The True Cost of Workplace Injuries

Each year, over 1 million musculoskeletal (MSK) injuries occur in the American workforce,

leading to over 100 million workdays lost and more than $500 billion in direct & indirect costs. It is no secret that aside from payroll, workplace injury is the second leading cost to employers and has a significant impact on the bottom line. Workplace injuries take a toll on both companies and their hardworking employees, leading to decreased productivity, elevated employee turnover rates, and decreased morale. 

Direct vs. Indirect Costs

Direct costs are not difficult to pinpoint. The most significant and recognizable direct cost are workers compensation claims. While the price of an individual claim can vary for different employers, The National Council on Worker’s Compensation (NCCI) reported the average cost for a single workplace injury claim is approximately $40,000. You can think of direct costs as the visible financial impact that stems from the injury/accident and the employee's recovery.

Indirect costs aren't as visible but are even more significant. Indirect costs include but are not limited to, lost productivity, recovery of lost productivity with new hires or temporary employees, OSHA fines, increased insurance premiums, human resources, legal defense, etc. Studies have found that indirect costs can be anywhere from four to 17 times greater than the direct costs of a particular incident. This would push the average total cost for a single workplace injury to well over $100,000. Indirect costs can show up months and even years later, especially when considering increased insurance premiums.

How to Reduce The Impact of Injury

Research has shown that employers can expect at least a 4:1 ROI when investing in workplace safety. By implementing an upstream, direct-to-employer approach, companies can significantly impact their employee's safety, performance, and, ultimately, their bottom line.

WORKFORM combines expert knowledge in biomechanics and ergonomics to help employees become more resilient to injury. By offering unique and tailored services, including on-site injury prevention, work performance, ergonomic consulting, new hire/return to work coaching, and early intervention, WORKFORM can help keep your employees safe, maximize their productivity, and reduce costs.

Contact us if you want to find out more about our free workplace evaluation and services. Together, we can make a greater impact on occupational health.