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Occup Med (Lond) 2010 Haslam 484 90
Occup Med (Lond) 2010 Haslam 484 90
Aims To explore perceptions of injury and illness costs, the extent to which organizations monitor their
impact, attitudes towards this practice and views on using cost information in health and safety
campaigns.
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Methods Interviews were conducted with 212 representatives from 49 small- and medium-sized enterprises
(SMEs) and 80 large organizations from a range of industry sectors.
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Results Health and safety investments were driven by a range of factors, of which cost reduction was only one.
Human costs were also considered important. Injuries were perceived to represent a substantial busi-
ness cost by 10% of respondents from SMEs and 56% of those from large organizations. Most were
uncertain about the financial impact of work-related illness. No organizations had attempted to mon-
itor occupational illness costs. Injury costs had been assessed within 3 SMEs and 30 large organiza-
tions. Only 12% of SME representatives recognized the benefits of costing health and safety failures
and around half were unreceptive to the use of cost information in health and safety promotions. Two-
thirds of those from large organizations recognized some benefit in measuring costs, and over three-
quarters welcomed the provision of industry-specific information.
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Conclusions Provision of information that focuses solely on the economic implications of occupational injury and
illness may be of limited value and agencies involved in the promotion of health and safety should
incorporate a range of information, taking into account the needs and concerns of different sectors.
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Key words Business; cost; illness; injury; occupational; safety.
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been limited research to assess organizational perceptions organizations (.250 staff) from 10 industry sectors
of other costs incurred due to occupational injury and ill- (see Table 1).
ness. The HSE has encouraged organizations to measure Organizations were primarily sampled using Thomson
their losses, but little is known about levels of costing ac- Business Search Pro [23] (a database that can search for
tivity within UK businesses or attitudes towards this prac- organizations according to size and sector) and contacted
tice. In addition, most studies have focused on large via letters, telephone calls and emails directed to manag-
organizations, with little evidence to demonstrate the rel- ers with responsibility for health and safety. Other recruit-
evance of these issues within SMEs [22]. ment techniques included emailing members of regional
The objectives of this study were to explore factors influ- health and safety groups. Efforts were made to achieve
encing investment in health and safety, perceptions of costs wide geographical spread. To examine consistency of
incurred due to occupational injury and illness, the extent opinion within large organizations, interviews were typi-
to which organizations monitor these costs, attitudes to- cally conducted with one director and one health and
wards this practice and views on using financial informa- safety professional. Interviews within SMEs were typi-
tion in health and safety campaigns. The study also cally conducted with a director, in the absence of health
explored similarities and differences between SMEs and and safety personnel.
large organizations in a range of industry sectors. A semi-structured interview schedule was designed to
provide a standard framework that enabled the collection
interview schedule, while others arose spontaneously dur- tion, operational disruption (lost production/revenue),
ing the discussion (emergent themes). The data under impact on performance, management/investigation time,
each theme were summarized and illustrated with quotes. personal injury (PI) claims, higher insurance premiums
Reliability was ensured through review of the data by two and the cost of measures implemented in response to inci-
members of the research team. The work received Lough- dents. There were differences in the perceived impact of
borough University ethics committee approval. some costs, depending on the size and nature of the
respondents’ business (Quote 2).
Results
Quote 1
One hundred and twenty-nine organizations were
recruited (49 SMEs and 80 large) and 212 interviews ‘There’s strong recognition at the highest level that it needs
conducted. Respondents comprised 49 SME directors/ to be done . . . we don’t need to justify health and safety on
senior managers, 77 directors/senior managers and 86 financial grounds.’ [Financial director, medium-sized
health and safety personnel from large organizations. manufacturing company]
The number of individuals employed within the small
companies ranged from 6 to 49, with an average of 30 staff Quote 2
(Quote 4). A prominent theme that emerged was parti- Table 2. Summary of themes relating to perceptions of health and
cipants’ concern for the human impact of occupational safety costs
injury and illness, not only for the individuals concerned
Themes Sub-themes
but also for their colleagues. Human costs were often
perceived to be more important than business costs
Perceptions of the costs and Drivers for health and safety
(Quote 5). benefits for health and safety - cost of accidents/work-related
illness per se not the only
factor—other factors also
important
Quote 5 Other motivations:
- already established
‘If a person gets injured we automatically replace them commitments to continuous
with someone else, so the immediate cost is nil, but the cost improvement/public image/
to the individual is much greater and more important.’ compliance with regulation/
[Manager, small construction company] moral reasons
Perceptions of the cost of Typical injuries
Quote 6 workplace accidents Knowledge of actual costs
incurred
‘We say our sickness rate is terrible and it’s costing us a for- - limited knowledge of value of
performance indicators and to demonstrate the cost- ered important. Injuries were perceived to represent
benefits of interventions. Injury cost data had been a substantial cost by 10% of respondents from SMEs
applied in a range of different ways. In some cases, the and 56% of those from large organizations. Most organ-
information was only reported at board and senior exec- izations were uncertain about the financial impact of
utive levels. In others, it was presented to local manage- work-related illness and none had attempted to monitor
ment teams as a means of monitoring performance and these costs. Injury costs had been assessed within 3
benchmarking between operational units. Cost informa- SMEs and 30 large organizations. Only 12% of SME
tion had also been used for in-house training purposes. representatives recognized the benefits of costing health
Most felt their costing efforts had been beneficial in terms and safety failures compared with two-thirds of those
of raising awareness of the importance of health and from large organizations.
safety. In some cases, it had also been instrumental in The findings of this study demonstrate an appreciation
driving specific interventions. of the importance of health and safety within many organ-
The majority of SME representatives (88%) did not izations. This view was expressed in organizations of vary-
feel that their company would benefit from measuring ing size and industry sector and was supported by those
the cost of occupational injury or illness. Most reported from small companies where the cost of compliance with
that their business had an established commitment to health and safety legislation was perceived to be high. Al-
health and safety and that such information would though it was acknowledged that effective health and
Most felt that the effort involved would outweigh the ben-
efits, and many reported that as their company already Key points
had an established commitment to health and safety, such
information would not motivate them further. This pro- • Injuries were perceived to represent a substan-
vides support for Shearn [24], who suggests that small tial business cost by 10% of respondents from
businesses would not be receptive to the business argu- small- and medium-sized enterprises and
ment used to highlight the impact of health and safety fail- 56% of those from large organizations. Most
ures. Around two-thirds of those from large organizations were uncertain about the financial impact of
did acknowledge some benefit of monitoring occupa- work-related illness.
tional injury and illness costs, and around three-quarters • The vast majority of small and medium enter-
felt that it would be useful to receive cost information pre- prises did not recognize the benefits of measur-
sented as industry-specific case studies rather than broad ing injury and illness costs, whereas two-thirds
national figures. of large organizations recognized some benefit
While most SMEs in this study were aware of the po- in measuring organizational costs.
tential cost implications of occupational injury and ill- • A prominent theme was participants’ concern
ness, few had experienced them first hand. Therefore, for the human impact of occupational injury
the provision of information outlining the cost of health and illness, not only for the individuals con-
cerned but also for their colleagues.
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