DEFINITIONS

ROI CALCULATOR

WORKERS' COMPENSATION CLASS CODES

Class codes also called classification codes or workers’ comp classification codes, are three- or four-digit codes that insurance companies use to estimate rates. Codes are based on the risks associated with each type of work an employee performs.

OSHA RECORDABLE INCIDENT RATES

Multiply the total number of OSHA recordable incidents your company had during a certain time frame  by 200,000 (most people calculate their TRIR for a certain year).  Take this answer and divide it by the total number of hours worked by all employees, including owners, during the same exact time frame.

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For example.  You can calculate your TRIR for a certain year, quarter, month or week.  It doesn’t matter.  If you want to calculate your TRIR for the first quarter of 2015.  First add up all the OSHA recordable incidents your company had in the months of January, February and March of 2015.  Let’s say that you had 3 OSHA recordables during those months.  Now you want to multiply this number by 200,000.

3 OSHA recordables X 200,000 = 600,000

Now divide 600,000 by the total number of hours worked by all employees, including the owners, during those same months.  If you have 25 employees then the total number of hours worked would be about 13,000 hours (25 employees X 520 hours per employee).

600,000 / 13,000 = 46.15

In this example your TRIR would equal 46.15 which is very high.

A good TRIR is 3.0 or less.  A perfect TRIR is zero.  Many companies in ISNetworld® will grade your company based on your TRIR score so it is very important that you keep it as low as possible.

LOST TIME INJURIES AND LOST TIME INJURY FREQUENCY RATE

Lost Time Injury – any injury sustained by an employee while on the job that prevents them from being able to perform their job for at least one day/shift.

Lost Time Injury Frequency Rate – the number of lost time injuries that occurred during the reporting period. Most companies choose to calculate LTIFR per 1 million man hours worked.  

Calculating Lost Time Injury Frequency Rate

Measuring your LTIFR is actually easier than you think. The formula is as follows:

([Number of lost time injuries in the reporting period] x 1,000,000) / (Total hours worked in the reporting period).

Now, let’s use an example to further illustrate:

After reviewing and compiling your safety data, you’ve determined that there were six lost time injuries in the past year at your manufacturing company and a total of 2,500,000 hours worked. To calculate your LTIFR, simply plug those numbers into your formula:

(6 x 1,000,000) / 2,500,000

LTIFR = 2.4

And voila! Your company’s LTIFR is 2.4, which means there were 2.4 lost time injuries for every one million man hours worked.  Now that you’ve successfully calculated your LTIFR, you can use that data to benchmark performance and see how you stack up against your industry peers.