The costs and rates of workplace accidents

Thecosts and rates of workplace accidents

August12, 2014.

Costsand rates of work-place accidents

Work-placeaccidents present a major social costs problem in many work-placesinform of illness, injuries and affects both the employer and theemployees. Studies indicate that in average employers useapproximately $ 1 billion dollars every week as a direct cost toemployee compensations. These work-place costs are both indirect andindirect. In particular, direct costs involve direct costs incurredin compensating the worker through payment, hospital expenses and inother cases payment for legal services. Indirect costs, on the otherhand, encompass the costs incurred through employee trainings,investigations on the cost of accidents and in the implementation ofcorrective measures (Goetsch,2010).

Inaddition, indirect costs cover the lost productivity of the worker,repairs for the damages on the equipment’s and other properties aswell as related costs arising from the employee absenteeism and lowwork morale. The rates of work-place costs and accidents are asprescribed by OSHA according to the agency, falls from roofers andthe carpenters are the most-prevalent form of work-place accidents.Most common accidents happen in large organizations or firms involvedin the construction, healthcare, local authority and themanufacturing industries due to the nature of work environment and ahigh number of employees in these areas.

Similarly,small-sized and medium business also records costs in the form oflarge turnovers and loss in profit. Personal injury claims andmediation top the list of costs incurred at workplaces by employees,and this is followed by other costly effects as early retirement dueto injury, disability and persistent pain and medication on the partof the employee. The employers, on the other hand, incur great lossesdue to productivity losses, high turnover, repairs, legal suits andtime wasted in investigations (Goetsch,2010).Overall, there exist great physical, social, economic andpsychological costs that are incurred due to work-place accidents.

References

GoetschDavidL.(2010). OccupationalSafety and Health for Technologists, Engineers, and Managers, 7thEditionHardcover.USA, New Jersey: Prentice Hall Press.