HSE Press Release: E024:05 - 21 February 2005
The Health and Safety Executive is launching a campaign today to persuade businesses that sensible health and safety management is not only beneficial for staff but good for their bottom line as well.
It cites a range of companies who have applied a managed approach and reaped the benefits in terms of improved profitability.
The Minister for Work, Jane Kennedy MP, said: “This is an impressive range of companies who have produced case studies proving that an active approach to health and safety is good for business. In particular the reductions in days lost through ill-health that some have achieved pay off financially and should encourage other businesses to follow their example."
Among the case studies is one from Rolls-Royce plc who realised savings of £11m through an active absence management policy, achieving an absence reduction of around 15% to a rate well below the estimated national average. There was also a detectable fall in the proportion of absence due to stress from around 20% to 16%.
“Companies should adopt absence management policies. They are a positive contribution to help people return to work as soon as is reasonable and they help to significantly reduce costs incurred by avoidable absences,” said their Human Resources Director, John Rivers.
Other examples in the case studies include:
These companies are not alone in recognising the contribution that active health and safety management can make. Sir Digby Jones, Director-General of the CBI, said:
“There is a real and growing body of evidence that effective health and safety management is good for business. Whether it is reduced insurance premiums or claims, fewer staff absences, less turnover and recruitment costs - there are now many examples of how companies have made positive health and safety decisions work for them. The message of sensible and proportionate health and safety is one on which business should act.”
HSE Director General, Timothy Walker, summed up:
“These case studies have a vital role to play in taking forward the business case agenda for health and safety. There are powerful messages coming out of many of them – namely that managing health and safety cannot be viewed in isolation from managing a business overall. The studies highlight the contribution that good communications, sound training and development and meaningful worker involvement all make.”
Workplace accidents and ill health cost the UK economy up to £6.5bn a year. A good deal of this is uninsured costs which employers bear themselves and impacts directly on bottom-line profitability. HSE believes that investment in this area yields positive results in financial as well as personal and societal terms. Enlightened companies realise that good health and safety ultimately makes business sense on many levels.
1. Quotes from businesses:
British Polythene Industries introduced a rehabilitation scheme, which achieved a reduction of over 80% in the number of working days lost due to musculoskeletal disorders (back pain and upper limb problems). Group Health & Safety Manager, Andy Collinson, said:
“This scheme created the solutions we needed in terms of health and safety and occupational health. It was popular with the workforce and their representatives and it made excellent business sense…. In financial terms, the benefits outweigh the costs by 12:1. We were able to make a case for improvement, prioritise areas and demonstrate the impact we have had from hard measurable facts.”
Severn Trent plc reduced their total number of accidents by almost 50% and the proportion of those attributable to musculoskeletal disorders from 75% to around 20% with a resultant decrease in days lost through absence and an anticipated reduction in civil liability claims.
“The fact that good health and safety is good business shouldn't surprise anyone,” Chief Executive Colin Matthews commented. “The same tools and techniques that deliver excellent health and safety performance, also deliver excellent quality and productivity. What tools and techniques? Getting all employees involved, working with good data, recognising that there is no limit to possible improvements.”
2. The seven companies/organisations featured in the case studies are: The Associated Octel Company Ltd, Port of London Authority, British Polythene Industries Plc (BPI), Legoland Windsor, Rolls-Royce Plc, St Regis Paper Company and Wilson James.
3. The Business Case Campaign will be supported by advertisements in National Media, Specialist Trade Press Commercial Radio and Direct Mail.
All enquiries from journalists should be directed to the HSE Press Office
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