What is EMR in Construction? (And How Construction Safety Affects Your Bottom line)

ever had to wonder what emr is in construction?

emr is a small construction safety metric hidden in your company profile that has a bigger impact on your bottom line than you think.

Here’s what you need to know.

what is emr in construction?

emr stands for Experience Modifier Rate, a number used to measure the safety metrics of a construction company

emr stands for experience modifier rate. it is a number used by insurance companies to determine the likelihood that a business will experience workers’ compensation claims. A high EMR will increase premiums, while a low score helps keep your insurance rates low.

But that’s not the only impact emr has on your bottom line. it’s the only consistently quantified safety measure in the workplace, and because it’s factored into bids by both government and private owners, it can have a profound impact on all levels of your recruiting business.

how does emr work?

To calculate your EMR, insurance companies start with data reported to the National Council on Compensation Insurance and compare their data to the industry average.

An EMR of 1.0 indicates that your claims history over the past five years is average for a company of your size in your industry. a score above 1.0 indicates that you have a more expensive than average claims history, and a score below 1.0 indicates that your history shows a lower risk of costly claims.

claims history data takes into account the number of incidents, the type of incident (for example, medical or lost time), and the amount paid for each incident.

why emr is the only “peer” the industry has

The construction industry lacks a comprehensive set of standard benchmarks for comparing quality and performance between companies. When it comes to bidding on projects, homeowners must rely on a variety of subjective measures to evaluate potential contractors.

When it comes to measuring the quality, timeliness, general work practices of a contractor, there is no real measurable standard in the industry (although construction software is changing that).

but for safety, that measurable standard already exists. that’s emr, and because emr is the only quantitative benchmark that’s consistent across the industry, its impacts are amplified in ways you probably don’t realize.

5 ways construction safety affects your bottom line

a bad EMR has a direct impact on the results of your company

Because EMR is calculated by and for the insurance industry, it has a direct and measurable impact on the insurance premiums you pay. But that’s not the only way EMR impacts your bottom line.

here are 5 ways a bad one is slowly killing you:

1. you’re missing out on lucrative government contracts

All government contracts require a maximum EMR before you can bid. Even if you reach the minimum emr, you can give preferential treatment to a competitor with a lower score.

2. you’re missing out on lucrative private contracts

Following the government model, more and more private contracts also require a maximum EMR. Private contracts are even more likely than government contracts to give preferential treatment to those with lower EMRs.

3. you’re losing contracts because of bid protests

Even if you meet the EMR maximum and are selected as the preferred contractor on a government project, you can still lose the contract if someone files a bid protest. A contractor with a better safety record may protest that his offer received an unfair preference in light of his high EMR…and if successful, his contract may be removed.

4. your competitors are receiving preferential treatment

You may be losing contracts where yours was the lowest bid because of your emr. worse yet, your competitors can quote higher prices but still win because of your excellent emr.

5. you are spending too much on preventable security incidents

Your emr is not just a number in an insurance file. represents real people who are injured in their workplaces. if your number is higher than average, that means you’re not adequately protecting your workers.

In addition to the huge human cost of workplace injuries, it costs you time and money that your top-scoring competitors aren’t spending.

how to improve your emr

improve your company’s emr by improving your safety standards with new construction technology

To improve your emr, improve your security practices.

Construction is an inherently dangerous business, but employers can do a lot to increase worker safety, especially with today’s technology.

the single most important thing gcs can do to improve your emr is to develop connected workflows within construction safety applications that ensure all team members stay informed and up-to-date on safety issues as well as new developments. locations and timing of major security-related events. issues such as large equipment in use and fall hazards.

Another way technology can help improve EMR is by reinforcing safety practices among the crew. it is easy to make security policies, but much more difficult to enforce them. New construction safety technology like smartvid.io and triax wearables are changing the game and making it easier to identify and fix safety issues before they become incidents.