September 18, 2002—The European Agency for Safety and Health at Work has published a report to help employers evaluate the cost of workplace accidents and conduct cost-benefit analyses of preventive measures.
The report provides a 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.
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.
Copies of the report, “Inventory of Socio-economic Costs of Work Accidents,” are available to download from the Agencys Web site.
Based on a report from WorkplaceLaw.net
