The cost of worker injuries is staggering, and OSHA believes an approach with injury and illness prevention programs (I2P2) at the center can save money in wages and related costs.
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The financial incentive to protect employees is strong. OSHA cites data from the Liberty Mutual Research Institute, which reports the financial impact to employers of the most disabling workplace injuries in a recent year at $53 billion.
In addition to the direct costs, employers face a variety of indirect costs. These include:
- Wages paid to injured workers for absences not covered by workers’ comp;
- Wage costs related to time lost through work stoppage;
- Administrative time spent by supervisors following injuries;
- Employee training and replacement costs;
- Lost productivity related to new employee learning curves and accommodation of injured employees; and
- Replacement costs of damaged material, machinery, and property.
OSHA notes these costs include those related to occupational illnesses that may not surface for years or decades following exposure. The agency says I2P2 programs, as proactive processes, “can substantially reduce the number and severity of workplace injuries and can alleviate the associated financial burdens on U.S. workplaces.”