Health and Safety Update (June 2009)
Making Health and Safety Pay
The HSE has published advice to businesses on how they can
benefit financially from more efficient safety practices. This
guidance uses case studies to illustrate how health and safety
improvements can achieve significant cost savings, both in terms of
potential legal costs and uninsured losses.
Calculating the Cost of Safety Failings
The HSE explains that whilst improving health and safety
procedures may involve some cost, this outlay is offset by a
reduction in insurance claims, lower premiums and increased
productivity. In addition, uninsured losses have to be factored in
to the equation. Norwich Union Risk Services estimates that
uninsured losses from accidents in small firms can add up to £315
per employee, per year.
This guidance enables businesses to calculate the cost of
potential uninsured losses using data obtained from HSE
studies:
- total cost of accidents at work that result in absences =
average uninsured cost per accident (£2,097) x number of
accidents
- total cost of accidents at work requiring first aid = average
uninsured loss per accident (£33) x number of accidents
- total cost of accidents at work resulting in damage to
equipment (no injury) = average uninsured cost per accident (£141)
x number of accidents
Examples of Good Practice
The HSE explains that an organisation can make financial savings
by reducing:
- minor accidents
- downtime
- long-term illness
- absenteeism
- reported Injuries
- insurance claims and premiums.
Case studies are used to demonstrate how companies have tackled
safety problems and achieved a successful financial return. The
Port of London Authority achieved an 80% reduction in absenteeism
over a period of five years by using the services of an
occupational health doctor. Legoland Windsor introduced a 'no
blame' culture and integrated health and safety into the day-to-day
operation of the park which resulted in a 45% reduction in
accidents and an increase in staff loyalty.
The St Regis Paper Company reduced employee insurance claims by
73% after employing a consultant to develop management systems and
working with the trade union to improve employee relations. This
same company also saved £100,000 a year over the past five years by
reducing days lost due to absenteeism, accident investigation and
downtime, through a combination of improved safety training, the
fitting of machinery guards, the appointment of safety
representatives and working with the HSE and trade union.
Security and logistical support service specialist to the
construction industry, Wilson James, saved £145,000 in 10 months by
installing an on-site medical centre to save staff having to go to
hospital for first aid, 'MOT' checks and health advice.
Risk Assessment
This guidance also features advice on the five step risk
assessment process on the basis that determining the hazards in a
business will identify potential risks to the 'bottom line'. The
procedure involves:
- identifying the hazards
- determining who might be harmed
- considering the adequacy of measures in place to control risks
and decide whether more can be done to control the identified
risks.
- recording the risk assessment findings
- constantly reviewing and updating hazard precautions.
The document is available at
http://www.hse.gov.uk/betterbusiness/large/hsebooklet.pdf
Please read legal information.