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
Results
RESULTS
Your Current Injury Management Costs
Inputs
Number of Employees :
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Average Remuneration:
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Industry Premium Rate:
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Average Net profit:
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Impacts
Serious Injuries:
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Minor Injuries:
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Lost Time Days:
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Other Absences:
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Costs
Premium:
Replacement labour:
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Other Direct Costs:
Indirect Costs:
Total Cost of Injuries:
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Revenue the business must earn to mitigate the impact on profit:
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What would a 20% improvement in your safety performance achieve?
Average for 1000 Employees
Serious Injuries:
Minor Injuries:
Lost Time Days:
Other Absences:
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New Results
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20% Savings
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Costs
Premium:
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Replacement labour:
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Other Direct Costs:
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Indirect Costs:
Total Cost of Injuries:
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Impact on Required Profit:
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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
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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.
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Some of these include;
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Delays of projects and schedules
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Equipment damage
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Investigation of actions and implementation to correct them
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Cost of other government benefits required by injured workers
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Loss of skilled workers
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Overtime pay
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Productivity drops due to team disruption
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Temporary workers to cover the injured worker
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Training of new team members or temporary team members
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Impact on morale
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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;
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Legal fines
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Compensation
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Payment to replace/repair damaged equipment and property.
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Sick pay
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Employment cover
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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:
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Claim Cost Rate:
Across all industries in Australia the average is 1.15%
Reference: Insurance Premium Stimulator Spreadsheet | WorkSafe Victoria.
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Premium Industry Rate:
Across all industries in Australia the average is 1.89%
Reference: Insurance Premium Stimulator Spreadsheet | WorkSafe Victoria.
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Average Salary:
The Australian average salary in 2021 is $90,000.
Reference: Population Australia
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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
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Median Lost Weeks
The average lost weeks for a major safety incident is 7 weeks.
Reference: Data and research | SafeWork Australia
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Median Compensation Paid:
The median compensation paid per safety incident is $12,995.
Reference: Data and research | SafeWork Australia
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Estimated Serious Incidents:
SafetySuite customer data has shown that on average a business of 1000 people can expect 80 serious incidents per year.
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Estimated Minor Incidents:
SafetySuite customer data has shown that on average a business of 1000 people can expect 239 minor incidents per year.
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Cost of Replacement Labour:
Overtime wage rate of 1.5 for hourly employees was based on the FairWork Australia schedule.
Reference: FairWork Australia
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