The Future of Workplace Safety Technology Is Now

Study finds industries such as manufacturing, logistics and warehousing are prime candidates to benefit from safety technologies

Contributor: NCCI, The National Council on Compensation Insurance

Ergonomic-related injuries, especially involving the lower back, are a primary focus of safety technology. © dusanpetkovic1 – stock.adobe.com

This article is based on NCCI’s 3-part series on “The Future of Workplace Safety Technology Is Now,”¹ and the AIS 2024 presentation on workplace safety.²

The evolving workplace and the role of workers are top of mind for workers compensation stakeholders. In our ongoing dialogue with workers compensation stakeholders across the country, NCCI is often asked about the status of safety technology being utilized in the workplace. While questions continue to emerge as to whether safety technologies may be game changers for workers compensation, one thing is clear — the best outcome for an injury is for it never to occur.

To gain insights as to the perspectives of various stakeholders that may be involved in the use of safety technologies, NCCI separately engaged with insurers, safety technology providers, and employers. The conversations explored a range of advanced safety technologies — like wearables, AI/computer vision, the Internet of Things (IoT), and software applications — all at various stages of implementation.

Across these discussions, it was evident that the relationship between the employer, technology provider, and the workers compensation insurer is critical to the success of implementing a safety technology program. Several observations consistently came up across each of the groups.

CULTURE AND CHANGE MANAGEMENT

The insurers, safety technology providers, and employers interviewed all noted that a culture of safety and trust is critical to successfully implementing the sustainable use of safety technologies. Implementation of these technologies in the workplace was often mentioned as requiring support and buy-in from both employers and employees. As one technology provider noted, “The most challenging part is to get everyone aligned in order to make the change.”

Those interviewed expressed that employee privacy concerns are an ongoing obstacle to implementation. There may be cases where workers may not trust what employers are doing with the data collected or do not fully understand the purpose of the product. Education and transparency about data usage and the “why” behind the technology may in some cases help to alleviate employee concerns. The technology’s purpose, according to one employer, is to “ensure employees go home safely every night.”

NAVIGATING COST CONCERNS

Workers compensation insurers and safety technology providers noted that the affordability of the product was a potential obstacle to widespread implementation. The data provided by the new technologies is vast and analyzing it thoroughly can be challenging. The insurers we interviewed noted that some safety technology vendors provide free trials, license packages and other utilization incentives.

Two out of the three employers interviewed did not believe that cost was an important obstacle. One employer shared that if they could prevent one back strain then the technology “paid for itself.” Another employer mentioned several benefits that offset costs, including eliminating the need for a safety manager at every location. This employer also indicated that the cost of safety technology could decrease in the future due to increased volume of usage and improved system learning of individual operations.

© kelvn – stock.adobe.com

RISK MINIMIZATION

NCCI’s Injury Characteristics and Insights (ncci.com)³ lists the top three body part injuries involving lost-time claims are lower back, knee(s), and shoulder(s). According to NCCI data, lower-back injuries rank first in lost-time claim counts (roughly 12%), third in claim dollars (roughly 11%), and “middle of the pack” in average severity, which is about $40,000 per claim.

Several safety technology providers noted that ergonomic-related injuries tend to be a primary focus, especially musculoskeletal injuries for the lower back and wrist, with the potential to broaden the applications to the shoulder and other body systems.

Industries such as manufacturing, logistics and warehousing were identified as prime candidates to benefit from safety technologies. While currently more prevalent in traditional four-walled environments, we heard that technological advancements are spreading and growing to other workspaces and industries.

LEVERAGING DATA

Data from technologies such as wearables, AI cameras and software applications were noted as having potential to help identify issues and opportunities. In this use case, employers have visibility over which work processes are causing unnecessary strain on the body and then can identify improvements.

One employer indicated a concern about not knowing how to interpret or use the data collected. After initial training, the employer indicated that to make the pilot program effective they would meet regularly with the technology provider and with their workers compensation insurer to review the data.

Another employer reported promising results, including over 335 “good catches” (a more positive term than “near misses”), mitigating 82% of potential accidents. From 2021–2023, this same employer saw workers compensation costs reduced by 60%.

It remains to be seen whether safety technologies are “game changers” for workers compensation, but as one employer noted, “People who care about themselves and care about the culture are the game changers.” As these technologies continue to advance and evolve, it is the efforts from all stakeholders that will help shape the future of workplace safety. WMHS

With over 100 years of experience, NCCI serves as the nation’s most comprehensive source for workers compensation data, insights, and solutions. NCCI’s mission is to foster a healthy workers compensation system through its role as a licensed rating, advisory, and statistical organization. NCCI’s thought leaders analyze workplace trends and deliver insights to empower informed decision making. Learn more at https://www.ncci.com/.