EMPLOYEE HEALTH & SAFETY AT THE CORE OF YOUR BUSINESS

Unlocking the hidden employee value!

Abstract

Organizations are beginning to understand the need for employee health and safety at their workplaces, and its impact to their business. This article examines the recent trends, benefits, technologies, and regulations that are shaping organizational behaviors to not only improve their employee wellbeing, but also revenue and profits as a consequential effect.

INTRODUCTION

We have heard about companies promoting innovation and technology and calling that their driving passion and force. Then there are companies that put customers in the center of their universe and develop all their business processes to keep customers happy and satisfied. In the recent years, many companies have claimed to make employees as one of their focus areas, besides of course their customers, and the quality of their products or services.?

However, very few have actually implemented policies and processes to really make their employees the core of their focus. While it is true that enterprises are set up to earn profitable revenue and create wealth for its shareholders, it is also true that when employees feel cared for, respected and aptly rewarded, their loyalty, productivity and creativity reaches the highest possible levels, driving efficiencies and profits on its own steam!

In today's fast-paced and dynamic work environments, the importance of employee health, safety and wellbeing cannot be trivialized. Industries where a large part of the workforce is customer facing such banking, insurance, retail, healthcare, travel, hospitality, automotive dealerships, etc. can easily measure the direct impact of their customer facing employees’ wellbeing to their productivity and revenues. Similarly, industries that employ a large number of labour can also correlate their productivity and revenue against their health and safety initiatives and spends. The fact is that whether it is a start-up, SME or a large enterprise, the impact of employee health, safety and wellbeing are becoming an integral part of the company’s boardroom agendas today.?

The good news is that most large organizations across geographies and industries are recognizing that the wellbeing of their workforce goes beyond mere legal compliances – it directly influences their productivity, employee morale, and the overall success as a company. Employee health, safety and wellbeing entails the implementation of best practices, policies, and protocols aimed at preventing accidents, injuries, and illnesses, while promoting physical and mental wellbeing.

Governments across the world are also recognizing the importance of monitoring and regulating employee health and safety and are formulating necessary regulations to promote employee wellbeing at workplaces. These regulations may differ in terms of their scope and applicability since the exposure levels of employees vary across industries and geographies. Therefore, labour intensive industries such as mining, metals, construction and manufacturing may focus more on worker safety; hazardous industries such as chemicals, pesticides, pharmaceuticals, and petrochemicals need a different level of employee health safeguards; and services industries such as banking, hospitality, healthcare and IT focus more on mental stress and lifestyle related diseases.?

In terms of regulations, different regions have their own sets of laws and standards governing workplace health and safety. For example, in the United States, the Occupational Safety and Health Administration (OSHA) oversees workplace safety regulations. In the European Union, the EU Agency for Safety and Health at Work (EU-OSHA) plays a similar role.

In India, the Ministry of Labour & Employment and the Ministry of Corporate Affairs frame the primary regulations and guidelines that govern employee health and safety at workplaces. The primary legislation governing occupational safety and health in India is the?Factories Act 1948. Additionally, the Mines Act 1952 and the Docks Workers (Safety, Health & Welfare) Act 1990 have specific provisions concerning labour and employee safety in mines and dockyards.?

Some other related Acts under the Company Act that deal with employee health and safety either directly or indirectly are the Employees' State Insurance Act (ESI Act) 1948, the Employees' Provident Funds and Miscellaneous Provisions Act 1952, Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996, and the Contract Labour (Regulation and Abolition) Act 1970.?

Further, the Occupational Safety, Health and Working Conditions (OSH) Code, 2020 was introduced to consolidate and amend the laws related to occupational safety, health, and the working conditions in various sectors. It deals with specific regulations on particular hazards in specific sectors and territories. OSH is the primary responsibility of the?Ministry of Labour?and the State Labour Departments in the country.

The Ministry of Corporate Affairs (MCA) oversees the administration of the Companies Act and related regulations, which includes aspects related to corporate governance, accountability, and disclosures. While the primary focus of this ministry is on corporate matters, it provides guidelines on employee health and safety through corporate social responsibility (CSR) initiatives that companies need to undertake in a mandatory manner under the Companies Act.?

While these activities can encompass a wide range of social and environmental initiatives, they also include projects related to employee welfare, health, and safety and companies can contribute to employee health and safety efforts through their CSR initiatives under the supervision of the MCA.?

Recently, even SEBI (Securities & Exchange Board of India) has introduced certain provisions under their new BRSR (Business Responsibility & Sustainability Reporting) framework to promote employee wellbeing. All listed companies in India have to mandatorily monitor and report quantitative metrics on ESG (Environmental, Social & Governance) related factors based on 9 Principles which include?conducting business with integrity, providing sustainable and safe goods and services, respecting and promoting human rights, and promoting inclusive growth and equitable development, among others. Principle 3 deals with how businesses should respect and promote the well-being of all their employees, including those in their extended value chains.

RECENT TRENDS IN EMPLOYEE HEALTH & SAFETY MANAGEMENT

1. Technology Integration: Businesses are increasingly incorporating technology such as wearables, IoT devices, vision analytics and artificial intelligence and machine learning to monitor and improve employee health and safety. This includes real-time tracking of environmental factors, monitoring of physical strain and incidents, hazardous work environments, safety non-compliances, and early identification and prevention of potential hazards.
2. Mental Health Focus: Employers are increasing recognizing the importance of addressing mental health issues at the workplace. Companies are implementing programs and policies to support employees' mental well-being, including access to counselling services, stress reduction initiatives, and promoting work-life balance.
3. Remote Work Safety: Many workers tend to work in remote sites with limited supervision. This is especially true for field staff that goes for remote site inspections, repair and maintenance work. Ensuring the safety of workers in remote sites has become a priority, with employers providing specific guidelines and innovative technology enabled support to remotely monitor the safety and prevent work-related injuries to workers in remote sites.
4. Health and Wellness Programs: Employers are offering a wider range of health and wellness programs to employees, including fitness facilities, healthy eating initiatives, mindfulness activities, and stress management workshops.
5. Diversity and Inclusion: Health and safety policies are being reviewed through a diversity and inclusion lens to ensure that they cater to all employees' needs, taking into account factors such as gender, age, ethnicity, and disability.
6. Sustainable Safety: Environmental concerns are influencing workplace safety, pushing companies to adopt more sustainable practices that not only protect employees but also minimizes the impact to the environment.
7. Remote Training and Education: Online platforms and virtual reality tools are being used to deliver safety training and skills education to employees, providing flexibility and on-demand accessibility to learning content.

BENEFITS OF PROMOTING EMPLOYEE HEALTH & SAFETY AT WORKPLACES

1. Reputational Impact: Organizations that prioritize employee health and safety build a reputation as responsible and caring employers. This reputation can attract top talent and positively influence relationships with clients, partners, and investors.?
2. Talent Acquisition: Today’s younger generation cares as much about workplace safety, health and wellbeing, as they do about compensation & benefits. They tend to join organizations that promote employee friendly policies, work practices, and an open work culture.?
3. Improved Morale and Employee Engagement: When employees feel that their well-being is a priority, their morale and job satisfaction soar. This fosters a positive work culture and higher levels of engagement, ultimately contributing to lower turnover rates.
4. Enhanced Efficiency & Productivity: A safe and well-organized workplace leads to better efficiency. When employees feel secure and are free from health risks, they can focus better on their tasks, resulting in improved performance and revenue. Employees spend less time navigating hazards, which allows them to focus on their core responsibilities.
5. Cost Savings: Preventing accidents and injuries not only saves human lives but also saves money for organizations. The costs associated with medical expenses, absenteeism, legal battles, and retraining of new staff can be substantial. Investing in safety measures is, therefore, a prudent financial decision.
6. Reduced Accidents and Incidents: Implementing robust safety measures significantly reduces the risk of workplace accidents, injuries, and illnesses. This leads to fewer absences, reduced workers' compensation claims, and lower insurance costs.
7. Legal & Regulatory Compliance: Governments around the world have established stringent regulations and standards for workplace safety to protect employees from harm. Organizations are obligated to adhere to these regulations to avoid legal penalties. Adhering to safety regulations ensures that the organization avoids hefty fines and penalties, safeguarding its financial stability and reputation.
8. Humanitarian Responsibility: Beyond legal requirements, organizations have an ethical responsibility to ensure the safety and well-being of all their employees. Every worker has the right to return home from work safe and stress free.

KEY TECHNOLOGY TRENDS

The Key Technology Trends that are being used to improve the employee health and safety in factories and workplaces includes:

1. Internet of Things (IoT): IoT sensors and devices are being utilized to monitor various environmental factors such as temperature, humidity, air quality, noise levels and leakage of industrial or harmful gases. These sensors can provide real-time data to identify potential hazards and ensure the safety of workers and optimal working conditions.
2. Wearable Technology: Wearables like smartwatches and smart worker ID cards are increasingly being used to monitor employees' vital health parameters and physical activity. These devices provide insights into the fatigue and stress levels of workers, presence of workers in hazardous work zones, detection of falls, etc. and help to prevent accidents and promotes their well-being.
3. AI Powered Vision Analytics and Drones: Vision analytics is helping companies to monitor worker safety and identifying non-compliances such as improper use of equipment or lack of personal protective equipment (PPE) in real time, both in smaller remote sites, as well as large manufacturing plants, mines and construction sites. Drones are helping to conduct safety inspections and identify potential hazards in large and hard-to-reach areas to quickly assess any potential safety hazards or non-compliances.?
4. Predictive Analytics: Advanced data analytics and machine learning algorithms are starting to get applied to historical and real-time data to predict potential safety hazards. This allows companies to identify trends of unsafe practices, take proactive measures to prevent accidents and improve overall safety of their workplaces.
5. Virtual Reality (VR) & Augmented Reality (AR): VR and AR technologies are being used for safety training of employees in virtual environments that help to simulate real-world unsafe workplace scenarios, allowing them to imbibe and practice safety protocols in a controlled environment.
6. Mobile Apps: Mobile applications were being developed to provide employees with instant access to safety protocols, emergency procedures, SOP’s and reporting mechanisms. These apps can also facilitate structured communication between employees spread across multiple locations and safety personnel sitting in the main office.?
7. Robotics and Automation: Robots are being increasingly used for executing hazardous tasks that pose risks to human workers such as working in underground mines, cleaning sanitation chambers and ducts, working at heights or under the sea, etc. This minimizes direct exposure to dangerous situations and improves overall workplace safety.
8. Biometric Authentication: Biometric systems are being used to control access to restricted and hazardous work areas. This helps to keep track of employee movement and allowable work hours in extreme work conditions to ensure their safety.

SUMMARY?

Prioritizing employee health and safety isn't just a legal obligation, it's a strategic imperative for organizations aiming to create a thriving, efficient, and sustainable workplace. By establishing a strong safety culture, companies can reap the numerous benefits of reduced accidents, increased productivity, and a positive reputation, all of which contribute to the long-term success of any organization.?

Companies can create a longer-term roadmap of 3-5 years for their desired EHS journey, prioritize the high impact and low hanging fruits, deploy the right technology to instrument and automate the implementation of safety policies and work practices, and create powerful narratives to promote their EHS initiatives using multiple digital and social media platforms that create the maximum positive reputational impact for their organizations.?