Workplace Safety and Health – What Are the Costs?

Workplace safety & health should not be directed by cost, but unfortunately sometimes it is. Workplace accidents injuries or diseases sometimes have very serious direct cost associated. Sometimes the costs are not so direct. Indirect cost of not keeping a safe workplace can be the mountain beneath the iceberg tip. Here are some of these “costs” of workplace accidents, injuries or diseases for you to consider in your workplace.

Direct Cost

  1. For the injured person, there is almost always pain and suffering endured.
  2. Depending on the company, sick time, compensation time, etc, the worker may experience a loss of income.
  3. If the injury or illness is serious enough, there is a real possibility that the worker may lose their job.
  4. Doctor and hospital or medical bills are sure to be of major concern to both the worker and employee.

Indirect Cost

  1. Suffering endured by the workers family.
  2. The employer will likely pay for missed work days. Work is not performed but yet the employer has paid for it.
  3. Compensation payments and medical expenses.
  4. Lower moral or negative attitudes by other workers.
  5. Loss in productivity.
  6. Machinery repair or replacement costs.
  7. Retraining or replacing workers.

These are just a few of the cost so you have an idea of what has been lost due to workplace accidents. It is nearly impossible to determine actual cost of an accident, injury or work related disease. Most of the time the initial cost pales in comparison to the indirect costs. Some estimates have placed the indirect costs as ten times greater than the initial. Although you can’t put a cost on safety, know that the initial cost of not employing safety could just be the tip of the iceberg.


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