MODULE 1: MANAGEMENT COMMITMENT

The unknown costs of an accident

You will hear or read a lot about direct, (insured), and indirect, (uninsured), costs associated with workplace accidents. But, there are other costs that are difficult or impossible to measure that may have a "fatal" impact on the success of the company. We're talking about the unknown or unknowable costs of workplace accidents: morale and reputation.

When a serious accident or fatality occurs in the workplace, a very basic, negative message may be sent to employees: "management does not care." The message may be subtle, but it's always present in the minds of one or more employees. In many instances employee morale suffers, and this usually negatively impacts the quantity and quality of the work they perform. Employee turnover usually increases after a serious accident, and always after a fatality.

Another factor that might affect the long-term success of the company is that of reputation.

o What do employees and the members of the local community think about a company that does not keep its workplace safe and healthful?

o What message does the families of accident and fatality victims send to their family members, friends, and neighbors?

o Will a company with a poor accident record maintain competitive advantage when hiring the best qualified people?

The reputation of a company is a reflection of its public image and must be considered as an important factor influencing its success.