productivity – Page 34 – SafetyAtWorkBlog

Double your money, invest in OHS

The corporate wellness advocates have been able to estimate the return-on-investment (ROI) for their programs but there has been little research on the return-on-prevention, until recently. In 2012 the International Social Security Association (ISSA) determined that, in microeconomic terms,

“…there are benefits resulting from investment in occupational safety and health… with the results offering a Return on Prevention [ROP] ratio of 2.2.”

This means that for every one dollar spent per employee per year the potential return is 2.2 dollars.

The report also found that OHS provides, amongst other benefits:

Better corporate image
Increased employee motivation and satisfaction, and
Prevention of disruptions.

But why bother costing harm prevention when there is already a legislative requirement to provide safe and healthy workplaces? Such a question usually comes from those whose understanding of OHS is principally compliance and who believe compliance equals safety.

The calculation of ROP, in the ISSA report at least, counters the belief that safety is always a cost with no economic benefit to the company. A positive ROP provides an opportunity to actively participate in the economic debate over productivity and, in some countries, austerity.

Kevin Jones

Increasing Production Performance Through Safety

Ten years ago, Randy DeVaul wrote several articles for the Safety At Work magazine, a precursor to this blog. His US perspectives were enlightening and he has agreed to contribute occasionally to the SafetyAtWorkBlog. Below is an article he originally wrote in 2004.

As safety professionals, we have all worked at “selling” safety to upper management through budget and fiscal expenditures, worker compensation costs, and other financial approaches. Meanwhile, our “sell” to production managers has been based on compliance issues with OSHA/MSHA standards. We have set ourselves up for an uphill battle between production and safety.

Though we missed the boat earlier to integrate safety and production together, the timing now could not be better. Helping our managers see the integrated picture between safety and production should be our focus with less emphasis on compliance. Think about it – getting people to do something “because OSHA (or MSHA) says so” is not very motivating. Helping to see how safe performance also impacts production numbers, employee morale, absenteeism, and productivity schedules in addition to personal quality of life has a much greater effect. Continue reading “Increasing Production Performance Through Safety”

OHS statistics sound good but do not reflect reality

SafetyAtWorkBlog has questioned the veracity of occupational health and safety statements by Victoria’s Assistant Treasurer, Gordon Rich-Phillips, previously. Early in January 2013, Minister Rich-Phillips stated that:

“Victoria’s workplaces had the safest year on record in 2012…”

Victorian businesses, workers and policy-makers would benefit enormously if the government were to focus on achieving independent accurate data of workplace injury, illness and business costs instead of cherry picking statistics for political gain. Continue reading “OHS statistics sound good but do not reflect reality”

Shorten’s Centre for Workplace Leadership is likely to ignore OHS

For some months Australia’s Workplace Relations Minister Bill Shorten, has been talking about establishing a Centre for Workplace Leadership. This presents an opportunity for practical progress on OHS but it relies on someone joining the dots of occupational safety, workplace health and productivity – a highly unlikely occurrence.

In December 2012, Shorten started looking for a provider of the Centre, a facility that he described as

“…a flagship initiative of the Gillard Government and will play an important role in supporting our aim to increase workplace level productivity and the quality of jobs by improving leadership capability in Australian workplaces…

He also said that

“This will not be another training company. The Centre will drive a broader Continue reading “Shorten’s Centre for Workplace Leadership is likely to ignore OHS”

Victorian Government refuses to release full costings of OHS laws

The Victorian Government has repeatedly claimed that new Work Health and Safety laws would cost billions of dollars to introduce. It has justified this political decision with a summary of a report produced by PricewaterhouseCoopers (PwC) in April 2012. SafetyAtWorkBlog applied for the full report under Freedom of Information (FOI) and was rejected.

The Department of Premier and Cabinet’s FOI Officer indicated that the full report existed but that it was not being released as the FOI Act

“…exempts from disclosure a document that has been prepared by a Minister or on his or her behalf or by an agency for the purpose of submission for consideration by the Cabinet.”

The rejection is difficult to understand as the government had already released a 34 page summary.

SafetyAtWorkBlog has been very critical of the summary report due to the amount of disclaimers, equivocations and selected data sources in the PwC report. The estimated costs have appeared in discussions about the Work Health and Safety laws in other States so the full analysis of the laws by PwC would be enlightening. It was hoped that the full report would provide additional background and context to discussing the “costs of safety” but that is not to be.

Kevin Jones

Australia’s psychosocial barometer provides strong evidence for policy and corporate change

OnlineMBA.com recently uploaded a video about “The True Cost of a Bad Boss“. It is a good summary of the spread of negative organisational and employee effects that can result from poor management poor understanding and poor communication. It is well worth remembering this spread when determining the best way to manage workplace safety and increase productivity.

Although the video is from the US, there is research evidence to support many of the points raised. In December 2012, Safe Work Australia released The Australian Workplace Barometer Report On Psychosocial Safety Climate and Worker Health in Australia, a report that has been largely missed by the Australian media. The report says that:

“A standout finding here is that depression costs Australian employers approximately AUD$8 billion per annum as a result of sickness absence and presenteeism and AUD$693 million per annum of this is due to job strain and bullying.” (page 6)

This is a significant impact on Australian business costs and, if one takes the OnlineMBA information concerning bad bosses, Australian bosses may need to undertake a considerable amount of self-analysis when lobbying for red-tape reductions and calling for productivity increases. Continue reading “Australia’s psychosocial barometer provides strong evidence for policy and corporate change”

Evidence exists of productivity benefits of OHS but no one is using it

Cover of 47workhev1 A lot of recent discussion of the impacts of workplace safety and productivity has centred on the Productivity Commission’s “Performance Benchmarking of Australian Business Regulation: Occupational Health & Safety” Report of 2010. However there was a 1995 report by the then-Industry Commission that can provide some broader context to the safety/productivity discussion. Recent evidence and research does not negate earlier reports and the safety/productivity debate should be considered over the longer time period, when there were different economic and political situations.

In 1995, the Industry Commission estimated the cost

“…to injured employees, their employers and the rest of the community of work-related injury and disease is at least $20 billion a year.” (page xiii)

(The March 2010 report stated the Australian Safety and Compensation Council

“…found the total economic cost of work-related injury and illness for the 2005-06 financial year to be $57.5 billion, representing 5.9 per cent of GDP.” Page 45)

The Industry Commission identified a ratio of costs associated with workplace injuries – 30-40-30:

“Around 30 per cent of the total cost

Continue reading “Evidence exists of productivity benefits of OHS but no one is using it”

Category: productivity

Double your money, invest in OHS

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Increasing Production Performance Through Safety

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OHS statistics sound good but do not reflect reality

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Shorten’s Centre for Workplace Leadership is likely to ignore OHS

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Victorian Government refuses to release full costings of OHS laws

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Australia’s psychosocial barometer provides strong evidence for policy and corporate change

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Evidence exists of productivity benefits of OHS but no one is using it

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