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KPIs & Workers’ Comp Risk Management: Loss Control Tips for the Building Maintenance Industry

Building maintenance companies face many exposures during day-to-day operations. From compliance issues to contractual risk, there are numerous factors at play. One of the biggest areas of concern, however, is employee-related loss. Building maintenance companies need effective workers’ comp risk management. Fortunately, they can use key performance indicators (KPIs) to help address this exposure.


KPIs are performance measurements that identify how successful an organization is at a given activity. Once identified and understood, KPIs can be used to guide business practices toward successful outcomes. This is especially helpful when it comes to developing successful workers’ comp risk management plans.

Know the Numbers

We are currently seeing KPIs leveraged across a number of building maintenance companies for risk management purposes, including:

  • Commercial (office buildings, property management firms)
  • Healthcare (hospitals, nursing homes)
  • Industrial (manufacturing, food processing)
  • Education (schools, colleges)
  • Hospitality (restaurants, stadiums, health clubs)

It’s important to know your main sources of workers’ compensation loss. The top five for building maintenance companies are:


Another major concern is turnover. On average, 18% of employees stay with a building maintenance company for one year, and only 11% remain for a 10-year period. This revolving door of new hires can make workers’ comp risk management even more challenging.

Using our analytics, we can evaluate incidents based on many factors, such as an employee’s tenure or reporting lag time. We can also isolate claim frequency by location and day of the week. All of these indicators can help us identify underlying issues and develop effective risk management solutions. While reducing accidents and claims has obvious financial incentives, it can also have a positive impact on company culture. A better company culture often improves loss trends, so these benefits can be cyclical.

Apply the Data

Once identified, KPIs should be thoroughly reviewed with internal teams. This will highlight the main areas of risk and provide an opportunity to discuss best practices. It’s vital to address all operational challenges that might contribute to loss trends. For building maintenance companies, those often involve:

  • An inadequate workforce
  • Slip, trip and fall exposures in owned and common areas
  • Bilingual barriers
  • Return-to-work obstacles

Our industry experience paired with our membership in the Building Services Contractors Association International (BSCAI) gives us an informed perspective. We suggest implementing controls and procedures that closely focus on claims and risk control.

When it comes to claims, it can be beneficial to:

  • Provide exceptional claim service
  • Implement a nonprofit return-to-work program
  • Use an injury severity indicator

 When it comes to risk control, it may be helpful to utilize:

  • Post-injury management consulting
  • Online tools designed to explain, track and lower the impact of a loss
  • Data on incident frequency by occupational group

It’s important to remember that most service contracts include a workers’ compensation waiver of subrogation that favors the customers of building maintenance companies. This endorsement is regularly available from insurance carriers and would essentially prevent your insurance carrier from pursuing recovery from your customers or their insurance carriers. Keep this in mind while performing your risk management due diligence.


Power in Numbers

At SilverStone Group, we encourage a deeper look at your KPIs. Our clients receive an experience modification (mod) breakdown, which shows the current, average, minimum and controllable workers’ compensation modifiers. Companies can use this data to supplement information included in their proposals and bid specifications.

We also provide a loss detail report. This includes the injury cause and its impact on the mod calculation.


We know knowledge is power. Understanding these business metrics can help you improve your workers’ comp risk management plan. This has the potential to reduce loss trends, control costs and help your company reach its goals. The professionals on our Property & Casualty Team are eager to assist. There’s no better time to crunch the numbers than right now.

* Statistics for this article were obtained from Travelers Insurance Company and the ISSA.

This article originally appeared in the 2019 | ISSUE TWO of the SilverLink magazine, under the title “KPIs and Workers’ Compensation Risk Management: Loss Control Tips for the Building Maintenance Industry.” To receive a complimentary subscription to the SilverLink magazine, sign up here.


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