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The true cost and impact of workplace accidents on businesses and employees

By Louise Woodburn, KBC Partner: Risk Solutions

by Tia

Accidents in the workplace can have far-reaching consequences, affecting both businesses and employees. Recent industry statistics from the Federated Employers Mutual Assurance Company reveal that the categories of workplace incidents vary, emphasising the need for vigilance in hazardous environments. Approximately 33% of incidents involved employees being struck by objects; slips or over-exertions constituted 14%; motor vehicle accidents (13%) and falls from various levels (11%). Understanding the intricacies of workplace accidents requires acknowledging the shared responsibility of both employers and employees. The employer must establish a robust framework for Health and Safety in the organisation. Employees, with the guidance of Health and Safety Officers, are pivotal in implementing these safety measures and fostering a culture of workplace safety.

Mitigating risks: the hierarchy of control

Accident prevention necessitates a systematic approach. The hierarchy of control offers a strategic framework to eliminate risks through the implementation of administrative controls, the isolation of individuals from hazards, and the use of Personal Protective Equipment (PPE). Evaluating risks, providing adequate training, ensuring proper signage, and creating emergency response plans collectively contribute to a safer working environment. Here, competency and authorisation are critical, and it is essential to ensure that employees are not only trained but also empowered to carry out their roles safely.

The price tag of workplace accidents

The cost of workplace incidents extends beyond direct expenses such as medical bills. The Iceberg Principle suggests that 90% of the overall cost is indirect, encompassing factors like investigation expenses, downtime pay, and reputational damage, for which there is no insurance cover. Recent FEM statistics reveal that the average direct cost of a workplace incident in 2023 is approximately R73 000. Motor vehicle accidents incur an average cost of R144 000, while slips, trips, and falls average around R47 000.

Impact on employees extend beyond the physical

Employees bear the brunt of workplace accidents, in the form of financial, emotional, and psychological repercussions. With Injury on Duty (IOD) Leave covering only 75% of salaries, financial loss is immediate. Furthermore, emotional trauma can reverberate beyond the injured or a deceased employee, affecting morale and team dynamics. The cost of employing new staff, overtime payments, and production losses compound the impact, creating a ripple effect of consequences.

The role of continuous learning

Empowering health and safety officials with knowledge is pivotal in accident prevention. Continuous learning, tailored training programmes, and a comprehensive approach to education all contribute toward competency. A cost-effective solution for organisations is to employ the services of outsourced training providers. Professional providers offer a dynamic array of learning opportunities, from risk assessments to micro-learning modules, ensuring that safety education keeps pace with ever-evolving legislative requirements, and equipping companies to deal with new risks that arise with technological developments in the workplace.

A call for comprehensive action

Accidents in the workplace are so much more than their immediate physical consequences. Fatal, or non-fatal, accidents reverberate through the very fabric of the business and its employees. The financial, emotional, and operational consequences emphasise the urgency of adopting proactive measures. Employers must invest in robust training programmes, implement preventive measures, and foster a culture of safety. Here, the cost of prevention is minimal compared to the exorbitant price of negligence. By prioritising safety and investing in continuous learning, businesses can safeguard their most valuable assets — their employees — and ensure the long-term success of their operations.

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