Now that you have this information, what will you do with it?.How much are injuries costing your company every year and what are you going to do about it?.An injury hurts production, lowers morale, requires excess administrative effort and ultimately removes money from the bottom line. Looking at an injury from a holistic perspective, we can see it not only affects the individual who got injured, but the entire company. For companies operating at a 10% profit margin, you’ll need an additional $1.2 million in sales to pay for the injury. On average, employers will spend $120,000 on each workplace injury. Using the numbers from direct and indirect costs, we canįind the real cost of a workplace injury. To be conservative (and for simple math), we’ll assume anĪverage ratio of 2:1 for indirect to direct costs. Certainly these ratios vary depending on the scope and magnitude of the incident, but in any case, the indirect costs far outweigh the direct costs. Now that’s an ROI we can get behind.)Īnother study focused on the construction industry found the ratio between indirect and directs to be 4:1 and in some cases as high as 17:1. (This study also found that, on average, every dollar spent on improving workplace safety returned $4.41. One study conducted by researchers from the Liberty Mutual Research Institute for Safety, Harvard University and University of Wisconsin-Oshkosh found that for every dollar spent on direct costs, about $2.12 would be spent on indirect costs. Thankfully for us, many researchers have observed this issue and identified methods for evaluating the indirect costs. These costs are expansive and can be difficult to measure.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |