Transcript Leading by Example

THE COST OF
HEALTH AND SAFETY
PETER CORFIELD,
DIRECTOR GENERAL
THE NATIONAL ASSOCIATION OF STEEL SERVICE CENTRES
OCCUPATIONAL HEALTH AND SAFETY
ENCOMPASSES SOCIAL, MENTAL AND PHYSICAL WELLBEING OF
WORKERS
SUCCESSFUL BUSINESSES HAVE IN PLACE:• COLLABORATION
• PARTICIPATION
• ENGAGEMENT
WITH EMPLOYERS & ALL EMPLOYEES FULLY INVOLVED
PETER DRUCKER
“THE FIRST DUTY OF BUSINESS IS TO
SURVIVE….
…THE GUIDING PRINCIPLE OF BUSINESS IS NOT
MAXIMISATION OF PROFIT BUT
AVOIDANCE OF LOSS”
COST OF POOR HEALTH AND SAFETY AT WORK
HSE STATISTICS (2010/11)
• 1.2 MILLION WORKING PEOPLE SUFFERED FROM WORK RELATED
ILLNESS.
• 26.4 MILLION WORKING DAYS WERE LOST TO WORK RELATED
ILLNESSES AND WORKPLACE INJURIES (EXCLUDING CANCER).
• 200 PEOPLE ARE KILLED AT WORK IN THE UK EACH YEAR (EXCLUDING
TRAFFIC INCIDENTS).
COST OF POOR HEALTH AND SAFETY AT WORK
CONTINUED…
• WORK RELATED HEALTH AND INJURY COST THE UK £14BN PER
YEAR.
• HALF OF COSTS ARE FUNDED BY INDIVIDUALS, THE REMAINDER IS
SHARED BETWEEN EMPLOYERS AND GOVERNMENT.
• BUSINESSES CAN INCUR FURTHER COSTS WHICH RELATE TO
UNINSURED LOSSES AND LOSS OF REPUTATION.
BENEFITS OF GOOD HEALTH AND SAFETY
ADDRESSING HEALTH AND SAFETY SHOULD NOT BE A BURDEN.
IT PROVIDES OPPORTUNITIES FOR BENEFITS TO BE REALISED,
INCLUDING:•
REDUCED COSTS/RISKS
•
EMPLOYEE ABSENCE/ TURNOVER RATES ARE LOWER
•
ACCIDENTS ARE FEWER
• THREAT OF LEGAL ACTION IS MINIMISED
•
INCREASED PRODUCTIVITY
BENEFITS OF GOOD HEALTH AND SAFETY
CONTINUED…
• EMPLOYEES ARE HEALTHIER, HAPPIER AND MORE MOTIVATED
• ENHANCED REPUTATION
• INCREASED CORPORATE RESPONSIBILITY TO:-
• INVESTORS
• CUSTOMERS
• COMMUNITIES
• IMPROVED STANDING AMONG SUPPLIERS/PARTNERS
DIRECT COSTS OF ACCIDENTS & INCIDENTS
THESE ARE NORMALLY TANGIBLE, MEASURABLE AND INCLUDE:•
DAMAGE TO PREMISES, PLANT OR EQUIPMENT
•
SICK PAY
•
OVERTIME TO COVER INJURED PARTIES
•
FINES
•
EMERGENCY/ ALTERNATIVE SUPPLY ARRANGEMENTS
•
CLEANING SITE/FACILITY
INDIRECT COSTS OF ACCIDENTS & INCIDENTS
THESE ARE OFTEN IN INTANGIBLE, MORE DIFFICULT TO QUANTIFY AND
INCLUDE:-
•
LOSS OF EMPLOYEE SKILLS AND WORK OUTPUT
•
LOSS OF OUTPUT DUE TO DOWNTIME TO UNDERTAKE INVESTIGATIONS
•
COST OF INVESTIGATION
•
TRAINING COSTS FOR REPLACEMENT OPERATORS
INDIRECT COSTS OF ACCIDENTS & INCIDENTS
CONTINUED…
• INCREASED INSURANCE PREMIUMS
• LEGAL COSTS, COMPENSATION CLAIMS
• WORKPLACE MORALE
• EFFECT ON SALES
• LOST ORDERS REPUTATION
WORK RELATED ACCIDENTS & DISEASES ARE COSTLY
THE EFFECTS ON THE LIVES OF EMPLOYEES AND THEIR FAMILIES
INCLUDE:-
• THE PAIN AND SUFFERING OF INJURY/ILLNESS
• POTENTIAL LOSS OF INCOME
• JOB SECURITY
• HEALTH CARE COSTS
• COMPENSATION PAYMENTS
COSTS TO EMPLOYEES
(2010/1011)
WORK RELATED ACCIDENTS & DISEASES ARE COSTLY
DIRECT COSTS TO EMPLOYERS CAN BE ENORMOUS, THEY INCLUDE:-
• PAYMENT OF WORK NOT UNDERTAKEN
• MEDICAL AND COMPENSATION PAYMENTS
• REPAIR OR REPLACEMENT OF DAMAGED EQUIPMENT/PROPERTY
• REDUCTION OR TEMPORARY HALT IN PRODUCTION
WORK RELATED ACCIDENTS & DISEASES ARE COSTLY
DIRECT COSTS CONTINUED…
• POSSIBLE REDUCTION IN QUALITY OF WORK
• NEGATIVE EFFECTS ON MORALE OF WORKFORCE
• INCREASED TRAINING AND ADMIN COSTS
• INCREASED INSURANCE PREMIUMS
WORK RELATED ACCIDENTS & DISEASES ARE COSTLY
INDIRECT COSTS FOR EMPLOYERS INCLUDE:-
• REPLACING THE INJURED PARTY
• TRAINING AND TIME TO ADJUST FOR NEW EMPLOYEE.
• TIME TAKEN FOR NEW EMPLOYEE TO ACHIEVE PRODUCTIVITY
LEVELS OF EXPERIENCED STAFF.
WORK RELATED ACCIDENTS & DISEASES ARE COSTLY
INDIRECT COSTS CONTINUED…
•
MANAGEMENT TIME TO UNDERTAKE OBLIGATORY INVESTIGATIONS,
WRITING REPORTS AND FILLING IN FORMS.
•
ACCIDENTS GENERATE NEGATIVITY AND CAN INFLUENCE LABOUR
RELATIONS
•
POOR HEALTH AND SAFETY CAN RESULT IN POOR PUBLIC RELATIONS.
COSTS TO EMPLOYERS
(2010/2011)
THE IMPACT OF ABSENCE FROM THE WORKPLACE
DIRECT CONCERNS:• PAYMENT OF SALARY FOR ABSENCE
• OVERTIME PAYMENTS REQUIRED TO COVER WORKLOAD
• LOSS OF OUTPUT/LOST ORDERS
THE IMPACT OF ABSENCE FROM THE WORKPLACE
INDIRECT CONCERNS:• TIME TO GET REPLACEMENT “UP TO SPEED”
• RECRUITMENT OF TEMPORARY/REPLACEMENT STAFF
LONG TERM ABSENCE EQUATES TO 80% OF ALL ABSENCE
COSTS
ARE YOU INSURED?
SOME CASES ARE COVERED BY INSURANCE:•
•
•
EMPLOYERS LIABILITY
PUBLIC LIABILITY
VEHICLES, PLANT AND EQUIPMENT
A LARGE PROPORTION OF COST CANNOT BE RECOVERED. SUCCESSFUL
CLAIMS SUBJECT TO EXCESS CLAUSES.
INDIRECT COSTS CAN BE 10/40 TIMES DIRECT COSTS AND ARE
NORMALLY UNINSURED.
THE COST OF HEALTH AND SAFETY
SUMMARY…
POOR APPROACH:
•
TANGIBLE/INTANGIBLE ISSUES
•
DIRECT/INDIRECT COSTS
GOOD APPROACH:
•
FULL ENGAGEMENT OF WORKFORCE
•
LOSS (AVOIDANCE) AND PROFIT OPPORTUNITIES