We all know the direct costs of a work accident, but how much does a workplace injury really affect your company? Here are a few indirect costs of an employee getting hurt on the job:

1. Lost Productivity

   When a workplace injury occurs, it is the responsibility of other workers to ensure that he/she receives the necessary medial attention (whether it means providing first aid or calling an ambulance). Work will be disrupted to ensure that the injured employee receives proper care.

2. Overtime Hours

   The job still needs to get done when an employee is injured. Employers will often need to arrange for overtime to ensure that projects are still completed on schedule.

3. Internal Investigation

   Steps must be taken to determine the cause of an employee injury and what preventative measures can be taken to ensure it doesn’t reoccur. It is an employer’s responsibility to conduct an internal investigation when an injury occurs in the workplace. If necessary, a company health and safety representative will be required to lock out/tag out equipment, replace/repair equipment, and deal with authorities such as labour boards and workers’ compensation programs.

4. Lower Staff Morale

   The concept of site safety is severely damaged when someone gets hurt on the job. Coworkers of an injured employee are likely to experience diminished morale if the safe working conditions of a job are compromised.

5. Administration Costs

   We all know that when someone gets hurt on the job, there are numerous forms to be completed, policies to be updated, and reports to be posted. The administrative cost of an accident is one that is costly, but often forgotten in terms of a direct result of an accident.

6. Damage to Reputation

   A company’s reputation in the community as a safe contractor can be damaged when an employee is injured at the workplace. This may affect company sales.

7. Rehiring/Training Costs

   If the employee is unable to return to work within a short time period, his/her position is often required to be filled in order to adhere to project schedules. The cost to hire or train an existing employee (orientation, required certifications, etc.) is a necessary cost.

 

It pays to be safe!