Know Your Lagging and Leading Indicators

Safety data falls into two categories: lagging indicators and leading indicators. Understanding the difference—and prioritizing the right metrics—can be the difference between reacting to incidents and preventing them. Risk Intelligence leverages both lagging and leading indicators to provide a comprehensive view of your risk landscape.

Lagging Indicators: Measuring Yesterday’s Incidents

Lagging indicators track what has already happened. They provide a snapshot of past performance, helping you understand the impact of safety incidents. While important, lagging indicators only allow you to react to problems after they occur. They show trends that you can improve upon. Risk Intelligence uses lagging indicators to identify these trends and strategies for improvement.

Common lagging indicators include:

Loss Runs: A record of past claims, injuries, and costs.
Experience Modifier (MOD) Rating: An experience modifier is a measure of your workers’ compensation claims history compared to industry averages.
OSHA Recordable Incident Rate: The number of workplace injuries per 100 employees.
FMCSA (Federal Motor Carrier Safety Administration) BASICs: The seven categories used to evaluate a motor carrier’s safety performance based on past violations, crashes, and inspection results to identify and address high-risk behaviors.
Profit and Loss Statements: Overall financial performance which can include impacts of safety performance, insurance cost, and productivity.

Lagging indicators cannot prevent what has already happened. But they can allow you spot trends to help prevent them from occurring again. Risk Intelligence helps you learn from past incidents and prevent them from recurring.

Leading Indicators: Predicting Tomorrow’s Risks

Leading indicators are predictive. They track behaviors and conditions that signal an increased risk of incidents before they occur. Companies that focus on leading indicators are proactive, reducing risks before they turn into injuries or fatalities. Risk Intelligence identifies leading indicators to proactively mitigate risks and help prevent incidents.

Key leading indicators may include:

Near-Miss Reporting: Tracking and analyzing near-misses provides critical insights into potential hazards before they result in injuries.
Safety Audits and Walk-Arounds: Regular workplace inspections help identify risks before they cause harm.
Safety Observations: Encouraging employees to report unsafe behaviors or conditions helps create a culture of prevention.
Safety Committee Activity: Strong engagement in safety committees can identify areas for improvement.
Corrective Action Completion Rates: If a safety failure occurs, a proactive corrective action program can positively impact future safety performance. Look at individual and systemic contributing factors.
Technology: Telematics, cameras, and in-plant technology can provide real-time data to spot risky behaviors early, helping companies proactively improve safety and prevent accidents.
Training: A structured employee training program can equip employees with the tools and know-how to safely perform their jobs.

Leading indicators are powerful because they allow you to act before an incident occurs.

Your Data Is Your Story

Lagging indicators tell you where you’ve been. Leading indicators tell you where you’re going.

So, what story is your safety data telling? And more importantly—how is that data impacting your decisions?