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Cost of workplace injury
Workplace injuries affect not only the workplace; they have far reaching effects into personal life. The costs of workplace injury can be divided into 4 areas:
- human
- social
- economic, and
- organisational
The costs can directly or indirectly affect the organisation.
Direct costs
- incapacity payments for lost earnings
- medical costs
- rehabilitation costs
- property damage
Indirect costs
- time lost from work by the injured employee = lost productivity
- loss of skills, experience and knowledge
- cost of recruitment, replacement and training
- increased workload pressure and uncertainty for co-workers
- higher risk of injuries to other staff and lowered morale
- absenteeism, turnover, workplace conflict
- the cost of replacement equipment
- damage to the organisation’s reputation as an attractive workplace
- cost of investigation reports
Incident and injury rates in NSW are at their lowest level in 18 years, and this can be directly attributed to the increase in understanding by organisations that workplace injuries and fatalities are preventable through the use of:
- awareness, identifying hazards and risks;
- training, following safe work methods and participating in safety training;
- design, using the right equipment.
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