepare for their tasks as “industrial athletes.”

To encourage personal ownership of safety, True Value created quarterly safety initiatives. These included the “Focus on the Fix” program, where associates document and resolve unsafe conditions, and a “Safety Peer Recognition” program to reinforce safe behaviors. Monthly safety review meetings became a cornerstone for collaboration, facilitating the sharing of best practices and tracking of safety behaviors.

“Safety has always been an important part of our culture, but these initiatives have really brought it into the spotlight,” said Matt Kula, who was transitioning out of his role as risk manager at the time of publication. “The routine monthly safety calls led by the EHS team have been key in connecting the distribution centers and involving them in claim reviews, which wasn’t always the case before. 

“The monthly calls now include not just our general operations managers and HR, but also frontline supervisors who discuss findings and highlight safety spotlights of employees. This has been crucial in incorporating and sharing practices across the board and fostering connections between the distribution centers.

True Value set annual improvement goals for OSHA Total Recordable Incident Rate and Lost Time Incident Rate, with each site developing specific safety improvement plans. The company also implemented a safety shoe policy requiring OSHA-compliant footwear in warehouse and manufacturing areas.

To enhance oversight and efficiency, True Value moved to quarterly actuarial analysis and expanded participation in claim reviews. The company identified medical provider panels to build relationships for effective treatment and understanding of operations. True Value also conducted an RFP process to select a new TPA partner, CorVel, to provide a holistic approach to managing workers’ compensation claims, including the implementation of nurse triage for immediate intervention and care advice.

Matthew Kula, former Risk Manager, True Value Company

“One thing I’ve learned is to bring all your partners together rather than keeping them separate,” said Kula. “Often, you might work with your TPA, insurer, and broker independently, without involving them in each other’s conversations. However, there are certain discussions where bringing everyone to the table can be beneficial, as it allows for sharing expertise, ideas and experiences.

Kula added, “The great thing about the insurance world is that even if we haven’t encountered a specific situation, it’s likely that someone else has, whether within our industry or in a different one. Our partners can gain knowledge from their diverse clientele and even connect us with their clients who have had similar experiences. 

“I believe that open communication and bringing together all resources at once is crucial. Rather than spending time and effort on back-and-forth conversations and playing telephone, it’s more effective to have everyone come together for a quick meeting to answer all questions. If there are any takeaways or unresolved issues, we can always reconvene later.”

Success to Build On

True Value’s comprehensive approach has yielded significant improvements in risk reduction and safety culture. Workers’ compensation claim frequency decreased in 2022 compared to 2021, with a further impressive reduction in 2023. Total incurred claims costs also saw substantial decreases year over year.

By March 2024, True Value had reduced its open workers’ compensation claim count significantly compared to the end of 2022, resulting in savings on historical ultimate losses. The company’s ergonomics efforts are showing particular promise, with a steep reduction in musculoskeletal disorders compared to the baseline established for the National Safety Council’s MSD Pledge.

Organization: True Value Company * Location: Chicago, IL * Category: Retail & Wholesale * Number of Employees: 3,500

These results have empowered True Value’s associates and generated positive momentum for health, safety, and wellbeing. The company continues to build on its successes while examining areas of opportunity, maintaining a strong commitment to protecting its workforce and fostering a culture of safety excellence.

We have a long history, which is really nice, and we want to spotlight, share, and celebrate it while taking care of our employees,” said Kula. “It’s clear that this is important to everyone, so we want to project, compound, and support that.” &

 

The Theo Award celebrates its inaugural year, honoring 31 workers’ compensation programs for their excellence and service to workers across the nation. To learn more about the award and amazing qualities each winner possesses, visit here.

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