The National Safety Council estimates a worker injury with NO lost-time costs $7,000 on average. A company must sell extra product to cover the accident costs. For example, if a company has an accident that costs $5,000 and operates with a profit margin of 3%, then $167,000 in additional sales are needed to make up what was lost on this one accident.
The costs of reacting to workplace injuries and illnesses far exceed the costs of preventing them from happening in the first place. The direct costs of workplace accidents were estimated at $48.6 billion in 2006.* Direct costs of a workplace accident/incident include:
• Payment to workers,
• Workers’ compensation payments,
• Medical expenses, and
• Costs for legal services.
Businesses paid an additional $127 billion to $212 billion of indirect costs in 2006.* Indirect costs of a workplace accident/incident include:
• Replacement workers,
• Damaged property,
• Accident investigation,
• Corrective action,
• Delays/lost productivity,
• Low employee morale,
• Increased absenteeism, and
• Poor customer/community relations.
The total financial impact of serious workplace incidents is between $170 and $255 billion annually.*
*Liberty Mutual 2008 Workplace Safety Index.
TOP TEN Bottom Line Benefits of an EFFECTIVE SAFETY PROCESS:
- Reduced absenteeism
- Lower turnover rates
- Higher productivity
- Greater efficiency
- Increased quality
- Decreased scrap/waste
- Increased employee morale
- Positive brand image
- Decreased health care costs
- Decreased workers compensation costs
Protect Workers. . .Pay Yourself
For every $1 invested in workplace safety and health. . .employers see a $4 to $6 return
