Author: Kaya Stanley, Board Chair and CEO, CRMBC
Did you know that investing $1 in workplace safety can save your businesses $4 to $6 in costs associated with workplace injuries? At CRMBC, in partnership with The PATH Alliance, we recognize the critical importance of workplace safety. In the restaurant industry, where margins are tight and risks are high, these savings are not just beneficial but essential. With medical costs now accounting for about 60% of workers’ compensation claim costs and a notable increase in the severity and duration of claims, it is clear that restaurants must prioritize comprehensive safety and loss control programs to stay profitable and secure.
Setting the Table:
Why Restaurants Should Focus on Loss Prevention
Ensuring a safe working environment is not just a regulatory requirement under CCR §15486.1 but also a strategic business imperative. The increasing severity and duration of workers’ compensation claims and rising medical costs underscore the importance of proactive safety measures. By investing in comprehensive safety and loss control programs, restaurants can mitigate risks, reduce the frequency and severity of workplace injuries, and ultimately save on costs associated with workers’ compensation claims. Here’s why restaurant owners should prioritize this investment:
1. Reducing Workers’ Compensation Costs
CRMBC’s Safety and Loss Control Program’s three-tier structure significantly lowers the incidence of workplace injuries, leading to reduced workers’ compensation claims. This is crucial for restaurants, where physical tasks and fast-paced environments increase injury risks. By implementing comprehensive safety protocols, businesses can proactively address potential hazards, reducing the frequency and severity of accidents. This not only minimizes direct costs associated with medical treatments and disability benefits but also decreases indirect costs like lost productivity and legal fees.
2. Lowering Insurance Premiums
Insurance companies often offer lower premiums to businesses with robust safety programs. CRMBC’s tailored safety solutions and comprehensive risk management strategies reduce the risk of claims. When a restaurant demonstrates a commitment to safety through comprehensive risk management and loss control measures, insurers view it as a lower-risk client. This perception leads to more favorable insurance rates, as the likelihood of costly claims is minimized. CRMBC’s Safety and Loss Control Program helps restaurants develop and implement these safety measures, ensuring that their insurance premiums reflect their reduced risk profile and commitment to maintaining a safe working environment.
3. Decreasing Turnover and Training Costs
A safe working environment contributes to higher employee satisfaction and retention, reducing turnover rates and saving costs associated with hiring and training new employees. When employees feel secure at their workplace, they are more likely to stay, reducing the need for constant recruitment and training. CRMBC’s tailored safety solutions help create a safer, more stable work environment. This stability boosts employee morale and translates into significant cost savings for restaurants, as they spend less on replacing and training staff.
4. Minimizing Property and Inventory Losses
Proper loss control measures can significantly reduce losses from theft, spoilage, and damage, common issues in the restaurant industry. Implementing effective strategies such as inventory tracking, surveillance systems, and stringent access controls can help mitigate these risks. CRMBC’s comprehensive risk management services provide tailored solutions to help restaurants safeguard their assets. By minimizing property and inventory losses, restaurants can protect their bottom line, increase profit margins, and ensure a smoother, more efficient operation.
5. Enhancing Operational Efficiency
Safety and loss control programs streamline operations by reducing disruptions caused by accidents and theft, leading to more consistent service and improved productivity. Employees who are trained in safety protocols and loss prevention techniques can perform their tasks more efficiently and with fewer interruptions. CRMBC’s Safety and Loss Control Program focuses on creating a sustainable safety culture within each member’s organization. This approach minimizes downtime and ensures a smoother workflow, ultimately enhancing the restaurant’s overall operational efficiency.
Investing in safety and loss control is not only a regulatory obligation but also a strategic decision that can lead to substantial financial savings and operational efficiencies. By partnering with CRMBC, restaurant owners can leverage our comprehensive Safety and Loss Control Program to create a safer, more productive work environment, ultimately driving long-term success and sustainability in the competitive restaurant industry.
Click here for more information on how CRMBC can help you enhance your safety and loss control measures.
Kaya Stanley is an attorney, published author, business owner, and highly sought-after strategic turnaround expert. Ms. Stanley serves as CEO and Chairman of the Board for CRMBC, the largest restaurant workers’ compensation self-insured group in California, and she is the Licensee for TEDxReno, an independently organized TEDx Event.
Throughout her 22 years of practicing law, Ms. Stanley has served as outside counsel for Wal-Mart and Home Depot. She was voted one of the country’s “Top 25 OZ Attorneys” by Opportunity Zone Magazine and published a best-selling book called “The Employer’s Guide to Obamacare.” Before that, she earned her master’s degree in social work and public policy, after which she worked with at-risk girls in Detroit and lobbied for women and families.
