According to a recent ERM report, 44% of survey respondents believe contractors are less safe than their employees and 75% agree that contractors engage in riskier work. EHS managers across various industries will face significant challenges in maintaining safety standards as the trend toward contract work continues to grow.
FOR MORE CONTEXT
Contractor safety on the rise
Contractor safety is becoming an increasingly important topic and is set to be a key focus for EHS leaders. The shift toward relying more heavily on contractors is evident, as highlighted in a recent study by ERM. The study revealed that “the migration of work (and risk) to contractors is expected to accelerate, with 63% of participants anticipating an increase in their use of contractors over the next three years.“
Organizations choose to work with contractors for various reasons. For some industries, it is a strategic business decision driven by cost-efficiency, as hiring contractors for specific periods often proves more economical. Other sectors depend on contractors for their specialized expertise, especially when performing high-risk tasks.
More contractors mean more risks
There are two key reasons why this issue is significant for businesses across various industries. First, evidence suggests that as work increasingly shifts to contractors, organizational risks are on the rise. Engaging contractors introduces additional challenges in maintaining strong health and safety performance. A lack of knowledge and alignment with the hiring organization’s existing safety processes, combined with exposure to high-risk environments, can result in incidents with severe consequences. According to labour statistics, “incident rates involving contractors typically occur at a rate three or four times higher than those for full-time employees (FTEs).”
The second reason is the growing demand for transparent safety performance. With rising interest in ESG standards, there is increasing scrutiny on suppliers and contractors, extending beyond carbon footprints to include working conditions and safety records. Alongside this public interest, organizations are also seeking greater visibility into their own health and safety performance to better understand and mitigate business risks.
WHEN YOU NEED TO ACT
Tackling the growing risks head-on
According to Verdantix, one of the top priorities for EHS functions over the next two years is to improve visibility and effective contractor management.¹
The growing reliance on contractors across industries has amplified the need for comprehensive contractor safety and management programs. With contractors often operating under varying safety cultures and health and safety maturity—particularly smaller firms with less robust systems in place—ensuring consistent safety standards becomes increasingly complex. A recent Verdantix report underscores these challenges, highlighting widespread difficulties in managing contractor programs and addressing the rising number of contractors.
To mitigate risks and prevent injuries or fatalities, organizations need to rely on a holistic approach that offer visibility across all stages, from contractor qualification and onboarding to operational performance and evaluation.
PREQUALIFY
The first step in ensuring contractor safety is implementing a robust qualification process. Organizations must document, store and regularly update contractor information within a centralized system. This process should include tracking essential details such as training records, certifications and licenses to maintain compliance and readiness. Additionally, the contractor safety system should support the management of contractual details, project costs and timelines, reducing administrative complexity and ensuring contractors meet all required standards before starting work. Streamlining regular reviews and renewal processes is also critical, enabling proactive and efficient management of contractor relationships.
OPERATIONALIZE
Integrating contractors into existing safety programs is essential, particularly for high-risk tasks. Effective software must support this process by enabling comprehensive incident reporting for both employees and contractors. Such systems capture real-time data on incidents, near misses and observations, delivering valuable insights into operational safety. By analyzing this data, organizations can pinpoint potential risks, ensure contractors receive the necessary training and uphold adherence to established safety protocols.
Advanced software not only streamlines the integration of contractors into the broader health and safety framework but also advances their inclusion into actions management. This ensures contractors actively participate in the assignment, tracking and resolution of corrective and preventive actions. Incorporating contractors into this critical process enhances accountability, strengthens compliance and elevates overall safety performance.
EVALUATE
The final step focuses on leveraging analytics derived from previously gathered data through reporting and audits. Organizations need advanced analytics and reporting tools to consolidate this data into customizable dashboards. These dashboards provide a clear, real-time view of contractor performance, allowing businesses to monitor key metrics, identify trends and gain actionable insights that drive operational efficiency. Detailed audit records complement this process by capturing audit schedules, findings and corrective actions, supporting continuous improvement in contractor safety performance. By effectively evaluating and analyzing this data, businesses can ensure not only compliance and safety but also enhanced performance across all contractor-related activities.
HOW SPHERA CAN HELP
Make contractor safety your priority
As the workforce shifts toward the contractor base, ensuring health and safety performance becomes a real challenge. Prioritize contractor safety to mitigate your own risks.
Sphera’s broad experience and Contractor Safety Management Solution helps manage the full spectrum of contractor-related activities, from pre-qualification to performance evaluation. Based on more than 30 years of industry expertise and the SpheraCloud software platform, Sphera offers a comprehensive solution designed to improve visibility and control of contractor-related activities and business performance, while keeping all workers healthy and safe.
If you want to discuss how we can help on your specific contractor safety risk challenges, please contact us.
¹ Verdantix Market Insight: Using Technology Effectively For Holistic Contractor Safety Insight
