Impact of Safety on Productivity

Impact of Safety on Quality:

• Better work methods, reduced absenteeism
• Improved organizational performance and product
quality
• Projects driven by safety more likely to be on
schedule and within budget
• Major investments in safety resulted in reduced
accidents with corresponding increases in
productivity, positive attitude about quality and
safety
Impact of Safety on Competitiveness:
• Safety culture to competitiveness in many ways
• Winning or loosing a contract
• People’s way of thinking and development of
safety features used as marketing devices (air bags)
• Positive impact on employees’ commitment and
loyalty with greater job satisfaction, productivity
and reduced absenteeism
Impact of Safety on Profitability:
• Is safety really a non-productive expenditure?
• Profit by minimizing loss and adding to the capital
value of organization
• HSE’s Accident Prevention Advisory Unit (APAU)
estimated £1 of £11 lost as a result of workplace
accidents is recovered by insurance.
Typical costs associated with accidents:
• Lost production caused by
 Time away from job by injured person and coworkers in
attendance.
 Time spent by first aider attending injured person.
 Possible downtime of production process
 Possible damage to product, plant and equipment.
• Time and costs due to repair of plant and equipment
• Increased insurance premiums
• Legal cost
• Medical expenses
• Compensation costs to injured employees
• Absenteeism
• Lower morale of employees leading to poor performance
and productivity
• Unsatisfactory employee relation