5 things every CEO should know about workplace safety

Workplace injuries can have a major impact on both the individual employee and to you, the employer. There are many causes, from hazardous working conditions and inadequate safety measures to poor training and oversight. According to the Occupational Safety and Health Administration (OSHA), slips, trips, and falls are the second-leading cause of workplace injuries and fatalities in the United States. The United Nations reports that the global economic cost of work-related accidents and illnesses is estimated to be 4% of the world’s Gross Domestic Product (GDP), with slips, trips, and falls being a significant contributor to these costs.

In many cases, these injuries and illnesses are preventable, but failure to address safety concerns can have serious consequences for workers and the company.

Here are 5 things every CEO should know about workplace safety:

1. Decrease in team morale

A frequently overlooked cost of workplace injuries is the potential for decreased morale among workers. When a workplace injury occurs, it creates fear and anxiety among other employees, who may be concerned about their own safety. This can decrease morale and productivity, as employees may be less motivated. In severe cases, it may even lead to high employee turnover, as employees may choose to leave the company to avoid the risk of injury.

2. Decline in employee productivity

Injuries are a huge contributor to declines in productivity for many reasons, such as absenteeism, reductions in output, loss of skilled workers, and training costs. The loss of one employee can have a ripple effect on the entire company. For example, an employee suffers a severe fall on the job and misses one month of work. In this case, the company likely pay for medical costs such as hospital visits, diagnostic tests, medications, and physical therapy, wage replacement such as worker’s compensation, and training costs associated with hiring a replacement worker while the employee is out. And once the employee returns to work after a workplace injury, they may not be able to perform their job at the same level as before. This can result in decreased productivity and efficiency, significantly impacting the business.

3. Increased insurance premiums

One significant cost of workplace injuries is the potential for increased insurance premiums. Employers are required to purchase workers’ compensation insurance to cover the costs associated with workplace injuries. However, if a company has a high number of workplace injuries, its insurance premiums may increase significantly. This is because insurance companies view companies with a high rate of workplace injuries as a higher risk and therefore charge them higher premiums to cover that risk.

4. Impact on company’s reputation

Public perception is critical to a company’s success for many reasons. Still, two of the most common reasons are lack of trust and confidence in the company’s ability to provide safe working environments, which can affect attractiveness to potential customers and employees.

When news of a workplace injury is circulated — and you can be sure it will be shared — the company’s credibility may take a hit. As your business becomes associated with unsafe practices, customers could avoid doing any deal or transaction with you out of fear and lack of trust. Customers perceive such companies as irresponsible or unethical and may choose to take their business elsewhere. The same is true for potential employees. Workplace injuries impact a company’s ability to attract and retain top talent. Potential employees may be hesitant to work for a company with a reputation for being unsafe. Current employees may leave if they feel their safety is not being taken seriously.

5. Artificial Intelligence can improve workplace safety protocols

Workplace injury prevention can benefit both employees and employers. Investing in safety training and equipment can help prevent accidents and keep employees safe. Employers should consider incorporating Artificial Intelligence (AI) into their existing camera infrastructure investments to extract meaningful business operations insights while also creating new valuable enterprise data.

Aicadium’s AI-powered solution collects data from on-site surveillance cameras. Using computer vision technology, the AI solution can generate actionable insights or recommendations based on the data it collects, allowing for real-time detection of safety breaches and improper use of safety equipment. Employers can respond in real-time to address these safety violations, preventing accidents and improving workplace safety.

To learn more about how you can optimise your workplace with the help of AI, schedule a 15-min call to find out more!

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