The healthy advantage
As a manager, you would undoubtedly love the luxury of being able to hire only healthy, cooperative, energetic team players who are never sick and never get hurt. All of us would rather work where safety and health are high priorities, where accidents are minimal and morale is high.
A healthy workforce means lower absenteeism and turnover rates—and that means higher productivity and profits for the business.
Many managers do not realize that only part of the major cash drain for work-related injuries or illnesses comes from medical costs—doctors, clinics, hospitals, therapists.
Other major costs, such as paying people not to work because they are unable to meet the requirements of their job, health insurance, compliance with ever-changing safety standards, legal fees and penalties for violations when things go wrong account for $50 out of every $100 you spend on work-related health and safety issues at your business organization.
Of course workers’ compensation insurance is not an optional benefit you offer to your employees. Unless your industry or business is exempt, you are required by law to provide workers’ compensation coverage even if you have only one employee.* Failure to comply with workers’ compensation law can result in fines, imprisonment, and the loss of the right to conduct business in the state.
Your workers’ compensation insurance rates are tied to the number of claims at your business and the cost of treating your injured employees. While vacations and breaks from work result in higher job satisfaction and better completion of tasks, research shows that absences for health reasons have the opposite effect.
Morale and performance suffer when persons miss work for health reasons, giving you yet another reason to do what you can to minimize the risk of work-related health problems at your business.
On the other hand, businesses that take health and safety seriously reap benefits at every level. At New Mexico State University, for example, staff believe that the safety policies for students and employees boost morale and improve productivity.
*Workers' comp programs are adminstered by individual states, each with its own set of requirements and programs.
Copyright © 2008 by Griffith Publishing
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NOTES...
"A healthy workforce is a reliable, dependable workforce," says David Johnson, human resources director for a 140-employee firm.
Businesses spend $170 billion a year on
costs associated with occupational injuries
and illnesses, expenditures that come straight out of company profits. (OSHA)
Injuries and illness related to the workplace are declining. BLS News.
Workers' comp insurance fees vary widely, sometimes with rates doubled in a neighboring state. Risk & Insurance.