The nature of business management has changed considerably over the last decade, particularly with regards to the priorities of commercial leaders. Take health and safety, for example, which was once considered as a non-strategic cost that delivered nothing in the way of a viable financial return. The climate and prevailing attitude to workplace injuries has changed this outlook, however, with employees increasingly aware of their rights and able to make compensation claims at work.
The True cost of workplace Injuries: The Argument for prioritising health and safety
To understand this in simple terms, you just need to visit the Carrs Solicitors website and check out their compensation calculator. This not only enables injured employees to work out how much they may be eligible for if they make a compensation claim, but it is also offers employers an insight into their liability if they neglect the importance of health and safety. There are other metrics and figures that underline the importance of this, however, many of which will probably surprise even seasoned business-owners.
To begin with, the total estimated cost of workplace injury and illness peaked at £14.3 billion between 2013 and 2014. This is a huge amount of money that could be diverted to more strategic business endeavours, while it is also far in excess of the typical cost of implementing compliant health and safety measures. The direct cost of a single injury in the workplace is also estimated at £48,000, while the indirect liabilities (including legal fees and aftercare) increase to just under £200,000 on average.
Considering Long-term Profitability over short-term cost management
As a conservative estimated workplace injuries are believed to account for 10% of the average businesses profit margin. This is potentially a huge amount of money that can make the difference between success and failure for small ventures, so it is crucial that long-term profitability is prioritised ahead of short-term cost management concerns when it comes to health and safety.
So aside from the human cost of injuries and your duty as an employer to safeguard your employees’ well-being at all times, the true cost of workplace injury makes it impossible to ignore health and safety as a crucial investment in 2016. If you do, you may run the risk of financial ruin in the event of a serious workplace injury.