There are no two ways about it: workplace accidents and injuries can squeeze company’s bottom line. The Occupational Safety and Health Administration (OSHA), United States Department of Labor, estimates that employers pay almost $1 billion per week for direct workers’ compensation costs alone. That’s money that comes directly from profits. Altogether, businesses spend over $170 billion a year on costs linked to workplace accidents, injuries, and illnesses, says OSHA. Put simply, one major accident at a worksite can put a real dent in your company’s profits. But it doesn’t have to be that way. Many of the accidents and injuries that occur on worksites are avoidable if companies had better safety training program. That’s especially true when it comes to contractors and temporary employees. These workers are the weak links in many companies’ safety efforts and the cause of numerous workplace accidents. Put another way, organizations in the hard-hat industries must take a long-term approach to safety training program. Investing in safety training program upfront beats paying thousands (or even millions) in workplace injuries or deaths later on. The True Cost of Workplace Mishaps If you’re like a lot of managers, you don’t realize just how costly worksite injuries and accidents are. That’s because you don’t consider all the indirect costs involved when a worksite mishap occurs. As a result, you ignore these costs when it comes to calculating the true cost of workplace injuries. When added to the direct costs of worksite accidents or injuries, indirect costs can bump up the total costs by thousands or even millions. For some, these costs are the difference between operating in the black or running in the red. They may also be the difference between surviving and failing as a company. What’s more, companies nowadays tend to employ more contract workers than permanent employees. Those in the construction and mining industries, for example, are more prone to workplace injuries than businesses in other markets. Many hard hat companies often use a high number of contractors and temporary employees. They generate a disproportionate number of workplace accidents and injuries. The total cost of fatal/nonfatal injuries in the construction industry, for example, is about $13 billion annually, according to one report. So, if you’re a hard hat company, you need to find a way to reduce workplace injuries and accidents. Determining Direct and Indirect Costs 
Determining the direct costs of workplace accidents, injuries, and illnesses is straightforward. These costs are well known and remain the same whether the accident involves full-time employees or contract workers. These costs include things like the immediate cost of treatment for the worker, physician and hospital bills, prescription medications, occupational therapy, and medical equipment. These costs are easy for managers to determine. You just look at the bills. But indirect costs are often hidden. They tend to fly under a company’s radar, so managers don’t always include them when determining the true cost of workplace injuries. These costs can significantly boost the true cost of workplace accidents. In fact, studies show that indirect costs can often be three to four times the accident’s direct costs. Sometimes, they can amount to as much as 30 times the direct costs. Indirect costs include things like:- Training replacement contractors
- Workplace accident investigations
- Implementing corrective measures
- Repairs to damaged equipment/property
- Surcharges on insurance premiums
- Civil or criminal penalties for safety infractions
