Man-Hours Lost Every Year Due to Accidents Reviewed by Momizat on . When assessing safety risks as a manager in a high-risk industry, many of the factors contributing to the analysis involve cost. What will be the loss or gain a When assessing safety risks as a manager in a high-risk industry, many of the factors contributing to the analysis involve cost. What will be the loss or gain a Rating: 0
You Are Here: Home » Insurance » Man-Hours Lost Every Year Due to Accidents

Man-Hours Lost Every Year Due to Accidents

When assessing safety risks as a manager in a high-risk industry, many of the factors contributing to the analysis involve cost. What will be the loss or gain associated with given safety risk? Particularly when a company has multiple risk hazards and potential audits from OSHA in the near future, managers’ conduct a risk-assessment analysis.

Although I believe human life can’t be assigned a monetary value, most high-risk industries factor lawsuits, fines, and customer losses into the safety factor equation.

Would we rather take the risk and potentially cause a fatal accident for one or two workers, causing up to $2 million in retribution, or should we fix the faulty equipment for $5 million and save the workers at risk?

Executives actually make these decisions (claiming to use the utilitarian approach) for the sake of the company’s shareholders. In the past, industries like heavy construction and aviation have been blamed for gambling with workers’ and consumers’ lives in order to keep costs low and profits high.

One of the most overlooked statistics, when executives make risk-based decisions, is loss of worker productivity. In addition, worker compensation or sick leave may be granted in safety cases, causing productivity loss and increased labor costs on top of potential lawsuits.

Using the proper safety management software and training procedures will allow your company to understand risks more effectively and make decisions quickly and concisely for the company and workforce team. Below are some of the statistics to keep in mind when making decisions about temporary worker losses.

construction accident

Work Accidents & Lost Labor

Opportunities are Great – Work accidents leading to physical or mental occupational injury occur more often than most professionals would like to think. In fact, more than 330 million accidents happen on the job each year, with around 2.3 million deaths occurring from those accidents. Due to the widely accepted fact that most accidents arise from unsafe behavior and/or unsafe conditions, worker productivity losses can have obvious correlations with workplace safety.

More Than Just Man-hours – As explained before, employers want to implement suitable measures to prevent accidents in the workplace for a number of benefits. Workers become more efficient on the job and compliance builds a better reputation amongst partners, suppliers, and customers — ultimately reducing costs and enforcing positive branding. In addition, accidents not only lead to direct production loss, but also long-term labor utilization costs with high turnover and impacts on morale, and therefore production.

Understand the AR – The AR is a safety equation used by labor statistics organizations for the benefit of correlating lost productivity with worker injury. The equation, also known as the Accident Rate, relates the number of working days lost per employee each year to the hours worked. The Health and Safety Executive (HSE) website is a great resource for benchmark statistics and comparative analytics for managers. Many of the statistics include graphs and summarizations of data, highlighting trends in previous safety data.

Consistent Man-Hours Lost – Although lost workdays have not increased dramatically over the last five years, the number hasn’t decreased either. Work-related illnesses have consistently contributed to 25-30 million days lost per year for nationwide industries.

Since the turn of the century, work-related illnesses have been more abundant than workplace injuries, contributing to approximately 80% of workdays lost. Although both illness and injury accidents decreased since 2000, last year more than 35 million days were lost through industries. This number is an increase of approximately 2 million from 2011/2012 consensuses consensuses workdays lost. Although both illness and injury accidents decreased since 2000, last year more than 35 million days were lost through industries. This number is an increase of approximately 2 million from 2011/2012 consensuses

Imagine what American industries could do with all of the lost production and money from illness and injury incidents in the workplace. With over 280 million labor hours lost, the monetary equivalent to that must undoubtedly upwards of $4.2 billion.

Include health insurance, lawsuit compensation, and training costs into the mix, and you’ll see that keeping people on the job is imperative to American business. The inherent value, as well as the additional insight and oversight from regulatory bodies like OSHA, have seen the rise of businesses who do no other work than to assist companies in mitigating risks and loss of production efficiently. Websites like www.ecompliance.com showcase some of the solutions have have been developed due to advances in technology and training methods.

About the author:

Matthew Hall is a freelance writer and professional student who contributes articles and advice on a variety of issues affecting the business world and the challenges of the business and process management.

About The Author

SEO Cunsultent

Muhammad Aamir is an avid learner and online marketing consulting. Including guest blogger, blog posts sailing and link building. Social Profiles: Twitter, Facebook, Google Plus Contact: muhammadaamir2013@gmail.com

Number of Entries : 298
Scroll to top
Advertise with my Blog shared on Business Blogs