With worker compensation claims costing Australian businesses around $1 billion annually, it makes sense to invest in high quality health and safety practices for your business, not only for worker safety but to sustain long-term productivity. We look at three main reasons why first-rate Workplace Health & Safety systems should be an essential part of your business plan.
Lower costs associated with serious workplace injury
A business should always have a risk management plan in place, especially when it comes to employee health and safety. Compromising on this can have multiple knock-on effects. On average, employees with serious injuries can be off work for up to 12 weeks, with some employees requiring even more time off than this. Serious injuries affect not only the individual and their families but, in terms of sick pay, can seriously impact a business’ revenue. Compensation claims can also send business costs soaring, along with any health care or treatment the business is legally required to provide.
Improved productivity and sustainability
It has been suggested that businesses investing in additional Workplace Health & Safety practices and systems tend to be more successful economically. Healthy and safe workplaces are more sustainable, this then leads to improved business performance and profitability. It also means fewer costs associated with:
- workplace accidents and deaths
- repairs to damaged equipment
- absenteeism and staff leaving
- employee productivity
Retain key personnel
Studies have shown that businesses that don’t take into account staff wellness are four times more at risk of losing key personnel within a year. Not only does the business take a hit in productivity if a good employees leaves, there are costs associated with hiring temporary labour. Attracting new staff may also be difficult if the business’ reputation has suffered as a result of serious injury. The new employee may demand a higher wage if health and safety practices aren’t up to scratch, and subsequent loss of productivity occurs if a new employee needs to attend training courses to get up to speed.
Overall, businesses would be wise to include high quality Workplace Health & Safety practices in future investment decisions, as the evidence points to a strong correlation between a safe and healthy workplace and how a business performs financially.