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Employers can use the "$afety Pays" to assess the impact of occupational injuries and illnesses on their profitability. This program uses a company's profit margin, the average costs of an injury or illness, and an indirect cost multiplier to project the amount of sales a company would need to generate to cover those costs. The program is intended as a tool to raise awareness of how occupational injuries and illnesses can impact a company's profitability, not to provide a detailed analysis of a particular company's occupational injury and illness costs. Your local OSHA On-site Consultation Office can help small businesses identify workplace hazards and develop and implement an effective injury and illness prevention program.
For every dollar spent on the direct costs of a worker’s injury or illness (medical expenses and lost wages), it’s estimated that you, the employer, will spend at least as much again to cover the indirect and hidden costs. In most cases, you may spend 4-6 times more. Consider what one injury with lost workdays would cost you in terms of:
• Productive time lost by the injured employee.
• Productive time lost by employees and supervisors attending the accident victim.
• Clean up and start-up of operations interrupted by the accident.
• Time and cost for repair or replacement of any damaged equipment or materials
• Overtime costs when other workers must fill in.
• Fines for violating regulations.
• Cost of time spent on the investigation.
• Cost of completing paperwork generated by the incident.
• Time to hire or to retrain others to replace the injured worker until his/her return.
• Loss of skills of valuable employees.
• Low worker morale and perhaps less efficiency and increased absenteeism.
• Increased workers’ compensation insurance rates.
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