The Economic Value of Improving Safety Management

Employment is crucial to the economy, serving as the foundation for the nation’s economic productivity and enabling individuals to support themselves, their families, and their communities.

In Australia, nearly two-thirds of the population is of working age, with over 80% of them currently engaged in employment (Australian Bureau of Statistics (ABS), 2022). Unfortunately, on average, more than 180 workers lose their lives due to workplace incidents in Australia (Safe Work Australia, 2020).

During 2021-22, the Australian Bureau of Statistics indicated that 497,300 people of the working population experienced a work-related injury or illness.

Data from Deloitte Access Economics (2022) indicated that the average annual employer overheads from workers’ compensation claims and the costs incurred from hiring and training new staff was $4.5 billion per year. As can be identified in Graph 1, the average annual employer overheads were the highest for the Health, Public administration, Construction services and Retail trade.

Work-related injuries and illnesses are prevalent across all industries, occupations, and sectors. Although the specific risks vary depending on the industry and job position, the prospect of experiencing injury or illness due to work activities can affect individuals across every employment sector in Australia.

Ensuring workplace safety and fostering a culture of health and wellbeing is paramount for organisations of any size or industry. The International Occupational Health & Safety (OHS) Management System Standard, ISO 45001:2018, provides a robust framework for managing and preventing work-related injuries and illnesses.

What exactly is an Occupational Health and Safety Management System?

An Occupational Health and Safety Management System is a systematic approach to managing workplace safety and health, involving policies, procedures, and best practices designed to prevent accidents, injuries, and illnesses. ISO 45001:2018 offers a comprehensive framework adaptable to any organization, enabling proactive actions to promote a safe and healthy workplace.

Benefits of ISO 45001 certification:

• Competitive advantage: Achieving ISO 45001 certification can differentiate your company from other competitors by highlighting your commitment to maintaining a safe and healthy work environment strengthening brand image.
• Enhanced safety performance: Establishment of an occupational health and safety management system provides the foundation for organisations to provide safe and healthy workplaces by preventing work-related injury and ill health, as well as proactively improving safety performance.
• Compliance with legal requirements: ISO 45001 assists in reducing the risk of fines, penalties, and legal issues through the establishment of a process to identify relevant legal and other requirements and ensuring compliance.
• Reduced costs: ISO 45001 provides a framework for risk management to prevent workplace incidents and as a result mitigate workers’ compensate claims, insurance premiums, costs associated with absenteeism, decreased productivity, production disruptions and training of new staff.

Is your organization ready to elevate its safety standards and gain a competitive edge? Implementing ISO 45001 can significantly impact your business, ensuring compliance, protecting your employees, and enhancing your reputation.

Our team at Feddersen Consulting has helped many businesses achieve and maintain their certifications. Reach out to us to learn how ISO 45001 can transform your workplace and elevate your business to new heights!

Reference

Australian Bureau of Statistics (ABS). (2022). Labour Force, Australia (April 2022). https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/apr-2022#data-downloads

Safe Work Australia. (2020). Work-related traumatic injury fatalities Australia 2020. https://www.safeworkaustralia.gov.au/sites/default/files/2021-11/Work-related%20traumatic%20injury%20fatalities%20Australia%202020.pdf

Deloitte Access Economics. (2022). Safer, healthier, wealthier: The economic value of reducing work-related injuries and illnesses. https://www.safeworkaustralia.gov.au/sites/default/files/2022-10/final_safer_healthier_wealthier_theeconomic_value_of_reducing_work-relatedinjuries_and_illnesses_-_summary_report%2002.pdf