Inside AGC — September/October 2006

Disaster Preparedness

Preparing for an Emergency from an H.R. Perspective

Emergency preparedness begins long before the local news warns residents about an impending storm. It takes time and thorough planning to create, communicate and practice the steps that ready a company for a disaster. Construction companies can offer essential services that sustain other components of a community, so it is especially important that they continue operating during a disaster or recover quickly after it.

AGC-member Wharton-Smith Inc., Lake Monroe, Fla., had an emergency plan in place when both its office and a large project in the Grand Cayman Islands were hit by a Category 5 hurricane in 2004.

"If we wouldn't have had an emergency plan, it would have been chaotic," says David Hayes, vice president-international/entertainment, Wharton-Smith Inc. "The plan allowed us to anticipate some of the events and react to them quickly. We had already thought through the clean-up of the job site, securing our materials and, ultimately, the evacuation of personnel."

Creating Emergency Plans

The emergency plan is the centerpiece of disaster and emergency preparedness, and must be considered carefully. "It is smart business. You must be prepared. You want to take care of your employees, customers and business interests," said Hope Hughes, Director in Human Capital Practice, Deloitte Consulting, LLC., New York City.

Planners must anticipate all possible natural and man-made disasters, such as utility outages, deaths of key company personnel, hazardous materials spills-anything that stops productivity-and whom it will impact.
The plan should be simple and easy to follow. People will remember the main points if the plan has been communicated and practiced regularly.

"Take the common elements of what you do every day and add in flexibility for the current situation," says Tim McGrath, McGrath Consulting Group Inc., Wonder Lake, Ill.

It's important to know how to contact suppliers, distributors, customers, employees and employee families. The plan must also include how to save business records. "After Hurricane Katrina, I had a member walk into my office with a loose-leaf binder, saying that was all they had left of their office," says Derrell Cohoon, CEO of Louisiana AGC.

Scanning every important document is important for company continuity. "Set a specific time every week to update work records," says Victoria McGrath, McGrath Consulting Group.

Implementing the Plan

One mistake managers make when planning for a disaster is assuming that employees will know what to do.
"You cannot take it for granted that they know the plan," says Hughes. "Make the plan real for people."
The plan needs to be incorporated into training sessions and regularly reviewed. Most important, emergency drills should be conducted regularly.

"Even if you have a minor emergency, use the plan. If you leave the plan alone until a big emergency, you won't remember," says Tim McGrath.

Employee Assistance

Planners must also take into consideration the emotions of employees. In the midst of an emergency, employees will think first of the safety of their families and probably be less able to focus on immediate company tasks. It's also important to have an employee-assistance program in place that offers employees and their families counseling after a traumatic event.

"The most-often overlooked part of disaster preparation is employee reaction," says Tim McGrath.

Simply having an emergency plan can help calm employee fears. "Employees want to know that the company has thought through everything," says Brad Giles, vice president for environmental safety, health and security, Washington Group Inc., Boise, Idaho, and a member of the Idaho AGC. "They want to know that they'll have a job when they get back. It gives employees and management confidence." The Washington Group, Inc. had to put its emergency plan to the test on September 11, 2001, when its office in the World Trade Center's second tower was hit. The plan took effect immediately, providing emergency benefits, counseling and eventually a temporary office location for its employees impacted by the disaster.

Unfortunately, no business is immune to disaster, but good emergency planning minimizes the impact.