BCInsights Volume 8, Issue 12

OSHA in the Office

Most Americans associate the Occupational Safety & Health Administration ("OSHA") Act, passed in 1970, with manual laborers; however, OSHA applies to all private employers in some degree. In fact, OSHA regulations even cover employees who conduct their work primarily sitting at a computer in an office environment. Most broadly, the Duties clause of the Act requires that employers of office workers "furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees." (29 USC 654)

Compliance with OSHA in an office environment generally requires common sense safety protocols. For example, if boxes in an office are stacked so high that they block fire suppression sprinklers, that would violate OSHA's fire safety provisions even though OSHA does not specifically regulate how high boxes can be stacked. As another example, OSHA does not regulate the temperature of an office; however, if several employees have heat strokes, then the employer is not fulfilling their obligation under the Duties clause to create a safe working environment. Some specific topics covered by the administration of OSHA that affect employers of office workers are:

The US Department of Labor offers several sample policies, sample training programs, and advisory services that any employer can use as a free resource to ensure compliance. Most information is available at their website (www.osha.gov) or via a telephone call to your local branch office.

Source:
http://www.osha.gov/pls/oshaweb/owasrch.search_form?p_doc_type=OSHACT
http://www.dol.gov/

Loss Prevention Tips for Reducing Shrinkage

The holiday season is a welcome time for retailers who have been struggling through the economic crisis. Unfortunately for most retailers, shrinkage is an ongoing problem. Shrinkage is the loss of products as shown by what a company believes it has on hand as compared with what the actual physical count reveals. Shrinkage may occur due to theft, loss, or record-keeping errors.

According to the 2007 National Retail Security Survey conducted by Dr. Richard Hollinger at the University of Florida:^[1]

• Retailers report annual inventory shrinkage of $34.8 billion.
• 44% of all inventory shrinkage is attributed to employee theft. This translates to an employee theft price tag of $15.2 billion.
• The average admitted dollar loss per employee theft incident was a record $1,442.67, which was higher than the 2006 figure of $1,306.59.
• The average dollar loss per shoplifting incident was $344.91.
• 34% of all inventory shrinkage is attributed to shoplifting.
• 15% of all inventory shrinkage is attributed to administrative & paper error.
• 4% of all inventory shrinkage is attributed to vendor error.
• 3% of all inventory shrinkage is attributed to an unknown error.
• Retailers are forced to pass along these substantial profit losses in the form of higher product prices.
• The average length of employment for a dishonest worker was 9.53 months before getting caught for dishonesty

[1]

In order to help prevent and detect shrinkage during the holiday seasons, retailers must implement training and strong policies and institute process and procedures that deter employee and consumer theft. Here are some areas that retailers should invest in to help reduce shrinkage.

Training:
Loss prevention must start with employees. Retailers must change their culture and promote an environment of trust, pride, and loyalty. A majority of employees are law-abiding citizens and will report theft and wrong-doing.

Reporting Mechanism:
Employees are your first line of defense against loss prevention. Retailers must provide simple and anonymous reporting mechanisms for employees to report theft or wrong-doing.

Surveillance System:
Retailers should implement video surveillance throughout the stores (front room, stockroom, and the back office). A surveillance system will help increase loss detection and also serves as a deterrence mechanism.

Mystery Shopper:
Retailers can deploy Mystery Shoppers to pose as customers. Shoppers may be in-house or contracted from a third party. The purpose is to identify dishonest employees and detect organized theft rings.

Resources:
ASIS International is one of the leading organizations with highly qualified loss prevention experts who can provide guidance and additional best practices. The Retail Loss Prevention Council (http://www.asisonline.org/councils/RETS.xml) is an ASIS council that serves as an important resource for Loss Prevention professionals, and provides a vehicle for exchange of new technologies and best practices critical to the achievement of Loss Prevention objectives.

There are many other loss prevention steps to take towards preventing ongoing shrinkage. Retailers should consider all of these options and benchmark best practices within the retail industry.

References:
1. http://www.theftdatabase.com/news-stories/2007-nrss-highlights.html
http://www.asisonline.org/councils/RETS.xml

Preserving a Positive Psychological Contract

The notion of a psychological contract was first coined by Argyris (1960) to refer to employer and employee expectations of the employment relationship^[1] and it "represents the mutual beliefs, perceptions, and informal obligations between that employer and an employee."^[2]

Over time this bond, of sorts, can be strengthened and diminished depending upon certain behaviors, attitudes, interactions, and events that occur throughout the employment relationship. The employee may suppose, based on this contract, that he is owed something in addition to his written agreement, such that hard work and loyalty should be rewarded by increased levels of benefits, skills training, advancement opportunities or substantial wages. Consistent with that thought process, employers may believe that they are owed more effort from the employee, such as the ability to work extra hours when required, new skills development, and a high level of attendance and punctuality in exchange for wage and benefits. If the employee or the employer have different ideas about what these expectations actually are, a rift may form and a lack of trust and stability could follow for both parties.

During these difficult economic times, an employer may no longer have the ability to maintain the same psychological contract that it was able to in the past. It is important for employers to remember that being as candid and up-front with your employees as possible will help in the prevention of damage to employee relations. For example, telling your employees what your plans are for the future can help an employee stay motivated, positive, and committed, even when the employer must cut back on previous benefits. Fostering a "team-like" atmosphere is a good way to encourage morale. Even if the organization has to finally concede to significant cuts, regular communication is what matters most to the employees who remain and will help them to continue being loyal and more satisfied in their roles in the foreseeable future. In some cases, the employee will have to carry more weight for the organization, which can be a positive change for the employee, who is now being recognized as a "key" player in the future of the company.

Fulfilling a positive psychological contract for both the employer and the employee requires trust and communication. This is attainable through both party's willingness to commit to an open and honest work environment where those virtues can exist and endure.

References:
1 Argyris, C. (1960). Understanding organisational behaviour. Homewood, Illinois: Dorsey Press.
2 Wikipedia - http://en.wikipedia.org/wiki/Psychological_contract

Quote of the Month

"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome."
–Anne Dudley Bradstreet

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