Safety and health pays
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Safety and Health Pays. FACTS. Nearly 50 workers are injured every minute of the 40-hour work week Almost 17 of these workers die each day Injuries cost society $127.7 billion in 1997 - National Safety Council

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Safety and Health Pays

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Safety and health pays

Safety and Health Pays

FACTS

  • Nearly 50 workers are injured every minute of the 40-hour work week

  • Almost 17 of these workers die each day

  • Injuries cost society $127.7 billion in 1997 - National Safety Council

  • Nearly one-third of all serious occupational injuries and illnesses stem from overexertion or repetitive motion.

  • They cost our economy as much as $20 billion in direct costs and billions more in indirect costs

  • Only about 30 percent of businesses have established safety and health programs.


Safety and health pays1

Safety and Health Pays

What return on investment can good

Safety & Health management provide?

  • Improved employee morale

  • Decreased lost time

  • Fewer workplace injuries and illnesses

  • Lower insurance costs

  • Safety culture adoption


Safety and health pays

Safety and Health Pays

What return on investment can a bad

Safety & Health management provide?

  • Lost productive time

  • Time and cost to investigate

  • Cost of medical treatment

  • Cost of hiring and training replacements

  • Legal costs

  • Cost to replacement/repair of equipment


Safety and health pays

Safety and Health Pays

What return on investment can a bad

Safety & Health management provide?

  • Adverse effect on company image

  • Increased workers’ compensation rates

  • Loss of good reliable employees

  • Decrease in morale and productivity

  • Increased absenteeism


Safety and health pays

Safety and Health Pays

Estimated Cost Calculation of

Occupational Deaths, Injuries and Illnesses

Annual Number of:

Deaths x $910,000 = ________

Lost Work Day Cases x $28,000 = ________

Reportable Cases w/o Lost Work Days x $7,000 = ________

Total = ________


Safety and health pays2

Safety and Health Pays

Reducing the Costs of Accidents

  • $4 to $6 return for every dollar invested in safety and health


Safety and health pays3

Safety and Health Pays

Direct and Indirect Cost of Accidents

  • Direct Cost of Accidents

    • Medical, Indemnity (payments to employee)

  • Indirect Cost of Accidents

    • Down Time

    • Training replacement

    • Replace/repair damaged property

    • Time to investigate

    • Legal Fees


Safety and health pays4

Safety and Health Pays

Accident Costs and Impact on Sales

  • Average cost of 1 injury with days away from work is $1,500 to $2,000

  • Profit Margin of 2% (.02)

  • Average indirect cost 4 times direct

$2000 X 4 = $8,000

$8000 + $2000 = $10,000

$10,000 divided by .02 = $500,000


Safety and health pays5

Safety and Health Pays

Accident Costs and Impact on Sales

  • Average cost of 1 injury with days away from work is $1,500 to $2,000

  • Profit Margin of 5% (.05)

  • Average indirect cost 4 times direct

$2000 X 4 = $8,000

$8000 + $2000 = $10,000

$10,000 divided by .05 = $200,000


Safety and health pays6

Safety and Health Pays

Accident Costs and Impact on Sales

Type Injury Ave Dir $ Ave Indirect $ Total $ Sales Needed

3% 5%

------------------------------------------------------------------------------------------------------------

Amputation $21,718 $23,890 $45,608 $1,520,260 $912,156

Burn $3,846 $6,154 $10,000 $333,320 $199,992

Carpal T $8,305 $9,966 $18,271 $609,033 $365,420

Laceration $1,101 $4,955 $6,056 $201,850 $121,110


Safety and health pays7

Safety and Health Pays

SHARP

  • Decrease in ergonomic injuries

  • Drop in employee absenteeism

  • Employees feel their work areas are clean, comfortable, and safe

  • Company feels that they have become the employer of choice

  • It is noticeable by visitors (people external to the company)

  • Decrease in worker comp claims (employees chose to work)

  • Decrease in employee turn over

  • Safety culture develops


Safety and health pays8

Safety and Health Pays

VPP

  • VPP - 500 workplaces, representing 180 industries, save $110 million each year because their injury rates are 50 percent below the average for their industries

  • The longest running VPP site, a manufacturer with 600 employees, has sustained lost-workday case rates 73% below average for 15 years — preventing 600 injuries and saving an average of more than $1 million per year in direct and indirect costs.


Safety and health pays

Hazard I.D.


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