Hidden Cost of AccidentsMonetary and/or Emotional
Real and Hidden CostsWhat does an accident really cost?
?
Real and Hidden CostsWhat is the Medium-of exchange? What are costs based on?Quality of LifeHealth and Welfare
$$$$$
Direct CostsTypically Insured Costs
Medical ExpensesWage Compensation (indemnity)Legal Defense
Hidden CostsUninsured Amounts
Paid by the employer3 to 5 times greater than direct costs
Direct Costs$
Hidden Costs$$$$$
Hidden CostsCosts Of Lost Wages Paid To Injured Employee
Includes medical treatment and time away from work not covered by insurance
Sick leaveDoctors visits
Hidden CostsCosts paid to other workers not injured
Includes those employees that stopped work to watch, talk about or to assist injured.Those employees whose job is dependent on injured worker’s products or tasks to accomplish their work
Hidden CostsCosts of damage to material, property or equipment
Repairs to any equipment or property damaged in the accident
Hidden CostsCosts of overtime necessitated by the accident
Including costs to make up for lost production, additional supervision, and additional operating expenses
Hidden Costs
Additional wages paid to supervision
Involve caring for the injured personTransporting injured to medical facilityInvestigating accidentGetting operation organized again
Hidden CostsResuming to normal activities
Instructing, training and repositioning employeesMay require hiring a replacement employee with all costs of hiring a new employeeDiminished productivity
Hidden CostsManagerial or clerical personnel processing claims, forms and any related paper work
Processing claims and related paper workTending telephone calls and communications related to incidentConducting interviews and investigationsAttending HearingsUncovered legal costs
Hidden CostsWages due to decreased productivity
After employee returns to work, capacity is diminished because of restricted movementEmployee is nervous and less confidentEmployee spends time discussing incident with other employees
Hidden CostsReduced Competitive Position Caused by delaysIncreased operating costsRework time on damaged productsIncreased cost of insurance (Mod Rate)Higher Labor RateUnfavorable publicityCivil penalties, fines, legal fees and time involvement for violations
Intangible FactorsFamily Stress
Mental and Emotional Strain
Loss of Ability to Make a Living
Danger Signs!Indicators of Larger Problems
Near missesMinor incidentsSerious Incidents
Property damageProduct damageEquipment damageEmployee injuries
Danger Signs!Production is not at optimumProfitability is reducedEmployee moral is diminishedPublic image is damaged
Getting set up for the “big one”
2 Unsafe Landings At O’Hare Airport Each Day
16,000 Lost Pieces Of Mail Per Hour
20,000 Incorrect Drug Prescriptions Per Year
50 Newborn Babies Dropped At Birth Each Day
32,000 Missed Heartbeats Per Person Each Year
2 M Books In The Next Year Will Have The Wrong Cover
900,000 Credit Cards Will Have Incorrect Information
99.9% Good Enough?
Inexperience = Accidents
80%
20%Employees Who Have Less Than 12 Months Experience at a Different or New Task, Account For 80% of ALL Accidents
Guard Against These Traps
Time PressureVague GuidanceAfter Wake-up or MealFirst Time EvolutionOver-confidenceDistractive EnvironmentHigh Work Load/StressFirst Day After Time Off
Accident Investigation Tips
1. Secure 2.Treat 3. Investigate!
Interview Witnesses Document Call In the Claim ASAP Don’t Wait! Facts Not Fault Finding Don’t Interrupt “In Their Words”
Accident Investigation Tips What Accidents Do You
Investigate? Root AND Primary Causes
Identified Corrective Actions For Each Committee Should Review What Are You Doing Different
Now To Prevent Recurrence?
Serious
Minor
NearMisses
10
30
600
1 Fatality