What Are the Costs Associated With Workplace Injuries?

To say there are a lot of workplace injuries would be an understatement. According to data compiled by the U.S. Bureau of Labor Statistics (BLS), nearly 3 million workers in the United States sustain a nonfatal injury each year. Furthermore, over 5,000 workers die on average each year from a work-related injury. As an employer, workplace injuries can prove costly. To better understand the costs associated with workplace injuries, keep reading.

Increased Workers' Compensation

Workplace injuries can result in higher workers' compensation costs. Workers' compensation, of course, is a type of insurance that's designed to cover the cost of injuries and illnesses sustained in the workplace. Like with other types of insurance, providers of workers' compensation typically charge more for coverage if a business has a high number of claims. The more workers who are injured at your business, the higher its workers' compensation costs will be.

Lost Productivity

Workplace injuries can cause of a loss of productivity. When a worker is injured, he or she will become less productive. The worker may have to take time off to recover, or the worker may simply work at a slower speed. Regardless, injuries are almost certain to affect a worker's productivity. And when a worker's productivity drops, so will your business's productivity.

Finding and Training Replacements

You'll have to find, as well as train, a replacement for an injured or ill worker. Finding and training replacements isn't just time-consuming; it's costly. According to a study conducted by the Association for Talent Development, businesses in the United States spend over $1,200 on average to find and train a new employee. Therefore, multiple workplace injuries can take a hefty toll on your business's finances.

Lower Morale

Another way that workplace injuries can cost your business money is by negatively affecting the morale of its other workers. When workers discover that one of their coworkers has been injured, they'll have a lower morale. In turn, their productivity may drop. Alternatively, some workers may quit after discovering that one of their coworkers has been injured. Either way, it will affect your business's finances.

Damaged Equipment or Inventory

Workplace injuries often result in damaged equipment or inventory. Depending on the type of injury, a worker may accidentally damage a piece of equipment or inventory. As a result, your business will incur costs associated with repairing or replacing the damaged equipment or inventory.