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Work Health and Safety Blog

There's so much happening in the world of health & safety. Changes in legislation and requirements, changes in best practice, changes in ... you name it. Here's my take on making it simple. Simply Genius WHS - stop guessing... manage with confidence.

Why work health & safety is a "sexy topic" AMP analyst agrees with me that OHS is "sexy"

Maralyn Kastel - Saturday, October 31, 2009
AMP analyst agrees with me that WHS/OHS is “sexy”

 

Apparently, I’m not the only one that thinks work health & safety is sexy! Writing in the October/November Manufacturing Industry Update issue, Dr Ian Woods, senior research analyst with AMP Capital investors said that “occupational health and safety is now considered “sexy” by investors.

He went on to say that they actively examine the work health & safety performance of businesses when they make their investment decisions. 

The economic consideration for investments that Dr Woods considers is:
  • Business workers compensation premiums
  • Indirect costs and
  • Costs of reducing workplace incidents

Workplace injury costs are just the tip of the iceberg when it comes to the indirect costs that a business incurs from a serious incident.

Think about how your business would cope if you had a simple $1000 direct claims cost, with an estimated $5,000 indirect costs.  These are made up of the tangible and intangible and difficult to measure factors such as:

 Then there are other expenses such as:

  • Investigation time
  • Wages paid for lost time
  • Re-training replacements and labour hire costs
  • Overtime
  • Clerical time
  • Tooll and equipment damage
  • Short term equipment hire

Dr Woods says that in 2000-01 it cost Australian businesses $490 million with administration costs adding another $360 million.

These costs can reduce your ability to compete and investors are now looking at the financial impact from work health & safety risks in business before making investment decisions.

Whilst work health & safety (OHS) risks are not the only factor that investors consider, it is a fact that costs resulting from accidents and incidents cause many small/medium businesses to fail.

It is a basic right that at the end of the day, we want everyone to go home with all their fingers, all their toes and not get sick or injured at work.

That’s why work health & safety management (OHS) is sexy.

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