When people speak about workplace accidents and injuries, their primary focus is on the affected employee. How they are affected is a vital component of the event. However, it can have far-reaching ramifications that go beyond that individual.
Companies feel the knock-on effects of serious workplace accidents and injuries in many ways. Some have financial consequences that could cause a company’s closure. Here are some ways that these events affect companies:
OSHA implications
Aside from workers’ compensation claims, an accident or injury must be reported to authorities for OSHA investigation. Occupational health and safety should be an employer’s primary concern when it comes to its workforce. Unfortunately, many companies do not take it seriously enough and can get into a lot of hot water.
Insurance lawyers prepare an injured employee’s claim, which might be subject to OSHA scrutiny to determine employer negligence. USAttorneys.com provides claimants with a list of specialist attorneys in their area to help with filing a compensation claim and ensuring that employers are held to account for their carelessness.
OSHA penalties can include fines and fees that can run into thousands of dollars. Companies without financial reserves will find that these punitive measures could put them out of business for good.
Lost production
Business typically comes to a grinding halt after a serious workplace accident or injury. Complete safety inspections must be undertaken before normal operations can resume. This downtime affects a company’s ability to keep up with orders, meaning that it is losing money for each minute that everything is at a standstill.
Most workplace accidents and injuries involve machinery, which might be damaged or broken during the incident. Additional time is needed to repair or replace this equipment to allow regular production to resume. Cash-strapped business owners will struggle to do this, which could lead to a financial crisis.
Reduced efficiency
With an employee out of action, others must step in to fill their role. This additional workload can be overwhelming for workers, who soon become fatigued and disengaged. Employers might see rising numbers of employees burning out, getting sick, or deciding to resign.
Even taking on a new staff member while an employee cannot work will reduce efficiency as the person is less experienced and will require training. During this process, business operations will be less efficient. Few companies can afford to have things running at less-than-optimal efficiency levels, affecting their product or service delivery.
Low employee morale
Employees who are expected to take on additional work or roles to cover for a injured colleague who is unable to work may soon feel demoralized. They are fulfilling extra duties without receiving financial compensation. This can lead to resentment among the workforce. Disgruntled employees are not efficient and productive.
After a severe injury or fatality, some employees might feel reluctant about going to work, fearing the same could happen to them. Others may feel traumatized by what they witnessed. Employers should establish counseling and other psycho-social support mechanisms to help employees cope and remain motivated.
Company reputation
Many clients might not want to associate themselves with a company that experiences frequent workplace accidents and injuries. The social optics of continuing to do business with that company are unfavorable, as it appears the clients do not care about employee safety. Another concern among clients might be whether the product or service quality is compromised.
Employee recruitment may also become challenging when potential candidates know the company’s reputation for workplace accidents and injuries. Existing employees may choose to leave after the company’s reputation is tarnished by repeated incidents. They would instead seek work elsewhere at another company, where their safety is prioritized.