Safety Management Madness

How expensive can a process recordable injury be to a facility?

The staggering costs…Improving safety processes in your company can dramatically reduce the number of lost-time and minor injuries and their direct and indirect costs which can destroy projected earnings.
The costs of worker injuries are huge: For example, in 2004, OSHA estimated the direct costs of a lost-time injury to be more than $25,000. The typical indirect costs are often 10 times the direct costs. Obviously, this means a single lost-time injury will flog more than $250,000 profits from your company bank deposits. Yikes! If your company’s profits are derived from a margin of 10%, you will need to earn at least $2.5 million to pay the cost of that single lost-time injury. Doing nothing to control lost-time injuries is utterly nuts.
The costs of all the recordable injuries can also be big, certainly when considering approximately 30 minor injuries occur for every lost-time injury. The direct cost for each recordable injury is more than $8,000, multiply by 10 times for indirect costs.  And that means by the time you’ve accumulated all those means one recordable injury costs around $80,000.
The ratio of 1 lost-time injury to 30 recordable injuries, then the total direct/indirect costs for just 1 lost-time injury and 30 recordable injuries[$250,000 (LTI) + $2,500,000 (30 Recordable injuries)] are nearly $2,75 million.  Worse yet, merely giving lip-service to safety is absolute madness.