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Product category: Engineering Industry Developments and Awards
News Release from: European Agency For Safety And Health At Work
Edited by the Engineeringtalk Editorial Team on 12 September 2002

Tools improve occupational safety and
health

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A new, practical tool helps businesses to evaluate the true impact of workplace accidents and to conduct cost-benefit analyses of preventive measures.

A new, practical tool to help businesses evaluate the true impact of workplace accidents and conduct cost-benefit analyses of preventive measures has been launched by the European Agency for Safety and Health at Work Currently, every year nearly 5 million employees in the EU suffer from work-related accidents involving more than three days absence from work, and a further 5000 are killed

Besides the human suffering, these accidents have a strong economic impact on business, as 150 million workdays are lost and the insurance costs to be borne by industry add up to Eur 20 billion.

Agency Director, Hans-Horst Konkolewsky, commented: "This new tool will enable businesses and all those involved in prevention at company level to get a realistic overview of the total costs of occupational accidents and diseases and document the benefits of preventing them.

It will help to demonstrate that "good safety and health is good business" as prevention of work related injuries not only reduces costs, but also contributes to improving company performance".

The agency's new tool, which can be easily applied using standard spreadsheet software such as Microsoft Excel and Lotus 123, provides a simple five-step framework for firms to put a price on these costs, including 'hidden' costs such as lower productivity, higher insurance premiums and the impact on a firm's 'return on investment'.

This data can then be used to calculate the additional cash flow that would be generated if the firm invested in specific preventive measures - a standard 'cost-benefit' analysis.

Presented in a new online publication, an Inventory of socio-economic costs of work accidents and summarised in agency fact sheet 28, the process involves attributing costs under three main headings, each in a spreadsheet format.

These include 'safety and health management', such as the cost of protective equipment and occupational safety and health personnel, internal and external; 'safety and health-related costs', for example work-related absenteeism, excessive staff turnover and legal costs and fines; and, finally, 'consequences of accidents to company performance', such as lost output, damage to reputation and reduced ability to innovate.

In each case, the fact sheet suggests ways to quantify these costs.

To calculate the financial benefits of investing in particular preventive measures, a similar process is used.

The cost of the investment, including consultancy, equipment and other costs, is compared with the costs of not having these measures.

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