A recent study has found a possible correlation between finances within an organization and the rate of workplace injuries that occur. The gist of the study is that the worse off a company is financially, the greater the risk of workplace injury when compared with more cash-positive businesses in the same niche.
Specifically, the study found that as debts increased, so did the incidents of workplace injury. When negative cash flow problems abounded, injuries were more likely, and the incidents of injury receded if cash flow was more positive. At the same time, injuries in the workplace had a negative impact on cash flow and revenue.
One reason that injuries might increase as debt does is because safety does cost money. If a company is so busy mitigating its debts that it doesn’t or cannot support safety with the right tools, training and other resources, then it’s not surprising that injuries become more prevalent. The authors of the study said that this should be a consideration in policy making. The financial state of a company might be a sign of safety risks, but policymakers should also consider how they might address financial issues to also address safety issues.
Another conclusion that can be drawn from this study is that companies might find themselves in a vicious circle where poor cash flow leads to injury, and then injury leads to more poor cash flow. It does possibly explain why some businesses seem more plagued with work-related accidents than others, even if management and owners are sympathetic to worker needs and safety.
Regardless of whether financial struggles led to your workplace injury, however, you do have options for compensation. Workers’ compensation payments are funded by the insurance plan, not directly by your employer, and if you are having a hard time getting payments, consider speaking to a legal professional.
Source: Science Daily, “How financing constraints affect workplace safety,” Sep. 06, 2016