Many have criticized the effectiveness of workplace safety inspections by government over the years, and some even claim that they can damage competitiveness and destroy jobs ? without making workplaces safer. But new research about how safety inspections affect the bottom line was released late last week, and its authors have challenged these claims. The report shows randomized inspections by government can reduce worker injuries without bringing higher costs or job losses.
The report, published in the Science Journal, compared hundreds of randomly inspected workplaces in California to hundreds that were eligible (but not chosen) for inspection. The findings ultimately showed that the workplaces that ?randomly inspected employers experienced a 9.4% decline in injury rates and a 26% reduction in injury cost.? In addition, the report?s authors found ?no evidence that these improvements came at the expense of employment, sales, credit ratings or firm survival.?
If those numbers are just numbers to you, consider the dollars involved. According to the study, businesses that undergo random inspections saved an average of $355,000 in injury claims and compensation for paid lost work over the four years following the inspections. Business Week?s report on the study noted that randomly inspected companies saved an average of 26% on workers? compensation costs in the four years following an inspection (compared to businesses that were not inspected). One of the study?s authors estimates that inspected businesses are seeing about $6 billion in added value from being part of a system that involves random inspections by government.
The study was prepared by three authors ? David Levine, Michael Toffel and Matthew Johnson ?affiliated with Harvard Business School, Boston University?s Department of Economics, and the Haas School of Business at the University of California. In other words, it?s a solid study by reputable researchers in the business world. And, according to the Science Journal?s coverage, it could be used as a model for testing the effects of future regulations on workplace safety and business.
?These inspections ironically appear to be creating value for the firms that they are visiting in terms of reduced workers? comp costs and frequency of injuries,? Toffel told the Huffington Post.
If you happened to read about this study over the weekend, you?re probably not surprised that we noticed it here at Field ID and Modern Safety. Of course, you?ll know we help businesses achieve constant readiness for any random inspection by providing the world?s most robust and easy-to-use inspection software. But we don?t just aim to make safety and compliance as simple as possible. We also want to boost efficiency for our users while reducing costs.
Our team found this research to be a refreshing reminder that siding with better safety, overall, will always lead to great results.
Tags: Inspection Management, inspections, safety inspections, workplace safety
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.