By Patrick Hogan, handle.com
Every construction company should make the health and safety of their employees a top priority. This is something that every construction professional has heard throughout their careers, but this is not an empty platitude. Everyone talks about prioritizing health and safety in construction for good reasons.
Failing to value health and safety in a project site could lead to injuries, illnesses, mental health issues, and even fatalities. According to a 2020 study by the Bureau of Labor Statistics, there were 1,061 workplace fatalities in construction in 2019. This amounts to 9.7% fatality rate, which was the highest recorded since 2007.
There is no way to recover the cost of life. This alone should be sufficient to encourage construction businesses to do everything they can in preventing work-related fatalities from happening. However, there are also financial benefits in construction that come with making health and safety a top priority.
Reduced expenses on workers’ insurance
Construction companies pay for insurance that is specifically designed to cover the expenses related to workplace injuries and other damages caused against employees. However, this does not mean that your insurance will cover all the direct and indirect costs related to occupational accidents.
Not all insurance policies are the same, and your insurance may not cover everything. The uninsured costs could pile up, especially when injuries and accidents happen frequently in your projects.
Decreased time and resources spent on incident investigation
When an accident occurs in the work site, you must investigate and trace the root cause behind the incident. This is standard operating procedure for most construction companies; otherwise, a preventable accident could happen again and incur more expenses for the company.
Incident investigations and root cause analyses take time to complete. Larger companies may have a team that is specifically dedicated for this type of work, but smaller businesses may struggle to keep up. Investing in a health and safety program could therefore be more financially beneficial for your company since you are able to focus on other more important and more immediate tasks.
Increased workplace productivity
When accidents and other health and safety issues occur, employees end up taking sick leaves and not showing up for work. This significantly reduces productivity in the workplace. You will not have enough people to complete the tasks, and you may fail to meet project milestones simply because you do not have enough manpower.
Keep in mind that the construction industry has been facing a labor shortage problem. It is difficult to replace skilled workers on short notice, and there is also downtime as you train new, entry-level employees. Losing your workers can lead to bigger financial losses than you think.
Increased employee retention rate
Being understaffed can be extremely stressful for your current employees. They need to work harder to cover for the missing staff, and being overworked can take a toll on their physical and mental health. Their morale will also be affected if they see their colleagues suffering through work-related injuries.
Overworked employees are more likely to look for another job with better working conditions. This implies that if you focus on keeping the worksite safe and healthy, your employees are more likely to feel better about their jobs and stay with your company. Retaining good and reliable employees reduces training costs and ultimately improves overall workplace productivity.
Reduced expenses on OSHA fines and other legal costs
Failure to comply with the rules and regulations imposed by the Occupational Safety and Health Administration (OSHA) result in penalties and fines. Legal actions can also arise when accidents happen in the workplace, which means you will have to spend money on lawyers and other administrative resources.
Prioritizing health and safety means you also reduce the risk of having to pay OSHA fines and dealing with lawsuits. Note that fines and lawsuits can be expensive. They can take up all your financial resources, especially if you are in the middle of a slow season.
Improved reputation in the industry
You do not want to be a company that is known for putting your workers in unsafe situations. Otherwise, you will have a negative reputation in the industry, which can impact not only your ability to hire skilled workers, but also your chances of getting new clients.
With a negative reputation, you may struggle looking for people to finance your projects. Word travels fast in the construction industry, and potential investors and property owners would not want to work with a business that does not care for health and safety.
About the Author:
Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.
