How Much Work-Related Injuries Really Cost

According to the Bureau of Labor Statistics (BLS), there are an estimated 3 million nonfatal work-related injuries reported each year in the U.S. While new laws and tougher regulations have allowed this number to decline over the years, it remains an issue that all employers must address. Turning a blind eye to the possibility of worker injury is a serious mistake than can end up costing you in more than one way.

When speaking about the financial costs of work-related injuries, they can be broken down into one of two different categories: direct and indirect. Direct costs -- as the name suggests -- are more obvious, whereas indirect costs are more discreet. 

Direct Costs:

• Worker's comp
• Legal case management
• Treatment care
• Doctor's visits
• Medicine
• Rehabilitation

Indirect Costs:

• Lower morale among other workers
• Lower productivity
• Administrative costs and fees
• Legal fees
• Overtime pay for other workers whom are forced to cover the injured worker's shift
• Hiring costs of replacement workers
• Injury case management
• Fines by the Occupational Safety and Health Administration (OSHA)
• Production delays
• Broken relationships with clients

As you can see, there are more indirect costs associated with work-related injuries than direct costs. When a worker strains his or her back on the job, the direct costs may total to be $10,000, which is already a hefty sum no matter how you look at it. But the real issue lies in the indirect costs, which can total to more than $100,000. Indirect costs of work-related injuries are estimated to be ten times higher than those of direct injures, attributing to the need for greater safety in the workplace.

So, what steps can you take to create a safe, injury-free workplace? You can read through some of our previous blog posts for more workplace safety tips, but arguably the single most important step is to train workers the right way to perform their job. Many employers simply assign workers to a particular station or task, allowing them to learn it themselves. While this may seem like the easiest solution, it can hurt your efforts in the long run by increasing the risk of worker injury.

Personal protective equipment (PPE) is another key element of worker safety. Workers should be given the appropriate PPE to reduce their risk of injury and illness, for which the employer is responsible for supplying.