If everyone claimed compensation for work-related stress in Australia, the estimated annual cost would be $83 billion

Lucinda Smith of Esteem People Management has made some excellent points about stress and mental health in her article – “The People Risk of Work-Related Stress“.  On determining the cost of mental stress she acknowledges authoritative government estimates but, significantly, states of the data:

“Although not fully exploring the issue of workplace stress because it only applies to accepted claims,…”

This is the core of much of the frustration in the OHS profession that injury and illness is always underestimated because data is based on workers’ compensation statistics.

Where Smith progresses the argument, though, is by comparing several important pieces of data.  Quoted in a Safe Work Australia report, Medibank Private estimated in 2008 that the direct cost of work-related stress was

“…$14.81 billion to the Australian economy, and $10.11 billion to Australian employers because of stress-related presenteeism and absenteeism.” (page 3 of the Safe Work Australia report)

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“Put the human being first”

One of the most contentious issues in safety management is the treatment of workers compensation claimants.  On 18 August 2014, a small qualitative research report into this area was launched in Melbourne.  The report, “Filling the Dark Spot: fifteen injured workers shine a light on the workers compensation system to improve it for others”* identified four themes in the workers’ stories:

  • a sense of injustice
  • a lack of control and agency
  • loss of trust, and
  • loss of identity.

These themes, or at least some of them, are increasingly appearing on the occupational health and safety (OHS) literature.  To establish a successful sustainable workplace culture, one needs to establish and maintain trust.  Workers also seem to need some degree of control, or at least influence, over their working conditions and environment.  Also workers, and managers, need to receive a fair hearing, what most would describe as “natural justice”.

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Book review: The Financial and Economic Crises and Their Impact On Health and Social Well-Being

Book Cover NavarreAny of the books written or edited by Vicente Navarro are worth serious consideration.  The latest book, edited with Carles Muntaner has the daunting title of The Financial and Economic Crises and Their Impact On Health and Social Well-Being but it is the content that is important.  The editors’ social class analysis may be unfashionable in some areas, or even anachronistic, but the perspective remains valid, as they write:

“…any explanation of the current crisis requires incorporating a social class perspective so as to understand the modus operandi of the economic-financial-political system.” (page 4)

The book though is about the effects of the crisis on health and well-being and there is much to learn.  Continue reading “Book review: The Financial and Economic Crises and Their Impact On Health and Social Well-Being”

WHS, performance indicators, annual reports and other thoughts

Macquarie University researcher Sharron O’Neill is traveling around Australia refining, through consultation and seminars, her research into Work Health and Safety (WHS) Due Diligence. In a Melbourne seminar this week O’Neill, and her colleague, Karen Wolfe,  provided thought-provoking discussions on three principal areas:

  • Due Diligence,
  • Performance Indicators, and
  • Reporting.

Below are some of my thoughts that they provoked.

WHS Due Diligence

WHS Due Diligence is still a poorly understood concept.  Part of the reason is that the major explainers of due diligence seem to be, predominantly, labour lawyers who, not surprisingly, emphasis the legal requirements and origins rather than the safety elements and application.  There are few safety professionals who are explaining due diligence; rather they are discussing OHS/WHS in the context of due diligence.

One colleague explained how an established organisation employed her as their first dedicated OHS professional around the same time as due diligence was being discussed  as part of the national OHS harmonisation process.  By looking through the company’s existing system of work,

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OHS is not all about covering one’s arse

iStock_000005779267_SmallIt is very common to hear people say that the core motivation for introducing or improving workplace safety management is to cover one’s arse (to protect oneself from various legislative and reputational exposures), be that the collective arse of management, the board and executives or the arse of the individual worker.  This is a fundamental misunderstanding of the intention occupational health and safety (OHS) laws and principles yet the fear of reputational damage is a strong motivator of change with which safety professionals should learn to work and, perhaps, exploit, particularly as the traditional methods for corporate embarrassment, the media, are declining.

The most pertinent research on reputation risk as a motivator for OHS change seems to come from the UK’s Health and Safety Executive in 2005. In a summary report on research into compliance, HSE looked at the motivations of employers for change.  It found that reputational damage was one of many motivators and that each was given around the same weight in deliberations but that

“Respondents cite newspaper reports covering serious incidents and requirement to advise customers of incidents as the best way of increasing risk of reputational damage, followed by a requirement to report health and safety in company reports. ” ( page 10)

This change catalyst relies on two increasingly fragile criteria – the media and annual reports.  The media has rarely reported on OHS issues unless the incident

  • has caused major disruption
  • involves a high profile individual or company
  • involves children
  • can be given a party political context.
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Australian company dumps triple certification as unnecessary

At a recent seminar an HSE Manager of a large Australian company revealed that the company has dropped its support of “triple certification” – external certification to safety, quality and environmental standards. This caused a murmur in the audience as external certification has long been seen as an unavoidable element (and cost) of operating a large business. The HSE Manager explained that the company had assessed all of the resources it provides for certification in light of the benefits it receives and determined that the company could still do well without the external certification.

Certification has been considered as a public and commercial statement of good business management.  Certification is also required as a minimum requirement to qualify for tenders for government works. But certification has also been seen as a costly and disruptive burden.  This perception has strengthened as new regulators have imposed compliance requirements that are usually satisfied through external or third-party audits.  This auditing complexity has sometimes been mentioned in the context of the “red tape” debate.

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Beyondblue’s latest research report is too narrow

Beyondblue has just released a report into the cost of mental health in the workplace prepared by PricewaterhouseCoopers (PwC) and called “Creating a mentally healthy workplace – Return on investment analysis“. The report is interesting but of limited use for those looking for ways to make their own workplaces safer and healthier with minimal cost.  The Beyondblue  media release claims

“… that Australian businesses will receive an average return of $2.30 for every $1 they invest in effective workplace mental health strategies.

The research, which looked at the impact of employees’ mental health conditions on productivity, participation and compensation claims, also found these conditions cost Australian employers at least $10.9 billion a year.”

The first claim looks attractive but achieving such a return is unlikely unless the company includes the following:

  • “commitment from organisational leaders,
  • employee participation,
  • development and implementation of policies,
  • provision of the necessary resources, and
  • a sustainable approach.” (page iv)

The best chance for the return on investment (ROI) will likely occur in a company that has an enlightened management, “necessary resources” and a leadership that is already likely to have mental health and a safe organisational culture on its agenda.  This is a rare combination which limits the application of the PwC report findings.

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