Why Preventing Work Place Accidents is a Sound Financial Business Strategy

The cost of a lost time accident varies from country to country and from state to state. Even so, there are common areas of loss. Some of them are visible and easy to measure, on the other hand some of them are invisible and can only be estimated. There is one constant that cannot be ignored. It is almost impossible to measure but represents what is the greatest loss of all. It is the loss to the victim of the accident. They tend to suffer the biggest loss and are probably the people who can least afford it, financially or emotionally. It makes good business sense to prevent accident in the work place.

Immediate visible losses created by workplace accidents

When a business repeatedly claims insurance costs for accidents, their premium will inevitably rise adding to the overheads of the business.

When the accident occurred, it is likely that other employees stopped work to look at or comfort him/her, or just out of curiosity. For how long? What was the cost?

Did someone take the victim for treatment? Who did their job?

What was the loss in dollar terms?

If first aid was given, what was the cost of the dressings etc?

When the person finally returned to work there was a time before he/she was able to produce as effectively as before. What is the cost of this?

You normally have to produce a report on the accident. What time was involved and what did it cost?

Other managers including the immediate supervisor were involved in the report. How much time did this cost?

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The injured person’s job would have to be fulfilled by someone. If this new person’s job was not done what did this cost?

If the new person’s job was fulfilled by someone else, who in turn did their job or did it not get done? What was the cost?

The replacements are unlikely to be as proficient in the jobs as the original people. What did this cost in training and familiarization before they were as profitable as the original people?

Were any tools or equipment damaged in the accident? If so, how much did it cost to repair or replace them?

Was there any down time as a result of the damage? What did this cost?

Were any products damaged or spoiled as a result of the accident? What was the cost of rejecting or re-working them?

Invisible losses created by a lost time accident

Possible deterioration of industrial relations particularly if the union had recognized the potential for the accident previously.

Low public perception negating promotional and advertising dollars. Often, bad publicity surrounds an industrial accident and implicitly the business seems to get the blame.

This accident may create resentment among the staff because they believe the organization does not care about their health or welfare.

In turn this will lead to poor morale in the workplace leading to low productivity and low quality. A withdrawal of all discretionary effort.

Lack of loyalty by staff leading to higher staff turnover.

Loss of skill and experience contributing to failed production targets.

Poor internal customer service leading Injury Attorney Alameda to a breakdown in team work.

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A reduction in external customer service leading to dissatisfied customers.

After a serious injury, the equipment is normally taken out of service until after the investigation.

Cost of supervision or control measures to prevent recurrence.

Loss of esteem from Government bodies. This can create a situation where they How To Get Big Personal Injury Cases withdraw any co-operation and make it very difficult to achieve anything.

Long term reduction in victim’s productivity during months after return to work.

Increased cost of expensive rehabilitation programs

The invisible costs can be hard to establish and individually they might not seem to be a great deal, however, together they represent a substantial loss. It has been estimated that the minimum loss to a business is a least two or three thousand dollars a day profit for every day that the person is away from work.