If That's Not Value - I Don't Know What Is - 01/13/2020
U.S. Compliance Systems, Inc.
Monday, January 13, 2020
If That's Not Value - I Don't Know What Is
Today I’d like to talk about the value of workplace safety, and to help get my point across we’ll talk about two things: the direct and indirect costs associated with workplace accidents.
Let’s start with direct costs:
- Workers' Compensation costs. Workers' Compensation payments are determined by the cost of worker injuries.The more accidents a company has, the more expensive the coverage gets.
- Fines. These can include OSHA penalties and other government penalties.
- Downtime and/or loss of production. Time is money and any organization must keep the job going. Injuries can cause major disruptions that result in the wasteful and expensive loss of work.
- Record keeping and paperwork. Injuries require a high volume of paperwork and record keeping and that means someone from your company is going to be busy doing something that is not directly related to what they normally do for your company.
- Damage to equipment or property. Many employee accidents involve equipment or property damage and that can get expensive.
- Legal fees. Where there's an employee injury, there is typically an attorney involved in some way or another.
- Increased insurance rates. If a workplace accident involves damage to equipment or property, then next year's premiums are likely to go up.
Now let’s look at some indirect costs:
- Hiring and training replacement employees. When an employee is injured and out for an extended period, he or she needs to be replaced and that often requires training which costs money. This could also lead to the loss of productivity while the new employee learns and becomes proficient in his or her work activity.
- Loss of customer and public goodwill. If customers become aware of a workplace accident, it could drastically undercut their confidence in your company, leading to the loss of future work. If the accident leads to OSHA citations, you might be asked to list those citations.
- Cleanup. If a workplace accident caused damage to equipment and property, it will cost your company valuable production time and money cleaning up the damage.
- Accident investigation and implementation of corrective measures. Accident investigation and implementation of corrective measures takes time away from managing the jobsite.
- Lower employee morale and absenteeism. It's a fact that if employees are working for a company that has a high accident rate, their employees have a lower morale and higher absenteeism rate leading to lower productivity.
- Disrupted work schedules. Having to cover the responsibilities of an injured co-worker, accident investigation or cleaning up damaged equipment and property can disrupt schedules leading to the loss in productivity and project delays.
And let’s not forget the fact that a safe workplace helps to ensure your employees go home at the end of the day in the same condition they arrived.
If that's not value - I don't know what is.
Have you received your first Safety E-QuickTip or just want to look at 300+ past issues? Check out our Safety E-QuickTips Archive Page on our website.
If you know of someone or a company that might benefit from receiving Safety E-QuickTips, please take a moment to share this with them so they can sign-up today.
Thanks for Reading and Please – Work Safe This Week!
U.S. Compliance Systems, Inc.
Receive Safety E-Quick Tips First Thing Monday Morning 4:30 EST
Latest Archived 2020 - Safety E-Quick Tips
- 08/10/2020 - Needless Accidents Are Just That - Needless
- 08/03/2020 - That's Right - Short And To The Point
- 07/27/2020 - Here's Something I Think You Will Want to See
- 07/20/2020 - Sometimes It's Thought That You Should Let the Sleeping Dog Lie...
- 07/13/2020 - It Can Be Quick and Easy to Implement
- 07/06/2020 - Establishing Safety Programs and Procedures
- 06/29/2020 - Keep It Simple -- Keep Them Safe
- 06/22/2020 - But What About Workplace Safety?
- 06/15/2020 - But It Wasn't Going To End The Typical
- 06/08/2020 - Working Together We Can Make It Happen