The Cost Of Unsafe Work Practices

The Cost Of Unsafe Work Practices
Is your company dishing out money left and right for workplace injuries that could have easily been prevented?

Workforce incidents have a huge impact on a company’s bottom line. Incidents not only negatively affect employers’ industry and employee reputation, but also its productivity, business profitability and market competitiveness. That said, it is crucial for employers and employees to be knowledgeable on how to reduce and prevent incidents and how to properly manage, report and document them.

OSHA estimates that employers pay nearly $1 billion per week for direct Workers’ Compensation costs alone. There are direct and indirect costs to be considered when it comes to workforce injuries. Direct costs include workers’ compensation payments, medical bills, indemnity payments and temp disability payments. Indirect costs can include lost productivity, training replacement employees, investigations, implementation of corrective actions, property repairs and/or costs associated with employee absenteeism.

Most employers do not consider indirect costs when thinking about workforce incidents. However, these costs quickly add up and can range from 6-8 TIMES MORE THAN DIRECT COSTS.


In 2016 it was estimated that $151.1 billion was spent on work injuries. This number includes productivity losses of $49.5 billion, medical expenses of $33.8 billion and administrative expenses of $48.3 billion. Part of this total also includes estimates for the amount of money spent on motor vehicle damage, fire damage, value of time and more. It is also extremely important to consider the amount of days and time lost due to incidents in the workplace. Check out the photo below that shows LOST TIME due to work-related injuries.


The increasing costs of incidents are just another reason why it pays to be safe in the workplace. By developing and executing an effective safety program and properly training employees to ensure they know what to do in the event of an incident, companies can save tens of thousands – even hundreds of thousands of dollars each and every year, as well as increase their employee-safety reputation within the industry helping recruit and retain the best employees.

SMART’s mission is to help your company keep employees safe, productive and on the job every day! In doing so, your company will improve its productivity, profitability and competitiveness – key factors in business growth and success. To learn more about how SMART Safety can help your company prevent incidents, improve productivity, maintain OSHA compliance and increase profitability please visit Safety Program Management.