With one in five of its employees being injured on the job and workers' compensation for nearly 5,000 claims accounting for a whopping 65 percent of the company's record-high cost of risk of $117 million in 2002, a new executive management team at ServiceMaster–facing a "significant moral and financial imperative," according to its risk manager–realized there was no choice but to launch a cultural revolution, backed by a multifaceted loss control and safety initiative.
"The light bulb finally went off for us as we looked at how we were living the foundation of our company objectives," said David Hopps, vice president of risk management operations, environment, health and safety. "How could we say we were a top-notch, preferred service employer if that many of our employees were getting injured on the job?"
The new emphasis on risk management has paid off, with total cost of risk down 41 percent since 2003 and the frequency of work-related claims down by one-third.
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