The intangibles in business are what keep owners and executives awake at night. We spend our working lives mitigating risk and measuring cost versus benefit.
So where does the cost of safety rate amongst these?
Safety in the workplace has become an increasingly prioritized quantity. Those that have been in business for a decade or more will know exactly how the landscape has altered over recent times. With this change has come a cost. So what is the return on investment for maintaining exceptional standards of safety? And how is your money best spent?
According to Safe Work Australia the cost for workplace injury and disease for the year 2012-2013 was a staggering $61.8 Billion dollars. That’s right, Billion. And at this point it is important to note that a lot of this cost is what is known as the ripple effect of injury and disease.
These ripple effects include those that you would expect, including…
• Medical costs
• Rehabilitation expenses
• Potential for fines or disciplinary action for employer.
But more importantly also include the underlying costs including….
• Overtime paid to workers to cover the loss of personnel.
• Investigation of incident costs.
• The stigma of a bad safety record for company and shareholders.
• Increased public scrutiny.
• Loss of employer of choice for the best new recruits.
The intangibles are even more far reaching for the injured employee with a rise in the instance of mental health struggles related to lack of mobility and the impact on the family in general. The family is also affected. The strain on the household is immense and has the ability to change the entire dynamic of the family.
The cost of inaction is far higher than the cost of being on the forefront of safety. Organizations that proactively engage in minimisation of workplace injury can reduce their employees’ health risks by up to 56%. (1).
So where do we start? A lot of businesses are of course aware of the need for solid corporate governance, which includes a fantastic commitment to the safety of their workers. The trouble we find as a third party with good access to numerous industries is dilution. Safety messaging is usually left to a leadership team or communications teams. The problem we see is that the message dilutes due to several factors:
• The difference between trainers and their presentations.
• LOTE employees who may need a different approach.
• The lack of updates on out-dated material.
• The lack of entertainment for the participants.
These factors are what make video such a great tool. A video specifically designed for your company and it’s safety plan pays dividends every time you hit play. Each member of your team will also get the exact same message delivery. Each member of your team will benefit from cost effective updates to the content as they become necessary. And the program can be made to your very unique specifications.
Thinking of this information from the point of view of your accountancy section is easy.
• Australia’s cost for injury and disease for 2012-2013 was $61.8 Billion.
• Australia has close to 12 million employed people.
• That’s over $5,000 for every employee annually.
So your return on investment for a beautifully created video on safety is simple. Use this equation:
W= Cost of video
X = Number of employees
Y= $5,000 (cost per employee)
X x Y – W = $$$$$Z
So as we go forward in a safe and orderly manner, why not drop us a line and find out just how much you can save by being proactive and dynamic with your safety messaging. Clients for our most recently produced custom safety videos include Toll Group, Chandler Macleod, Australian Pharmaceutical Industries, OI Glass, Australian Railways Association and CUB.
1. Thanks to the people at Welsey Corporate Health, Leighton Properties and Grosvenor Australia (2008), The future@work health report; Employees and their workplace.