Businesses in the UK are working to prevent, minimize or avoid workplace accidents. There are strict laws that govern worker safety. Many companies go above-and-beyond to keep their staff protected. more than 500.000 workers were injured at work during 2021-22. During this time, 123 workers lost their lives. This represents 0.02% of all workplace accidents.
Even though workplace injuries are rare, they can have a significant impact on the injured person as well as the company. The estimated cost of non-fatal workplace injuries exceeds the 7.5 billion pound. Costs to businesses include productivity, reputation, and money. Injured workers may suffer permanent damage and have to spend a lot of time recovering. Here are some hidden expenses that an employer may incur when an accident occurs on the job.
Reduced Productivity
The hidden costs of an accident at work are not directly calculable. However, they can be significant. Serious workplace injuries can lead to the termination of one or more employees. This may be temporary, or permanent, depending upon the severity of the injury. Some workers may return to their jobs but not perform as well. This shortfall in’manpower’ reduces operational capacity and leads to a drop in output.
Additional Administration
Your team or department may need to increase its operational power in order to deal with the negative effects of an incident at work. Reports need to be filed, HR procedures must be started, and civil action may be required.
This can add to the cost of a company as there may be more than one department devoted to managing accident outcomes. It is impossible to estimate the amount of work needed to examine and overhaul the health and safety policies when the accident was the result of a safety infrastructure gap.
Financial Compensation
Even the most obvious workplace injuries are difficult to calculate. In some cases, an accident or injury is the fault of a business. The injured party can seek compensation in civil litigation. It can be expensive in many ways. Legal fees, administrative costs and any settlements or compensation may also be included.
Hiring and training
An injury at work can have a long-lasting impact on the workforce, especially if it is severe enough to require an extended absence from the office or a complete resignation. This can create a huge void in the business operations, which will need to be filled with temporary staff or new recruits.
Staff turnover is a costly element of running a small business. Recruitment, marketing and onboarding are all costs. Then, there is the reduced capability that follows.
If an employee returns back to work after an injury, he or her may also need additional training in order stay up-to-date with new processes and laws. The company must pay for the additional training.
Client Disruption
All of these things can have a long term impact on an organization, especially in terms if clientele. The impact of a workplace injury that requires a temporary shutdown can be significant on the product of an enterprise. This could lead to the termination of long-term agreements.
Depending on circumstances, the reputation and the success of a company may be compromised. If the incident in question was covered by the media it could be interpreted as a company who does not care about its employees’ safety and well-being. In the worst-case scenario, this could result in a decrease of customer satisfaction and revenue.
Conclusion
Accidents at work are dangerous for both employers and employees. These accidents can disrupt many areas including hiring, training, administration, and more. Employers should always prioritize employee safety and take necessary steps to prevent workplace accidents.