In addition to their social costs, workplace injuries and illnesses have a major impact on an employer's bottom line. According to the Occupational Safety and Health Administration (OSHA), it has been estimated that employers pay almost $1 billion per week for direct workers' compensation costs alone. Addressing safety and health issues in the workplace can certainly save you money and protect your bottom line.It is important to know how these numbers affect your business. Those expenditures for on-the-job injuries and illnesses come straight out of your company’s profit. In general, workers’ compensation only covers about 27 percent of costs of injury or illness. To emphasize the importance of safety and health programs in your workplace, educate employees on how occupational injuries directly affect them.
When workers stay healthy, the direct cost savings to your business include the following:
- Lower workers' compensation costs
- Reduced medical expenditures
- Smaller expenditures for return to work programs, including job accommodations for injured workers
- Fewer faulty products
- Less money spent on overtime benefits
Safety and health programs also lead to reductions in indirect costs for the following reasons:
- Increased productivity
- Higher-quality products
- Increased morale
- Better relations between management and employees
- Reduced turnover
- Better use of resources
Protecting your employees on a daily basis is crucial to the economy, our communities, fellow workers, their families and most importantly, to your company. Promote safety and health programs to ensure success.
The following are reasons that employees and their families also benefit from safety and health programs:
- Lack of injury helps employees maintain a steady income
- Injuries do not hinder family life
- Good health leads to less stress
Simply put, protecting employees properly is crucial to the economy, our communities, fellow workers and families. Safety and health programs allow your employees to prosper and your business to thrive.
OSHA has pledged to work with employers that are committed to safe and healthful work practices to prevent loss. However, you must take an active role in promoting safety—educate your employees on required OSHA practices and teach them to value safety by setting a positive example.
Your employees are an investment, and as with any investment, it is in your best interest to protect them. Focusing on safety and health will benefit your business in the short term as well as help you avoid possible losses in the future.
This article was adapted from Zywave. The information provided is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Readers should contact an insurance professional for appropriate advice concerning their needs.