Health and Safety KPIs: 8 Essential Indicators to Monitor HSEQ Performance

Key Performance Indicators (KPIs) are valuable tools for monitoring various metrics, from marketing and account management to employee health and safety. They provide insights, enhance decision-making, and facilitate effective performance evaluation across multiple domains. Organisations are responsible for ensuring their employees’ and stakeholders’ health and safety. This is where Health, Safety, Environment and Quality (HSEQ) KPIs come in - to provide a clear view of the organisation’s performance in these critical areas.

Health and safety teams play a crucial role in tracking and assessing progress using Safety KPIs, leveraging measurable values to review performance against specific objectives.

So, what are the essential HSEQ KPIs that organisations should monitor? Let’s examine the eight key metrics leading indicators to help businesses comprehensively understand their HSEQ performance and drive continual improvement.

Introduction to Key Performance Indicators

Definition of KPIs in Health and Safety

Key Performance Indicators (KPIs) in health and safety refer to specific, quantifiable measures that organisations use to gauge their performance in maintaining a safe and healthy workplace. These indicators provide a snapshot of how well the organisation is doing in terms of health and safety, allowing for the identification of trends, potential risks, and areas needing improvement. By regularly monitoring these safety KPIs, organisations can ensure they are on track to meet their health and safety goals, comply with regulations, and foster a culture of safety.

Importance of Monitoring Health and Safety Performance

Monitoring health and safety performance is crucial for any organisation, as it directly impacts the well-being of employees, the environment, and the overall success of the business. Effective health and safety performance measurement helps to:

• Identify Potential Risks and Prevent Incidents: By tracking health and safety KPIs, organisations can spot potential hazards before they lead to accidents, allowing for timely interventions.
• Improve Processes and Reduce Costs: Continuous monitoring helps streamline health and safety processes, reducing the likelihood of costly incidents and improving overall efficiency.
• Enhance Safety Culture and Employee Engagement: Regularly reviewing safety performance fosters a culture of safety, encouraging employees to be more engaged and proactive in maintaining a safe work environment.
• Compliance with Regulatory Requirements: Keeping an eye on health and safety KPIs helps the organisation remain compliant with local, national, and international safety standards.
• Drive Continual Improvement and Excellence in Health and Safety: Ongoing performance measurement allows organisations to set benchmarks, track progress, and implement improvements, driving excellence in health and safety practices.

By tracking and analysing health and safety KPIs, organisations can make data-driven decisions, prioritise resources, and allocate budgets effectively to address health and safety issues.

Types of Health and Safety Metrics

Health and safety metrics can be broadly categorised into leading and lagging indicators. Understanding the difference between these types of metrics is essential for comprehensive safety performance monitoring.

Leading Indicators

Leading indicators are proactive metrics that help identify potential risks and prevent incidents before they occur. These indicators provide a forward-looking view of health and safety performance, enabling organisations to take corrective actions in advance. Examples of leading indicators include:

• Safety Training Completion Rates: Monitoring the percentage of employees who have completed required safety training programs.
• Near-Miss Reporting Rates: Tracking the frequency of reported near-miss incidents, which can highlight potential hazards.
• Employee Safety Engagement and Feedback: Gauging employee involvement in safety programs and their feedback on safety practices.
• Compliance with Safety Procedures: Ensuring adherence to established safety protocols and procedures.
• Safety Audit and Inspection Regularity: Regularly conducting safety audits and inspections to identify and mitigate risks.

Leading indicators are essential for predicting potential health and safety issues and taking proactive measures to prevent them. By monitoring these metrics, organisations can reduce the risk of incidents, improve safety performance, and create a safer work environment.

Lost Time Injury Rate (LTIR)

The Lost Time Injury Rate (LTIR) is a crucial safety metric used to measure the number of lost time injuries (injuries that result in an employee's absence from work) per a specific number of working hours. It is calculated by dividing the total number of lost time injuries by the total number of hours worked and then multiplying by 200,000 (or 1,000,000 in some cases) to standardise the rate.

The formula for calculating LTIR is as follows:

Total number of lost time injuries / Total number of hours worked x 200,000

LTIR is a lagging indicator, providing insight into past safety performance and helping identify improvement areas. A high LTIR could indicate inadequate safety measures or training, while a low LTIR indicates effective safety practices. LTIR specifically focuses on providing insight into more severe injuries and their impact on workforce productivity.

Total Recordable Incident Rate (TRIR)

The Total Recordable Incident Rate (TRIR) is another key metric used to measure an organisation's overall health and safety performance. It includes all work-related health and safety incidents, not just those resulting in lost time injuries. This metric considers minor and significant injuries, illnesses, and near misses.

It is calculated by multiplying the total number of recordable safety incidents by 200,000 and dividing by the total number of hours worked. TRIR can be used to identify safety improvement areas in the following ways:

1. Root Cause Analysis: TRIR can help identify the root causes of incidents and injuries, which can aid in implementing corrective actions.
2. Trend Analysis: Analysing TRIR trends over time can help companies identify areas where safety improvements are needed.

Near Miss Reporting Rate

The Near Miss Reporting Rate is a vital metric in occupational health and safety management, offering valuable insights into incidents that could have caused harm but, thankfully, did not. A near miss refers to an unplanned event or situation with the potential to result in injury, illness, or damage. However, due to timely intervention or sheer luck, it does not cause harm.

The formula for calculating the Near Miss Reporting Rate is:

Near Miss Reporting Rate = (Number of Near Misses/Total Hours Worked) x 1000

This metric showcases the effectiveness of a company's own safety policies, protocols and procedures. A high near-miss reporting rate indicates that employees are actively identifying and reporting potential hazards, leading to timely corrective actions being taken. On the other hand, a low near-miss reporting rate could signify underreporting or inadequate safety measures in place.

Companies must encourage and promote a culture of open communication and near-miss reporting. Employees should feel comfortable speaking up about potential hazards without fear of reprimand.

Environmental Incident Rate

The Environmental Incident Rate (EIR) is a metric used to measure the number of environmental incidents within a specific time frame. However, the formula for calculating EIR is less widely standardised than other safety metrics such as TRIR. Additionally, the threshold for what constitutes an environmental incident may vary between companies.

Environmental incidents can include spills, emissions, and other events that could harm the environment.

To accurately track EIR, companies must have a robust reporting system. This includes establishing clear definitions of an environmental incident, ensuring all incidents are recorded and investigated thoroughly, and implementing corrective actions to prevent future occurrences.

Quality Control Metrics

Quality Control Metrics are tangible indicators used to evaluate the safety key performance indicators, effectiveness, and overall quality of a product, process, service, or system. These metrics serve as a means to gauge and ensure their desired quality is achieved and maintained. These metrics furnish objective data, enabling organisations to comprehend how effectively they achieve their quality goals and objectives.

Quality Control Metrics are crucial in various fields, including manufacturing, healthcare, customer service, etc. 

Some examples of Quality Control Metrics include:

• Defect Rate: This metric quantifies the proportion of products or services that fail to meet the designated quality standards. It helps identify areas for improvement and assess the impact of corrective actions.
• Overall Equipment Effectiveness (OEE): OEE measures how well equipment or machinery is utilised to produce quality products. It considers availability, performance, and quality factors to provide a holistic view of equipment efficiency.
• Mean Time to Repair (MTTR): MTTR is the average time to repair equipment or machinery. A lower MTTR indicates that repairs are being done efficiently, minimising downtime and increasing productivity.
• Lead Time: Lead time is the time it takes for a product or service to be delivered from start to finish.
• Work-In-Progress (WIP) Inventory: WIP inventory refers to unfinished products or goods still in production. Keeping a low WIP inventory helps to reduce lead time and improve overall efficiency.
• Overall Labour Effectiveness (OLE): OLE measures how efficiently labour resources are used in production. It considers availability, performance, and quality factors to assess labour efficiency comprehensively.
• Customer Satisfaction Score (CSAT): CSAT measures customers' satisfaction with a product or service.
• Average Handling Time (AHT): AHT is the average time a customer service representative takes to handle a customer's inquiry or issue.

Compliance Rate

Compliance rates represent the proportion of entities or individuals who adhere to specific regulations, policies, or standards. These rates can be calculated for various areas, such as environmental compliance, medication adherence, and adherence to clinical practice guidelines. Additionally, compliance rates can indicate employees' conformity to company policies and procedures, including expectations regarding attendance and productivity.

For instance, in the healthcare sector, compliance rates are assessed through national hand hygiene audits, with the current national benchmark set at 80%. Companies must file regular GST returns for taxation purposes, referred to as Business Activity Statements (BAS). Compliance rates depend on factors like company turnover and transaction nature.

Here are some examples of compliance rates in different industries:

• Pharmaceutical: Medication adherence is a crucial factor in the pharmaceutical industry. It refers to how well patients follow prescribed medication regimens and can significantly impact treatment outcomes and overall health. Non-adherence can also lead to increasing healthcare costs.
• Environmental: Companies must comply with environmental regulations to minimise their ecological impact. This can include following waste management protocols, reducing carbon emissions, and using sustainable practices.
• Corporate: Compliance rates in corporate settings often refer to employee adherence to company policies and procedures. This can include attendance, safety protocols, and ethical standards.
• Financial Services: The financial services industry is subject to regulatory compliance mandates to protect the public and investors. Specific compliance rates can vary based on the regulations, such as the Sarbanes-Oxley Act (SOX) and the Payment Card Industry (PCI) Security Standard.
• Energy Sector: Energy suppliers are subject to compliance regulations for safety and environmental protection purposes. Compliance rates in this industry are essential for ensuring adherence to these regulations.
• Data Security and Privacy: Industries handling sensitive data, such as payment card data and personal information, have specific compliance rates related to data security and privacy regulations.

Training and Competence Metrics

The Employee Training and Competence Metrics are essential indicators organisations use to assess the effectiveness of their training programs and the level of competence among their workforce. These metrics measure various aspects related to employee training, skill development, and proficiency in performing job tasks.

Metrics are used to assess training program effectiveness and employee competence through quantitative and qualitative methods. 

Here's how each metric is typically measured:

• Training Completion Rate - This is the percentage of employees who have completed all required training courses within a specified time. A high completion rate indicates that employees are actively engaged in their training and are motivated to learn.
• Assessment Scores - These scores measure the proficiency level of employees in specific job tasks after completing training programs. It helps organisations identify areas where further training or improvement is needed.
• Employee Feedback - Employee feedback surveys can provide valuable insights into the effectiveness of training programs. Through these surveys, employees can share their experiences and provide suggestions for improvement.
• On-the-Job Performance - This is how well employees apply the knowledge and skills learned in training to their job performance. It can be assessed through regular evaluations or performance reviews.

Emergency Response Time

Emergency response time is how quickly your organisation can respond to an emergency. This includes how fast employees can identify and report an emergency and how quickly they take action to resolve the situation. This metric is essential for assessing the effectiveness of emergency response systems and the ability to provide timely assistance during critical situations.

The response time during emergencies is measured by:

• Notification Time: Emergency response time is measured when the emergency is reported or when a call for help is initiated. This can be done through calls, emergency alerts, or automated sensors.
• Dispatch Time: Emergency services dispatch personnel and resources to the scene once the emergency is reported. The response time includes the time taken for dispatchers to receive the call, process the information, and dispatch the appropriate responders.
• Travel Time: Travel time is the duration it takes emergency responders to reach the emergency location from their point of origin. This includes navigating traffic and obstacles to the scene as quickly as possible.
• On-Scene Time: On-scene time is the duration emergency responders spend at the emergency location, providing assistance, administering medical care, fighting fires, or addressing other critical needs.

Tips for Enhancing Your Health and Safety KPI Monitoring

After learning the essential safety KPIs, there are a few tips that can help you enhance your health and safety KPI monitoring:

Involve employees

Involving your employees in monitoring safety metrics is crucial. They are the ones who are at the frontline of operations and can identify potential hazards or risks that may not be apparent to management. Encourage them to actively participate in safety meetings, report incidents or near-misses, and provide feedback on safety procedures.

Continual improvement

To maintain a high level of HSEQ performance, continual reviewing and improving safety processes is essential. Regularly conduct audits and inspections to identify any gaps or areas for improvement. Use the results to develop action plans and implement changes to enhance safety performance.

Conduct Regular Safety Audits

Periodic safety audits can help identify potential hazards and areas for improvement within your organisation. Addressing these issues proactively can prevent accidents and emergencies from occurring.

Encourage Reporting and Communication

Establishing open communication channels for promptly reporting any ill health or safety concerns or incidents is essential. This information can help address immediate safety hazards and prevent them from occurring. Encourage employees to speak up and write about any unsafe conditions or practices.

SafetyDocs is your Go-To Partner

Tracking your health and safety KPIs can feel overwhelming, particularly when managing a large workforce or multiple locations. SafetyDocs by SafetyCulture is here to support and assist you in managing your safety processes effectively. Our products streamline safety data collection, analysis and reporting so that you can focus on creating a safer work environment for your employees. We offer documents such as safety plans, hazard and risk assessments, incident reports, and more to help you comply with regulations and monitor your HSEQ performance.

Browse from our collection of safety templates and choose the ones that best fit your organisation's needs. Here are some examples of the templates we provide:

• HSEQ Organisational Roles, Responsibilities, Accountabilities & Authorities Policy
• Incident & Investigation Report Form
• Annual Audit Schedule
• Internal Audit Report

Let SafetyDocs simplify the process and give you peace of mind, knowing that your organisation complies with regulations and performs at its best. Contact us today to learn more about us.

Our team of experts is dedicated to providing accurate and informative content. Craig Cruickshank, our senior HSEQ advisor at SafetyDocs by SafetyCulture has reviewed this blog post to ensure the highest level of quality.

Learn more about Craig's work on LinkedIn for more industry insights.

Available for instant download and supplied in fully editable MS Word format for use in your business.

Please note that the above information is provided as a comment only and should not be relied on as professional, legal or financial advice.