By doing an incident cost analysis, one can determine the amount of funds the organization will spend. The following costs will directly and indirectly billed to the organization.
Incident Cost Calculator Results
TitleDealing with Incident (immediate action)
Time
Hourly Rate
First Aid hrs
Taking Injured person to hospital
3 hrs
Making the area safe of Incident hrs
15.00 n
Putting-out fires
Investigation hrs
Immediate staff downtime (e.g. work activity stopped) hrs
Staff time to report and investigate incident
4 hrs
Meetings to discuss incident
4 hrs
Time Spent with HSE Inspector
4 hrs
Consultant's Fees
40 hrs
Assessing/rescheduling work activities hrs
Recovering work/production (including staff costs) hrs
Cleaning up site and disposal of waste, equipment, products, etc.
Bringing work up to standard (e.g. product reworking time/costs) hrs
Repairing any damage/faults
Hiring or purchasing tools, equipment, plant, services, etc.
Salary costs of injured person
240 dys
Action to safeguard future business
Salary costs of replacement workers
240 dys
Lost work-time (people waiting to resume work, delays, reduced productivity, effect's on other people's productivity, etc.)
48 dys
Overtime costs
48 dys
Recruitment costs for new staff
Contract penalties
Reassuring customers
Providing alternative sources of supply for customers
Sanctions and penalties
(HSE Form).
These costs do not even include what the employee may be losing due to the injury. As the case is still pending further direct and indirect costs may escalate due to court fees and further compensation due. A rough estimate of personal cost to the employee is as follows:
Employee Expenses List:
Housing: £800.00 for 2 months = £1600
Food: £200.00 for 2 months = £400
Utilities: £200.00 for 2 months = £400
Petrol: £100.00 for 2 months = £200
Personal Items: £100.00 for 2 months = £200
Insurance: £100 for 2 months = £200
Weekly Doctor visits: £15 for 2 months = £120
Medications: £15 every 2 weeks = £60
Total: £3200
Please keep in mind this is a general list of everyday household expenses and does not include any other monthly expenses a person may have such as student loans, auto payments or credit cards.
Conclusion
Upon analyzing the number, it is safe to say that an incident of this nature can be quite costly not only in monetary terms but also regarding time and loss of opportunity for both the organization and the employee. This is why taking steps to elevate risk in the workplace is so important.
Works Cited
Injury Costs. 13 Jan. 2005 http://www.hse.gov.uk/costs_of_injury/costs_of_injury.asp..
Business Costs
