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By
ERNIE LEBEL Vice President, “ The totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought characteristic of a community or population.” A Corporation or an employer, for these purposes, is anywhere a group of employees are expected to work, so it may be a one or two person business in Lubec or a collection of several thousand people in multi-disciplines, with elaborate diversity in Portland. Workers’ Compensation needs no definition but it is valuable to remind ourselves from time to time of the original purpose of Workers’ Compensation and the ongoing value of such a program. The real purpose and value of a Workers’ Compensation System is to insure that employees who are injured at work get their medical expenses paid for; they continue to get a major portion of lost wages and have a job to go back to when they are able to. Pretty simple and necessary system – somehow it expands way beyond its original purpose and on-going need. But for our purposes we will stick to the original purpose and on-going need. “Things aren’t the same since the old man retired.” “It is really political around here, it’s every man for himself And that is how cultures are made. The best way to understand differing cultures and to connect those various cultures to the cost of Workers’ Compensation is to look at examples of cultures and understand how those specific cultures affect the cost of Workers’ Compensation. The Elements of a Corporate Culture: Products: What is it the company makes, sells, or services. Different products tend to influence what the culture might have to be to make, promote, or deliver the product. Competition: Sometimes the external forces that affect the business have as much to do with the culture as the internal forces. For instance, a business whose competition is aggressive, ruthless and reckless will force a company to behave in a similar manner to be competitive. Ever hear the expression, “you’re only as good as your worst competitor”. Customers: Most businesses need customers and will often “grow” a culture that is conducive to their customers’ desires even though it may not be the culture that the ownership or management is comfortable with. Companies often “abuse” their employees in the best interest of serving their customers at all cost. Technology: More and more technology becomes a bigger part of who we are as organizations and will influence the cultural development and the individuals within organizations. Work spaces – communications – and how we treat our employees is influenced by technology. Government: Industries, businesses, or agencies that depend on Government business or is highly regulated will have a culture that insures they are consistent with the Government’s expectations. The internal culture of nuclear power plants is a product of the high need for government compliance. All of the above elements are “outside influences” yet are very dominant in influencing the internal culture for most organizations. Internal influences may outweigh the externals – if they are strategically placed and a major influence within the company -otherwise the external influences win. The ways in which companies carry out activities make up their culture. These activities include: research, selling, inventories, market development, cost management, etc. A couple of examples follow: Example: A company that depends on their ability to develop, market and deliver an undifferentiated product (a hammer, photocopy paper, pencils, rulers, etc.) tend to have one type of culture - - work hard, play hard and “sales” is everything. Decisions are made rapidly and mistakes are common. Example: A Research and Development Company tends to cultivate a slower process -waiting years to know if their product is successful – they tend to make sure decisions are carefully thought through and do not encourage risk taking from it’s employees. The penalty for mistakes is huge. A faulty antenna 400 feet in the air is an expensive problem to fix. The driving forces in many organizations are the values of the organization. Many companies now think about their values and arrange them neatly on a piece of paper or a plaque and post the values clearly so everyone can see them. With or without this effort – every organization has values. In the book Corporate Cultures by Terrence Deal and Allan Kennedy, values are described this way: “Basic concepts and beliefs of an organization - the heart of the organization.” So if an organization believes and operates as though cost control and limited spending are the only important values, then that becomes it’s core values. Sometimes the values are a wonderful thing – however, sometimes they stunt growth and create unfair employee relations that are manifested in high activity in Workers’ Compensation. Cultures are also created, developed and maintained by heroes within an organization. These people personify the culture. They are the role models, create the vision, and are the provider of memorable moments that have formed the organization. Look at GE from it’s beginning – Thomas Edison was an inventor and an achiever…to modern times when Jack Welch cultivated the environment within GE today. Closer to home in a company I’ve been involved with as part of a Workers’ Compensation Group Trust, one person was the absolute hindrance to any success with their workers’ compensation program. She viewed every accident victim as a liar and malingerer who was milking the system. With her influence the company refused to provide return to work programs and preferred lost workdays to limited work schedules. On the threat of being thrown out of the group, the individual was removed from her position, the company complied to sensible and proactive injured worker management and within a year the company received the “Most Improved” award in the 28-company group. One individual personified the culture that drove workers’ compensation costs out of control for this company. Deal and Kennedy’s book on Corporate Cultures also points to certain Rites and Rituals within each organization. They are described as systematic and programmed routines. Behaviors that show employees what is expected of them. In their ceremonies they provide visible examples of what the company stands for. Through the company’s cultural network they formally or informally communicate the issues that are important and the news is usually weighted towards those issues. When a company’s values are about “bottom line” and profits at all cost – the actions surrounding workers’ compensation are usually about the cost of the benefit and the negative impact excessive cost will have on the employees. Companies that have cultivated their individual cultures have an edge. They are known-by reputation – you can almost visualize their work place when you hear their names. Maine companies like: CIANBRO – HANCOCK LUMBER – BIW – TOM’S OF MAINE, LL Bean, etc. They have stories to tell – they stand for something, good or bad. Many companies claim their primary value is “people are our greatest asset” but they manage them with computer reports, programs, and policies. So employees interpret that value as a stated value and the real values are demonstrated by the company’s actions and by subtle clues. Strong Cultures and Workers’ Compensation Cost: One: Cultures spell out the informal rules that describe how people are to behave most of the time. In a strong culture people know exactly what is expected of them. The Marine Corp has a strong culture – every Marine knows exactly what is expected of him. In a weak culture people are trying to figure out the rules and how to play the game. A company whose values are employee centered and their culture demonstrates a genuine caring about employee health and safety will demonstrate it from the beginning of the relationship. The first action is an employee physical assessment geared towards making sure the employee is not placed in a position that will hurt him/her. The new employee orientation includes work hardening and proper training. Equipment is provided that is proper and safe to use. Employees are encouraged to report all injuries, no matter how minor, and when an employee suffers a work related injury they are treated with dignity while all the company’s resources are engaged in making sure the individual is taken care of and other employees are protected from similar injuries. Two: A strong culture enables people to feel better about themselves and allows them to connect with the organization. They become engaged and eager to be a part of something. The effort should be to get employees to develop a pride in where and for whom they work. No matter what age or motivation – everyone wants to play for a winner. Employees will care about their own health and safety if the company encourages and rewards them to do so. Behavior that is recognized and rewarded will usually be repeated. Companies who want to reduce Workers’ Compensation cost should pay as much attention to the culture as they do to removing unsafe conditions. A human resource audit may be much more worthwhile in determining the real reason for high cost of workers’ compensation then a safety audit. Converting of cultures is not easy and often will require all of a company's resources. Not converting a “bad” culture is much more costly and time consuming then is realized. Companies often look at turnover rates and work diligently to improve them – without upsetting the current culture. Often the only answer is to convert the culture. Corporate Cultures – The Rites and Rituals of Corporate Life by Terrence Deal and Allan Kennedy have this to say about weak cultures: Symptoms of a culture in trouble: · Inward focus – companies are not paying attention to what is going on in the real world. Workers’ Compensation cost is only one product of corporate cultures, but one that is seldom given enough attention – until it is too late. |
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