HSE Key Performance Indicators need to be Tracked
Organizations employ key performance indicators (KPIs) to measure their progress in reaching company-specific health and safety goals. These KPIs allow?safety professionals?and company leaders to collect data and communicate trends, which can then be used to identify where further improvements are needed.
This article will serve as a primer on key performance indicators for?occupational health and safety?and provide advice on which ones you should choose for your organization.
What Are Key Performance Indicators?
A key performance indicator is a metric that is tied to a predetermined target and represents how far it exceeds or falls below that target. KPIs provide the company with objective data about their health and safety situation, ensuring adequate feedback on the effectiveness of safety initiatives and policies.
What Are the Characteristics of a Good KPI?
A good KPI should be:
Key Performance Indicators for EHS
The field of?EHS?deals with a large number of risks that need to be effectively and efficiently managed. If they are going to be a useful tool for EHS management, key performance indicators should provide quantitative (or semi-quantitative) data that reflects the safety and health issues and activities in the organization such as information on existing and emerging risks, exposures, and?hazards. The data should also inform safety leaders about the success or failures of preventative actions aimed at mitigating and?controlling workplace hazards.
The two main types of key performance indicators use most frequently are lagging and leading indicators.
1. Lagging Indicators
Lagging indicators?measure a company’s incidents in the form of past?accident?statistics. The most important EHS lagging indicators are:
While those common lagging indicators focus on what went wrong with the company’s safety performance, many safety professionals and company leaders prefer to obtain positive feedback and instead opt to focus on what went well. Examples of positive lagging indicators include:
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2. Leading Indicators
Leading indicators are measures of conditions and activities geared to the?prevention of accidents. Leading indicators, therefore, have predictive value and can be used to improve?safety management systems. And, moreover, they tend to measure the factors that are considered key elements of well-performing management systems.
Important EHS leading indicators include:
Selecting the Best Key Performance Indicator(s) for Your Organization
Before selecting KPIs to be evaluated, safety professionals and company leaders must first understand the safety risks of their operations, evaluate the systems that are in place to manage these risks, and grasp the organization’s business goals, strategies, and?culture.
According to Jan Baldauf, a senior project manager at Environment Resources Management in Ewing, New Jersey, the KPIs that are best suited for a particular organization depends on several factors, such as:
Limitations of Key Performance Indicators
While key performance indicators can provide organizations with objective and valuable information, it may be beneficial to keep in mind a few factors that limit the usefulness of KPIs:
The Bottom Line
By providing valuable feedback and helping to motivate company leaders, KPIs are important for keeping an organization’s EHS management system in ship shape. Combining lagging and leading indicators is an especially good way of getting an adequate picture of workplace safety, both its current state (lagging indicators) and the measures in place to improve it (leading indicators).
As the saying goes, “What gets measured gets managed.” Keeping tabs on KPIs ensures a proactive approach to workplace health and safety.
See video below How to Design Dashboard for HSE KPI
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