Safety & Costs of Accidents

Do your employees know how to work safely?

Does your organization understand the cost promoting safety and preventing accidents in the workplace is much less than the cost of accidents?

These questions provide focus for developing a culture that enhances safety in your organization. The first question is simple and direct. It may generate a lot of activities such as training and policy to achieve the task. The second question points to the business benefits of improved safety in your organization. Its important to understand the business-return for safety especially in the face of ever increasing demands of the business environment.

A number of factors impact the ultimate cost of workplace injuries. Costs of workers compensation, hiring replacements, lost production time are tangible-direct factors effecting total costs of accidents. These costs come right out of profits. For example, higher workers compensation costs limit the capital resources available for critical investments. Tangible costs are often measured by cost of claims.

There are also intangible factors such as disruption to family, disruption to workers morale. Accounting for these on a balance sheet is much harder. Some of these factors come into play long before an incident or injury occurs, and some only long after.

Promoting safety is a cost saving tool. Moreover, it can be a workforce development tool.