The Cost Of Workplace Injury: Why Training is Important

In 2015, the Ministry of Labour, Immigration, Training and Skills Development gave out over $5.7M in fines to companies for failing to provide safety instruction and training, resulting in workplace injuries. Click here to see how ACUTE helps staff work effectively and safely by empowering workers and supervisors to be champions of health and safety awareness and excellence. When looking at the cost of workplace injury it is imperative to differentiate between direct costs and the sometimes surprising indirect costs related to injuries. Yet the bottom line remains is that injuries can be avoided with the right training and equipment.

Avoid Workplace Injury by using ACUTE’s Industry Proven Employee Training Checklist

What are the Costs of Workplace Injury?

In a previous article, we discussed why health and safety training is important and the costs of neglect. If proper training and practices are not in place, companies may face increased costs for:

• Retraining employees – Training is the main defense against workplace injury and, if not provided by an approved and effective trainer, can result in repeats of the original safety issue. Companies can ensure they provide the right training the first time or risk incurring twice the cost and additional setbacks.
• Replacing broken equipment/environmental clean up – Harm isn’t limited to individuals.  There are also costs associated with replacing damaged equipment and with the management of water and air pollutants to avoid further legal or regulatory costs.
• Loss of employee productivity –  Both short and long-term productivity may be impacted by unsafe working conditions or limited awareness of healthy and safety hazards.  The Workplace Safety and Insurance Board (WSIB) reported in 2014 that employees were off work for an average of 7.5 days one month after an incident.
• Indirect costs (insurance, legal, administrative) – In the short video below by ERI solutions, it is estimated that indirect costs of workplace injury can be 7x more costly than direct costs (i.e. medical bills and loss of work).  This includes increased insurance fees, legal fees, and administrative time in handling claims with WSIB or other agencies.
• Regulatory penalties – Regulatory fines are incurred when employers are found to be negligent in adhering to regulatory requirements. In 2015, employers were fined over $5.7M for violations of Ministry of Labour, Immigration, Training and Skills Development regulations.

Before moving on to other costs of workplace injury, this video provides an overview of the cost of employee injury as well as non-compliance (USA).

• Damaged public image and consumer confidence – Employers operate alongside communities, families, and individual lives, all of which are impacted when incidents occur. Employers continue to face the repercussions of workplace incidents years afterward, from the BP oil spill to Imperial Metals’ mine disaster.
• Decline in company morale – Many kinds of work expose employees to a degree a risk, but this risk profile is less prominent in the minds of employees prior to an incident.  Having more than one incident within a team or department can be devastating to employee morale or job satisfaction as employees feel less safe and protected by management.

Training is crucial for any employer who looks to manage health and safety for their employees. ACUTE offers comprehensive training for staff to prepare for and be proactive against health and safety issues.

“We have relied on ACUTE for years to train our staff and keep them safe on the job site.”
– Bob, Mill Wrighting Company

What are the Legal Requirements of Health and Safety for Employers in Ontario?

As noted, in 2015 employers were fined over $5.7M for violations of Ministry of Labour, Immigration, Training and Skills Development regulations. These fines were largely due to counts of negligence in meeting the stipulated legal requirements for training within the Occupational Health and Safety (Act, R.S.O. 1990, c. O.1). Based on our understanding, the following training imperatives should be a priority for employers:

• Health and safety representative(s) are to be trained to allow them to effectively serve in their roles.
• Workplace employees who are not on a JHSC (Joint Health and Safety Committee) are to be trained to carry out duties delegated by a JHSC.
• Workers exposed or likely to be exposed to hazardous materials or physical agents are to receive training
• Information is to be provided to government inspectors on content, frequency, and the manner of instruction of any training programs offered.
• Health and safety awareness training is to be completed by every worker and supervisor.

What Training Should Businesses Focus On?

The most effective solution for avoiding injury costs is to provide proper training and a comprehensive health and safety program. Organizations must consider providing a minimum health and safety awareness training (worker / manager) and joint health and safety committee training (JHSC). Awareness training provides employees with the tools and understanding to work safely and know their rights. The JHSC training provides your team with expert guidance and a framework to develop, maintain, and extend a health and safety program at your workplace.

Based on WSIB’s  annual statistical report on the claims filed , here are common workplace occupations and injuries, along with recommended training to ensure your team can continue working safely: