Recent U.S. Bureau of Labor Statistics data reveals that about 2.8 million serious workplace injuries and illnesses occurred in 2022, a 7.5% increase from the year before. In the same year, there were also 5,486 work-related deaths – about one employee fatality every 96 minutes. These millions of preventable workplace illnesses and injuries underscore the urgent need for employee training, to not only ease the suffering of workers and their families, but also to reduce company costs.
According to OSHA, employers bear a weekly cost of over $1 billion for direct expenses related to serious nonfatal workplace injuries. When factoring in lost wages, medical expenses, and administrative costs, the expense per employee for injuries requiring medical attention (medically-consulted injury) in 2021 was about $42,000. The cost per employee death was more than $1.3 million.
Employers who create effective safety and health programs typically see fewer injuries and illnesses, as well as decreases in workers' compensation payments, medical expenses, legal fees, and lost productivity. These efforts also often lead to improved productivity and profits.
If you’re concerned about training costs, consider the costs of not providing your employees with OSHA training. Here are some key points to keep in mind:
1 Penalties.
Failure to comply with OSHA safety requirements can result in hefty fines for business owners. Organizations may face maximum penalties of up to $15,625 per serious violation or $156,259 for willful or repeated violations. These penalties can accrue daily after the deadline to fix the issue.
2 Workers' compensation payments.
Employers may have to pay workers' compensation claims for employees who suffer work-related injuries or illnesses due to poor training. The average cost for workers' compensation claims for accidents in 2020-2021 was $41,757.
3 Increased insurance premiums.
Businesses with a high number of workplace injuries or illnesses may experience increased insurance premiums, adding to overall operational costs.
4 Legal fees.
You may have to cover legal fees associated with lawsuits from an employee or their family over work-related injuries or illnesses.
5 Lost productivity.
When employees are injured or sick, their productivity declines, which impacts the business's bottom line. A study by the Integrated Benefits Institute estimates that for every dollar an employer spends on healthcare benefits, an extra $0.61 of productivity is lost due to illness and injury.
6 Reputation damage.
Businesses with poor safety records may face negative publicity and reputational harm. This can lead to the loss of customers and business opportunities.
7 Loss of a skilled workforce.
Training empowers employees with new skills and knowledge. It helps them perform better, boosts morale, and creates a more engaging work environment. The lack of training results in a less skilled workforce, lower employee satisfaction, and higher employee turnover.
8 Impact on direct and indirect costs.
Studies on the direct costs of injuries and illnesses demonstrate that employers can save $4 to $6 for every $1 invested in an effective workplace safety program. Indirect costs of an incident can be up to 10 times higher than the direct costs. By providing OSHA training, you may avoid many expenses and enjoy benefits such as increased productivity, higher employee morale, and cost savings.
If you have concerns about the cost of OSHA training, we can help. DWC Workplace Safety OSHA-authorized instructors offer free 10-Hour OSHA Construction Training. DWC also offers 10-Hour OSHA General Industry Training and 30-Hour OSHA Construction Training for only $30.
For more information on DWC’s OSHA-authorized training courses, customized training programs, or free on-site or virtual OSHA-compliance consultation, visit www.TXSafetyAtWork.com or call 800-242-7031, option 2.