You are aware that job-related injuries and illness are expensive, due to medical expenses, lost days on the job, and insurance costs. But, did you know that as much as nine-tenths of the total cost of a workplace injury or illness is a hidden cost?
Let’s delve deeper into the direct and indirect costs and see why preventing workplace injuries and illness makes sound fiscal sense.
Direct costs encompass workers' compensation payments, medical expenses, and costs for legal services.
Indirect costs include training replacement workers, accident investigation, implementation of corrective measures, lost productivity, repairs of damaged equipment and property, and costs associated with lower employee morale and absenteeism.
It is also important to note the costs both to society and to your company’s reputation. What are the potential ramifications? Here are just three:
- A strain on local resources, e.g. caregivers, both family members and outsiders, medical specialists
- Potential new hires shying away from accepting positions with your company
- Consumers hearing about the workplace injuries and deciding to avoid your company’s products or services.