The costs of not having a health and safety plan

Keeping employees healthy and safe at the workplace should be any employer’s top priority – healthy workers are productive, happy and motivated. However, many businesses never take the time to formulate a proper health and safety plan – it seems like a waste of company time and resources. Unfortunately, this actually leads to increased business costs at the expense of employee morale and wellbeing. Whether you work at a small corporate office or a large manufacturing plant, it pays to have a health and safety plan. Here are the hidden costs of not looking after employees’ wellness.

1. Sick leave
Employees are entitles to a certain number of paid sick days per year – six weeks’ worth of working days in a three-year period. Every day that an employee takes off work for health reasons costs you twice – first for the daily wage or salary, and second for the lost productivity. If employees regularly become sick or injured due to their work and the absence of a health and safety plan, this could cost tens of thousands of rand in wasted revenue.

2. Breakages
Just as people can get injured at work, equipment and machinery can break due to misinformed staff or absent safety regulations. If employees are not taught how to operate, maintain and troubleshoot this equipment properly, they could easily fall into bad habits, cause unintentional damage or injure themselves. Replacing broken or worn out equipment frequently also adds to the costs of not having a solid and understandable safety plan.

3. Insurance costs
The absence of a health and safety plan impacts insurance costs in two ways. First, employers may be liable for large insurance claims if a worker becomes ill or injured on the job, especially if the employer was negligent or did not train the workers adequately in health and safety procedures. And this doesn’t take into account the administrative and legal costs of processing these claims. Second, if injuries and claims are frequent, the company’s insurance premiums could skyrocket, putting an added drain on working capital.

Creating an adequate health and safety plan need not be complicated or expensive. A good wellness plan must be clear, easy to implement, and supported with practical and physical tools, like regular training and protective equipment. Finally, always keep in mind that workplace health and safety is a joint venture between employers and employees – everyone must play their part to ensure a safe and comfortable working environment.