When an organisation takes steps to prevent workplace accidents from occurring, they also protect their bottom line. For investors, this is a positive implication of a company’s financial position, operational performance, and core competencies in mitigating risk and growing long term value. When looking at whether or not to invest, conscientious investors should carry out their due diligence and thoroughly screen a business’s health and safety policy and management system.
Productivity and profitability
There are also the productivity costs to consider. The majority of employees who have suffered an injury due to poor health and safety management will need to take time off work to recover. Not only will they be eligible for sick pay, but their employer may source a temporary replacement for their role, leading to additional costs for recruitment and training. Ultimately, long-term injury can lead to a reduced and less efficient workforce, resulting in an inability to deliver at full capacity. Business productivity will suffer and, in turn, profitability can be affected too.
Possible compensation claims
If an employee has an accident, they can claim compensation. An employee can claim compensation for multiple reasons, such as, the inability to work due to the injury. In addition, the employer may be liable to cover the employee’s legal fees if found guilty through negligence and this could be thousands of pounds.
In some cases, the employer can face prosecution and if the case ends up in trial, it will gain a lot of negative publicity. Often, a business will try and avoid this with a settlement offer as court will take up valuable time and a guilty verdict can lead to more severe punishments, such as, large fines or imprisonment.
A good safety culture engages employees
A crucial factor in finding a balance between workplace safety and productivity is promoting a safety culture. Studies show that the companies that develop a safety culture can reduce factory costs and boost productivity because they focus on eliminating errors that could trigger job accidents and hazards. The businesses that implement extensive training and safe job procedures, audit safety processes, and improve pre-work preparation can reduce expenses and improve productivity in the long run.
Health and safety helps to win work
When a business bids for work, especially on bigger projects in the public and private sectors, they will be asked about their health and safety record. Gaining health and safety accreditations, and providing the evidence that they have a proactive approach to health and safety, will help to win work. And winning work is essential for a successful business.
Good health and safety procedures don’t just safeguard employees and customers, they also cultivate an environment that provides a solid foundation for economic success. For more information on the business benefits of health and safety, please contact us here.