What is the True Cost of Workplace Health and Safety?

When it comes to workplace health and safety, there is more than what meets the eye. On one hand, there are the costs of accidents and work-related illnesses and their impact on the other employees’ schedules. On the other hand, there are the costs of implementing a workplace health and safety strategy aimed precisely at preventing such accidents and musculoskeletal disorders. 

At Shoes For Crews, workplace health and safety is one of our top pillars. If an employee is injured and unable to work, this can have a major impact on your staff. In some serious cases, entire workflows can be disrupted while an employee recovers. That is why, in this article, we will discuss the direct and indirect costs of health and safety in the workplace, how to calculate them and the true cost of implementing a safety strategy.

Direct vs indirect costs of workplace accidents

Conditions such as musculoskeletal disorders, sprains and strains can result from poor posture and handling techniques. Your employees need to be protected from falling or moving objects as well as regular aches and pains from standing for long periods of time. You can learn more about the costs of such injuries in a previous post where we discussed the hidden costs of slips, trips and falls in detail. We will briefly touch on some of them again in this section for your review.

Direct

• Repair and remodels
• Lost-time wages
• Replacement of equipment
• Loss of production or delay
• Lack of essential employees or shortage of drivers

Indirect

• Loss of productivity and working days lost
• Decreased employee motivation and morale
• Hiring and training costs 
• Investigation of incident or premises 
• Property damage 
• Impact on company reputation

How to calculate the total cost of health and safety in the workplace

Measuring the total cost of workplace health and safety is essential for your organisation to understand the financial impact of accidents and to take steps to reduce them in the future. There are several methods for determining the direct and indirect costs associated with workplace accidents. The following are the most common:

• Risk Management Approach (a calculation of the total prevention and accident costs)
• Human Capital Approach (an estimation of the value of a worker’s contributions)
• COI (Cost of Illness) Approach (the most comprehensive view of all associated direct costs)

According to the Health and Safety Executive (HSE), the total cost of self-reported workplace injuries and illness in 2019/20 was £18.8 billion, with injuries accounting for 40%.

Costs of implementing health and safety measures

Legally, employers are obligated to implement safety measures and programs to ensure a secure working environment. It is standard practice to perform regular safety audits, risk assessments and evaluations. While each organisation is different, here are some of the most common costs your company could incur from the implementation of a formal workplace health and safety program:

• PPE (Personal Protective Equipment)
• Drafting policies and safe work procedures
• Routine inspections
• New worker training courses 
• Ongoing training for staff
• Regular health and safety meetings
• Reporting and investigating incidents
• Continuous review of policies and protocols

How a health and safety strategy in the workplace helps you save

At Shoes For Crews, we place high emphasis on safety, comfort and support. Preventing injuries and accidents is also a fundamental aspect of our values. Investing in safeguarding workplace health and safety can result in valuable savings that can be of great benefit for multiple industries such as facilities, public transport, manufacturing and industrial plants. 

Here are 3 key ways your investment will pay off:

1. Avoid fines

The HSE is responsible for the issuing of notices to companies when legislation is breached. Fines can amount to as much as €20,000 and there is also the risk of an employee filing a claim if they are seriously injured.

By giving priority to workplace health and safety measures, you can create a culture that protects its staff and minimises the financial impact of potential incidents. When challenges are met head-on as a team, it will be easier to find ways to improve the levels of safety and minimise the risk of slips, trips and falls.

2. Reduce the long-term costs of potential severe injuries

Preventing accidents starts with a commitment from all levels of your organisation from upper-level management to front-line employees. Any time an injured worker needs to be replaced; your company will have to spend more money on retraining the new employee. This can end up becoming a significant expense over time, especially if your HR department had previously invested a lot of time and resources on training the original staff member.

Encouraging your staff to always be conscious of risks and to speak up when an incident occurs will further instill good health and safety practices across all departments. Rewarding them for paying attention to potential oversights and unsafe work areas is one of the best ways to reduce further costs and to positively promote workplace health and safety.

3. Prevent regular loss of working hours due to recurring health conditions

As we learned above, illnesses account for a large portion of on the job injuries. When an employee is not able to perform at their best, companies can suffer a loss of valuable working hours, which can result in missed opportunities and lost profit. Our safety shoes incorporate additional measures to safeguard workers against potential workplace health and safety hazards.

Footwear is not a one-size-fits-all item, so the right size, support and features need to be carefully considered. Give your team the durability and slip-resistant technology they can trust from Shoes For Crews. We believe that proper workwear can indeed play a vital role in preventing accidents and work-related injuries.

We hope this close look at the true cost of workplace health and safety helps you realise why investing in your employees’ well-being is a top priority. If you are looking for assistance with choosing a particular style, please reach out to one of our experts for answers tailored to your organisation’s needs. For more detailed information about our safety shoe line and its specific features, download our Catalogue.