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Date PostedDecember 4, 2013

Financial Benefits of Safety

A record low rate of workplace injuries and ongoing improvements in scheme management have helped deliver a sound 2012/13 financial result for WorkSafe Victoria and similarly companies in Victoria undoubtedly also benefited from this record safety year.

Most employers already know that one of the greatest benefits of safety for a company is increased productivity. An increase in productivity also affects numerous other areas of the business, particularly financially.

Employers that invest in workplace health and safety can expect to reduce fatalities, injuries, and illnesses and this will in turn result in cost savings in a variety of areas, such as lowering workers’ compensation costs and medical expenses, avoiding penalties and reducing costs to train replacement employees and conduct accident investigations.

Reducing the number of injuries that happen on your job site means that work is not interrupted and a continuous flow of work means that the construction project is more likely to be completed on time and on budget.

Injuries are very costly to employers because an injury means time off work for the employee and for the employer this means either a certain amount of time one set of hands short or money and resources must be spent on finding and training a replacement worker to temporarily fill the workers shoes. If a fatality occurs, the consequences and financial loss for the company are even greater.

Another major benefit of ensuring safety on site is up to scratch is that it keeps authorities happy and this means they will stay off your back. Heavy penalties and fines can be the result of employers neglecting safety.

There is also the chance that a worker becomes injured during a larger scale construction accident for example one involving a crane or some other piece of heavy machinery. These accidents can damage or even destroy costly machines and cause destruction to the structures already completed on site. The destruction caused by heavy machinery can significantly set work back and cost construction companies and their clients thousands.

In addition, employers often find that changes made to improve workplace safety and health can result in significant improvements to their organization’s productivity and financial performance.

The greatest benefit of safety is that it promotes productivity. When workers are safe and feel safe they will work better, faster, more accurately than they would if they are constantly stressed and afraid of being injured. Those workers who are constantly stressed or afraid of being injured, are not working at their best and often these are the workers who make mistakes, which sometimes costs them their lives.

Those companies who care about the wellbeing of their employees are the ones who have the best reputation for corporate responsibility among investors, customers and communities. A better corporate image promotes good business and ultimately affects a company’s bottom line, positively.

 

Steven Asnicar is regarded as a leader across many fields of industry. In particular, his specialisation across the health, infrastructure, construction, resource and utility sectors has seen him successfully change the dynamics of these industries through the introduction of new strategic, marketing, training and technical frameworks. Steven works closely with industry peak bodies such as Safework Australia, Australian Logistics Council, National Advisory for Tertiary Education, Skills and Employment (NATESE) and the Council of Australian Governments in the development of new delivery standards and industry specific programs.

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