5 minute read
CULTURE BEATS COMPLIANCE
CULTURE BEATS COMPLIANCE
BY MARK TROXELL, SENIOR VICE PRESIDENT & JEFFREY SPATZ, VICE PRESIDENT GRAHAM COMPANY
Twentieth century Spanish philosopher José Ortega y Gasset said, “Tell me what you pay attention to and I will tell you who you are.” Whether personally or professionally, the quote seems to strike a chord. So what about your company? What are you paying attention to? Are you chasing culture or compliance? Is your focus on numbers or people?
While the choice is not an either/or, contractors should be asking the question and taking a look at the direction of their attention and efforts. Of course, we must comply with regulatory mandates. But is that enough to ensure that our employees return home to their loved ones at the end of every shift? In the construction industry, the answer is a resounding “no.”
Construction is a risky environment. What’s considered normal in today’s construction industry—including unrealistic schedules and designs that push the boundaries of constructability—was less common in decades past. We’ve adjusted our expectations to fit the new normal, yet we seem wedded to the same focus on compliance. Today’s challenges and complexities require more than mere compliance. Even OSHA officials remind us that OSHA regulations are the minimum, and they encourage employers to structure their safety and health programs to aim higher than these minimum standards. We agree with OSHA’s point—an employer can be fully compliant with OSHA regulations while their employees are at risk of life and limb.
Studies seem to support the benefits of focusing on a healthy company culture instead of obsessing over compliance. A study by the National Safety Council found that companies with a strong safety culture had an advantage over companies without a strong safety culture. This advantage included:
• 54% lower injury rate
• 3.5 times higher productivity rate
• 20% lower workers' compensation costs per employee
Another study, this one by the Society for Human Resource Management, shows that companies that invest in employee well-being and create a positive work environment have a 41% lower turnover rate than those that do not.
Saving lives and preserving the quality of those lives should be priorities in the construction industry. The best way to demonstrate the value you place on your workers, their loved ones, and their well-being is through your culture. A culture focused on all workers working safely all the time, rather than a culture focused on chasing numbers that can be manipulated, best ensures that your employees return to their loved ones at the end of each shift, at least as healthy as when they arrived.
Healthy corporate cultures have leaders (from the frontline to the C-suite) who take ownership of safety. Owning safety is different than being held accountable for it. It means that leaders take initiative rather than having it pushed upon them. It also means that leaders weave safety into the fabric of daily activities where it’s inseparable from efficiency, quality, and profitability.
- Mike Jackson, PDM Constructors/Durapods
It means that safety becomes a mindset and a habit, changing our cultures and influencing outcomes. Accountability too often means forcing employees by threat of disciplinary action to adhere to a set of standards. Ownership brings engagement. Accountability instills fear. And fear is toxic to sustainable success. There are no examples of companies that punished and disciplined their ways to safety success and thriving cultures.
PDM Constructors/Durapods (PDM), an ENR 600-ranked top specialty contractor, is a prime example of a company focused on culture above mere compliance. PDM’s cultural journey has been underway for more than a decade and is one of relentless innovation. PDM’s obsessive focus on prevention through design, smart risk mitigation, and continuous improvement sets a new benchmark for the industry.
Knowing that employees are vital to any company’s success, PDM President Craig Melograno minces no words when empowering his team to successfully navigate the myriad challenges inherent in construction. In a company-wide email, Craig emphasized to his employees “It is so important for us to continue to keep our game at a high level and not fall prey to bad influences. I fully support and will defend every single ‘No’ as a response for stupidity that you might face. Keep up the good work and diligence.”
PDM VP of Operations, Mike Jackson noted during a recent presentation at the AGC National Safety Conference that “the real test of a healthy culture is whether it can remain true to its values when under extreme stress.”
Are you ready to take that next step in your culture journey where employees own their role and where they focus on working safely all day, every day? Now is the perfect time.