The business case for safety and health at

The business case for safety and health at work : Cost–benefit analyses of interventions in small and medium-sized enterprises Safety and health at work is everyone’s concern. It’s good for you. It’s good for business.

Why focus on small and medium-sized enterprises? Small and medium-sized enterprises (SMEs) are the backbone of Europe’s economy § They are responsible for 67 % of employment Unfortunately, their workers are disproportionately likely to suffer as a result of poor occupational safety and health (OSH) § 82 % of occupational injuries and 90 % of workplace fatalities happen in SMEs face particular challenges when it comes to OSH. An SME is likely to have more difficulties in resourcing and implementing a safety and health policy than a larger company http: //osha. europa. eu 2

Looking at the business case for OSH Profit alone is rarely a motive for implementing an OSH initiative As well as looking after the employees, reputation and compliance with the law are bigger factors for businesses SMEs tend to see OSH as a burden on operating costs However, greater awareness of the link between improved OSH and higher productivity/cost savings could help to encourage SMEs to take action http: //osha. europa. eu 3

The new case studies For this reason, EU-OSHA worked with partners across Europe to develop 13 new case studies looking at OSH initiatives in SMEs A business case was put together for each intervention, examining all the costs and benefits directly attributable to the changes made This meant that they could be assessed from a purely financial point of view 11 of the 13 interventions studies were profitable by the end of the five-year period chosen for evaluation http: //osha. europa. eu 4

Case study 1: The company and the issue Statga, in Lithuania, manufactures office furniture The company employs around 90 people The workers complained that the ventilation system and respirators in use were inadequate The company investigated and found that the workers faced occupational risks such as: § inhalation of dust, fumes and metal particles § injury to the face and eyes from metal particles http: //osha. europa. eu 5

Case study 1: the intervention The management and the workers worked together to solve the problem Research was undertaken and various safety systems were tried out until a preferred option was found Individual air cleaning and supply systems with face shields were the solution that was arrived at http: //osha. europa. eu 6

Grinders (left) and painters (right) before and after the implementation of new system http: //osha. europa. eu 7

Case study 1: The results From a purely economic point of view: § The new equipment saved money on spare parts and accessories § An average annual saving of just over € 450 per worker was achieved § The payback period was one year. Even without taking into account less direct or harder to calculate effects such as increased motivation and productivity and decreased sick leave, the initiative was financially beneficial From an OSH perspective: § The workers felt safer and more comfortable § Morale improved § The intervention was nominated for a national good practice award http: //osha. europa. eu 8

Case study 2: The company and the issue Kwekerij de Lindenborg is a cucumber cultivation company in Breda, the Netherlands, employing 3 permanent workers and seasonal staff Picking and processing cucumbers is physically demanding. Before the intervention, it involved: § lifting and moving heavy containers § adopting awkward postures § performing repetitive movements With workers getting older and the firm planning to expand, the owner, fearing an increase in musculoskeletal disorders among his employees, decided to tackle these issues, which lowered productivity and resulted in high rates of sickness absence http: //osha. europa. eu 9

Case study 2: The intervention The company worked with a supplier to develop a new system to make the work easier Prototypes were tested and the old trolley system, which involved heavy work and awkward postures, was replaced The new system eliminated much of the bending and lifting that had previously been required http: //osha. europa. eu 10

Case study 2: The results From an economic point of view: § § § Sick leave caused by work-related MSDs was reduced by 20 % Picking became 15 % more efficient Sorting became 5 % more efficient The investment was earned back in a little over four years Fewer cucumbers were damaged using the new system The intervention enabled the company to grow sustainably From an OSH perspective: § The work became less physically demanding § Sustainable employability improved § Employees reported feeling more comfortable during their work http: //osha. europa. eu 11

Case study 3: The company and the issue HAW is a waste disposal company based in Nauen, Germany, with 143 employees Slip and trip accidents occurred relatively frequently, especially during mounting and dismounting from vehicles In 2009, the year before the intervention, there were 30 accidents resulting in workers reporting sick for between one day and 30 days http: //osha. europa. eu 12

Case study 3: The intervention Discussions of the accidents were introduced during the usual briefings Photographs were presented during these meetings to illustrate the hazards involved The company purchased better boots that provided more stability for workers http: //osha. europa. eu 13

Case study 3: The results The costs of providing the training and new boots amounted to € 4, 500 The costs to the company of the accidents in 2009 were € 48, 039. 17 They included costs incurred through stoppages, provision of first aid, accident reporting and analysis and reorganisation of work In 2010 and the following years, the numbers of accidents went down by 20 % The costs of the intervention were recovered back in 1. 3 years http: //osha. europa. eu 14

Conclusions from the new case studies When all the costs and benefits are taken into account in a business case, OSH interventions are often shown to be highly profitable Wide rangings scope interventions, transferable to a broad range of risks, appear to be more profitable than those tackling a highly specific problem In general, interventions consisting mostly of training and organisational change tend to be particularly profitable Further research on successful, widely applicable interventions would be of value http: //osha. europa. eu 15