The presence of inspectors from the Occupational Safety and Health Administration (OSHA) at a company’s door is usually the cause for concern for employers. A new study out of Harvard Business School finds that this probably shouldn’t be the case. The data suggests that regular inspections by OSHA actually help employers reduce their workers’ compensation claims and actually add money to the company’s profits. This is great news for North Carolina workers as many preventable workplace injuries occur everyday.
The research was co-authored by professors from Harvard Business School and the UC-Berkeley School of Business. The researchers started their study by examining workplace safety inspections that were conducted by the California branch of the OSHA, and focused on the impact of these inspections on workers’ compensation claims and costs.
The study, Randomized Government Safety Inspections Reduce Worker Injuries with No Detectable Job Loss, found that when OSHA conducted safety inspections, it actually reduced the number of injuries that occurred in the workplace, helping employees and, in the long run, employers. This is because a reduced number of injured workers result in a reduced cost to employers for time spent out of work and the expenses associated with workers’ compensation claims.
The study also showed that there was no detectable harm to the company’s profits as a result of any of the OSHA inspections. On the contrary, the researchers say that frequent inspections by OSHA actually help boost a company’s coffers, because the company consistently spends less on workers’ comp claims.
The study showed that certain high-risk industries that had the highest number of injuries were the ones that benefited most from frequent inspections. Workplaces that were placed under regular inspection by OSHA were able to reduce their workers’ compensation claims by a surprising 39.4%. These same high-risk companies were also able to save 26% on their workers’ comp costs over the span of the four-year study. On average, researchers found that companies that had been through the regular inspection process were able to save as much as $355,000.
Employers should be looking closely at the results of the study. The study shows that it makes good business for employers to invest in workplace safety, and, as hard as it is to believe, look forward to inspections by OSHA. The company’s bottom line can benefit as well as the safety and security of workers.
The workers’ compensation lawyers in Charlotte, North Carolina at Arnold & Smith, PLLC are experienced in the realm of workers’ compensation. If you are having difficulty obtaining workers’ compensation benefits from your employer, please contact the workers’ comp attorneys in Charlotte, North Carolina at Arnold & Smith PLLC today for a free consultation at 704-370-2828.
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