top of page

Calculate the Cost of Injuries on your Business

How many employees do you have? 

Enter number only, no comma's - ie. 1000

What is your WorkCover Industry Code (WIC) rate?

Drop down to select WIC rate

What is your average salary per employee?

Aus Industry Average is $90,000

Enter number only, no comma or $ - ie. 90000

What % of your gross revenue is your net profit?

Aus Industry Average is 4.6%

Enter number only, no % - ie. 4.6

CALCULATE

Results

RESULTS

Your Current Injury Management Costs

Inputs

Number of Employees :

--

Average Remuneration:

--

Industry Premium Rate:

--

Average Net profit:   

--

Impacts

Serious Injuries:

--

Minor Injuries:

--

Lost Time Days:

--

Other Absences:

--

Costs

Premium:

Replacement labour: 

--

--

Other Direct Costs:

Indirect Costs: 

Total Cost of Injuries:

--

--

--

Revenue the business must earn to mitigate the impact on profit:

--

What would a 20% improvement in your safety performance achieve?

Average for 1000 Employees

Serious Injuries:

Minor Injuries:

Lost Time Days:

Other Absences:

--

--

--

--

New Results  

--

--

--

--

20% Savings

--

--

--

--

Costs

Premium:

--

Replacement labour: 

--

Other Direct Costs:

--

Indirect Costs: 

Total Cost of Injuries:

--

--

Impact on Required Profit:

--

--

--

--

--

--

--

--

--

--

--

--

--

Customer Examples:

SafetySuite's Hazard Identification Module in a Utility customer led to 63% reduction in serious injuries

SafetySuite's financial accountability initiative in a transport customer led to 58% reduction in serious injuries

The true cost of poor safety practices within your organisation is much higher than you might think

INDIRECT COSTS: 

Indirect costs refer to longer term impacts on the business due to unsafe work environments, even before an accident or incident occurs. According to NSC, indirect costs are $2.12 for every $1 spent on direct costs.

Some of these include;

  • Delays of projects and schedules

  • Equipment damage

  • Investigation of actions and implementation to correct them

  • Cost of other government benefits required by injured workers

  • Loss of skilled workers 

  • Overtime pay

  • Productivity drops due to team disruption

  • Temporary workers to cover the injured worker 

  • Training of new team members or temporary team members

  • Impact on morale

DIRECT COSTS: 

Direct costs of a workplace accident or incident are measurable costs that can be added up by a business following the incident.

 

Some of these include;

  • Legal fines 

  • Compensation

  • Payment to replace/repair damaged equipment and property. 

  • Sick pay

  • Employment cover

  • Other legal costs

The true cost of safety is far more than just your insurance premium.  For every serious claim you will also need to consider lost time (median of 7 weeks), make up pay amounts, wages to cover injury and claim managers compensation and much more.  To really understand the true cost of safety you need to account for a wide range of potential direct and indirect costs. 

Assumptions used to build the calculator:

Claim Cost Rate: 

Across all industries in Australia the average is 1.15%

Reference: Insurance Premium Stimulator Spreadsheet | WorkSafe Victoria.

Premium Industry Rate: 

Across all industries in Australia the average is 1.89%

Reference: Insurance Premium Stimulator Spreadsheet | WorkSafe Victoria.

Average Salary:

The Australian average salary in 2021 is $90,000. 

Reference: Population Australia

Net Profit Estimation:

The net profit margin for all Australian companies across all industries was 4.6% for the 2019-2020 financial year. This is an average across all industries and company sizes, and specific industries and companies can have significantly higher or lower profit margins.

Reference: Australian Bureau of Statistics

Median Lost Weeks

The average lost weeks for a major safety incident is 7 weeks. 

Reference: Data and research | SafeWork Australia

Median Compensation Paid:  

The median compensation paid per safety incident is $12,995. 

Reference: Data and research | SafeWork Australia

Estimated Serious Incidents: 

SafetySuite customer data has shown that on average a business of 1000 people can expect 80 serious incidents per year. 

Estimated Minor Incidents: 

SafetySuite customer data has shown that on average a business of 1000 people can expect 239 minor incidents per year. 

Cost of Replacement Labour:

Overtime wage rate of 1.5 for hourly employees was based on the FairWork Australia schedule. 

Reference: FairWork Australia

image-from-rawpixel-id-3286409-original.jpg

Don't manage safety by accident.

bottom of page