Injuries and occupational hazards in various organizations account for high levels of costs and reduction in profits and revenues (Frenkel, Dufey and Hommel 120). The costs incurred result from compensation of workers for injuries at work and time spent away from work by the injured workers. Therefore, an organization that effectively creates mechanisms to reduce risks minimizes compensation costs and ensures employees spend little time away from work. The realization of this object can be achieved through risk management as demonstrated by Target, Disney and ServiceMaster.
Target Corporation is a retail company that had experienced high levels of compensation claims from its employees. The company devised a mechanism to reduce the claims by creating an effective system that reduced risk and increased workers’ productivity. The company created an electronic form that was custom designed to meet the company’s needs. This form ensures that all the cases that would lead to compensation claims are promptly reported for adequate attention. Once an incident is reported, a nurse who is available throughout is informed and offers assistance to the retail workers on how to administer treatment. In addition, the company ensures that the nurse is empowered to offer assistance through a fax or email, which ensures that employees have a flexible method to obtain help. The organization has also established an internal claims department that deals with cases that have a potential for claims. The electronic form helps the company identify the cases that can be handled by the claims department. In addition, it has sought the assistance of another organization to deal with the cases that its claims department cannot handle. Through the internal and external systems, Target Corporation has increased the scope of its capabilities to reduce the costs associated with claims. The final strategy used by the company is the creation of a return to work program, which helps employees involved in injurious incidents get back quickly. The programs ensure that the employees get the correct match between their capabilities and duties. From the program, the company increases productivity of employees and reduces the time spent away from work.
ServiceMaster is a company that offers an assortment of services such as cleaning, landscaping, pest control, lawn care, disaster recovery and furniture repair. With such activities within its portfolio, the workers are exposed to various risks that may lead to compensation claims. To shield itself from costs that result from employees’ compensation claims, the company conducted a risk audit, which identified the areas of concern for safety issues. The audit provided the company with recommendations that lead to an overhaul it its organizational culture. The company recognized the importance of its employees and decided to focus on their safety as a means to improve performance. The company created a philosophy called the ‘captain of the ship, where managers at all levels are responsible for their employees’ safety. The company has empowered its employees to report when they realize that the workplace is unsafe. Therefore, employees have the right to refuse to work in an environment that is unsafe. An arrangement like this has ensured a reduction in accidents, which translates to reduced compensation claims. Another strategy that the company has used to reduce risk is creating a compensation program for people who have performed excellently in keeping employees safe (Schneider 55). The compensation program creates a culture that recognizes the importance of employees’ safety and motivates them to improve the work environment. The company has also established a continuous audit process that regularly identifies areas that can be improved, performance reporting and alternative risk management strategies.
Disney is an enormous organization with diverse product lines across industries. As such, there is an increased need to monitor its risk management strategies and programs. The company’s success relies on its worldwide reputation, which means that any form of neglect to its employees would ruin the reputation. Therefore, the company has created a top to bottom approach to risk management, which reduces the occurrence of injuries to the employees. Consequently, the company has managed to reduce the costs caused by compensation of injured employees. The executive managers ensure that the risk management program is effectively communicated down the organization channel. The company requires lower level managers to report any incidents that may lead to injuries promptly. The reporting system is linked to the company’s safety management program that ensures that all reported incidents never occur in the future. The company is, therefore, able to build its risk management strategies based on the past incidents while exploring other new risky factors. The second strategy created by the company is developing various technologies to reduce injuries. One the specific strategies include the ‘shoes for crews’ program where the company has created its shoe manufacturing line to reduce falls and slips.
From the analysis, one similarity between the three companies is the creation of risk management programs, which reduces compensation claims and the costs associated with it. On the other hand, each company has other different strategies depending on its contingent situation and line of operation.
Works Cited
Frenkel Michael, Dufey Gunter, & Hommel, Ulrich. Risk Management: Challenge and Opportunity. New York: Springer, 2005. Print.
Schneider, Anderson. Strategic Risk Management Practice: How to Deal Effectively with Major Corporate Exposures. Cambridge: Cambridge University Press, 2010. Print.
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