Safety programs cost time and money. But the investment in workplace safety can only really be justified against the cost of the absence of safety.

Does your organization really appreciate how much safety incidents really cost your organization? If they don't, this is your opportunity to tell them. And be the one who really gets the true cost of incidents - and therefore the true value of your safety program.

The headline figure is often seen as the 'compensation payment'. But safety incidents carry a number of direct costs, that are not always fully recognized.

They include:

FOR THE EMPLOYEE

• Lost wages and overtime
• Doctor and hospital bills

FOR THE EMPLOYER

• Medical bills and workers' compensation claims
• Legal costs
• Insurance costs
• Property damage costs
• Wages being paid for a sideline worker

There are also a number of indirect costs. They are less obvious, but they can still be seen on the bottom line after every safety incident.

For example:

INDIRECT COSTS FOR THE EMPLOYEE

• Physical pain and suffering
• Mental anguish
• Lost time with family and friends
• Loss of productivity on and off the job
• Relationship strain

INDIRECT COSTS FOR THE EMPLOYER

• Loss of a valued employee
• Loss of productivity
• Replacing the lost worker (e.g. hiring and training costs)
• Damage to equipment or tools
• Time it takes to handle the injury claim
• Decrease in employee morale over the loss of an employee

 Next Steps

But what can you do with this information? Use it to help your organization get a better sense of how much a safety culture can save you - and therefore how much you should be investing.

And find out more by subscribing to further useful information from Caterpillar Safety Services - gems of advice and valuable information that can help you make your organization a safer AND more profitable place to work.