DR. D.Y. PATIL UNIVERSITY DEPARTMENT OF BUSINESS MANAGEMENT

Subject: Personnel FinanceProf. Mrs. Sharmila Kulkarni

Cost of Health and Safety Environment of a Company

PRESENTED BY

KEVIN MASCARENHAS

SAMPADA MEHER

ARTI PIMPALE

MADHURI DANGAT

SNEHA GENTYAL

PRIYANKA GADHAVE

Introduction For smooth functioning of an organization, the employer has to ensure health and safety of his employees.

Health and safety form an integral part of work environment. A work environment should enhance the well being of employees and thus should be accident free.

The terms health and safety are closely related to each other. Health is the general state of well being. It not only includes physical well being, but also emotional and mental well being.

Safety refers to the act of protecting the physical well being of an employee. It will include the risk of accidents caused due to machinery, fire or diseases.

Responsibility of Health and Safety Policy

In organizations the responsibility of employee health and safety falls on the supervisors or HR manager.

Responsibilities of Managers: Monitor health and safety of employees Coach employees to be safety conscious Investigate accidents Communicate about safety policy to employees

Responsibilities of Supervisors/departmental heads: Provide technical training regarding prevention of accidents Coordinate health and safety programs Developing safety reporting system Maintaining safe working conditions

BENEFITS OF HEALTH AND SAFETY ENVIRONMENT

To the Employees: - Improved health awareness and knowledge

Improved physical and mental wellbeing

Increased energy and vitality

Increased work enjoyment and fulfillment

Improved concentration and productivity

Improved team relationships.

To the Employers:-

Improved productivity

Increased creativity and innovation

Improved employee engagement

Improved staff morale

Reduced sickness-related absenteeism

Increased attraction and retention of staff

Reduced workplace injury and workers compensation costs

Improved employee relations

Improved corporate image

Health and Safety Acts in India

Factories Act, 1948

Mines Act, 1952

Workmen's Compensation Act, 1923

Dock Workers (Safety, Health & Welfare)Act, 1986

Costs of Health and Safety Environment to the Company

DIRECT COSTS

Workers compensation payments Medical expenses

INDIRECT COSTS

Training replacement employees Accident investigation and implementation of corrective measures Lost productivity Costs associated with lower employee morale and absenteeism

EXAMPLE OF A COMPANY

MAXVAL TECHNOLOGIES PRIVATE LIMITED

INTRODUCTION

Maxval is an end-to-end commercial real estate solutions and services provider catering to hundreds of companies and governmental organizations in the real estate and construction spheres, across the world.

Location: CBD - Belapur, Station Complex, T-251 – 6th FloorNo. of Employees: 2011 – 2012 - 2002012 – 2013 - 265No. of Departments: 7

HEALTH AND SAFETY COSTYEAR 2011 – 2012

(Maxval Technologies Pvt. Ltd)

COSTS Per Person Per Month Per Year

Health

Easy Health Insurance (200 employees)

Rs. 1,208 Rs.2,41,600 Rs. 28,99,200

First Aid (Medicines) - Rs. 1,500 Rs. 18,000

Yoga and Meditation Sessions - Rs. 1,125 Rs. 13,500

Safety

Fire Safety (Insurance) - Rs.1,00,000 Rs. 12,00,000

Provision for Accidents (200 employees)

Rs. 1,050 Rs.2,10,000 Rs. 25,20,000

First Aid (Injury) - Rs. 1,325 Rs. 15,900

Lift Maintenance ( 2 lifts x Rs. 2,350/lift)

- Rs. 4,700 Rs. 56,400

TOTAL COST Rs. 67,23,000

*Source: HR – Maxval Technologies Private Limited

COSTS Per Person Per Month Per Year

Health

Easy Health Insurance (265 employees)

Rs. 1,208 Rs. 3,20,120 Rs. 38,41,440

First Aid (Medicines) - Rs. 1,750 Rs. 21,000

Yoga and Meditation Sessions - Rs. 1,350 Rs. 16,200

Safety

Fire Safety (Insurance) - Rs. 1,00,000 Rs. 12,00,000

Provision For Accidents (265 employees)

Rs. 1,150 Rs. 3,04,750 Rs. 36,57,000

First Aid (Injury) - Rs. 1,525 Rs. 18,300

Lift Maintenance ( 2 lifts x Rs. 2,650/lift)

- Rs. 5,300 Rs. 63,600

TOTAL COST Rs. 88,17,540

HEALTH AND SAFETY COSTYEAR 2012 – 2013

(Maxval Technologies Pvt. Ltd)

*Source: HR – Maxval Technologies Private Limited

COMPARISON(2011 – 2012) - (2012 – 2013)

Reasons for increase in the costs of Health and Safety Environment

Increase in no. of employees

High Rate of Inflation

Yearly increase in Maintenance Cost

SUGGESTIONS

Should Maintain Records of Accidents, injuries & illness

Should Conduct programme on Health Related Issues on time to time

Should conduct Self Inspection Programme in areas like:

Lighting

Building and Grounds Conditions 

Should provide Safety to Women for travelling purpose, especially for night shifts

CONCLUSION