Workplace accidents can be expensive for any corporation. Management often can brush away accidents and injuries by stating that it is just part of doing business. Some may look at accidents in terms of the dollar costs of treating injured employees, replacing injured employees, replacing broken machinery, etc. Accident-related expenses often go much deeper than what meets the eye. Hence, the iceberg effect. The visible tip of an iceberg represents only a tiny fraction of its true impact, just like the immediate costs of an accident. Managers understand the acute impact of workplace injuries — medical bills, damaged equipment and downtime — but the hidden costs lurking beneath the surface are even more devastating. Accidents come with substantial costs that often go unnoticed until they start piling up. Here are some common ones. • Loss in Productivity: When an accident happens, work slows down or stops entirely, resulting in delays and inefficiencies. For example, your only transmission mechanic breaks an arm and is gone temporarily for six weeks on disability. You must find a substitute. For calculation purposes, the tech was paid $40/hr. Your labor rate is $240/ hour. The $200 differential at 40 hours/week is $8,000 weekly. For six weeks of downtime, you lost $48,000. Lost time is serious money! • Employee Replacement Costs: If the employee is permanently disabled, you need to hire another mechanic. Lube techs may come easily; a master mechanic is likely more difficult to lure to your store. According to the 2023 NADA Dealership Workforce Study, the average cost to recruit and onboard a new hire is $5,000. Time to fill is another factor, impacting overall costs. According to DHI Group’s Hiring Indicators 2017 Report, the retail industry had a time-to-fill average of 25 days. That’s 25 days of customers waiting for a specialist to repair their vehicle. • Training Costs: Companies spend significant time and money training new hires in the company standards and their way of conducting business. According to the NADA Study, the average training cost for dealership employees is $1,200. These can spin upward of $10,000 per employee, depending on their skill level and job, according to CBTNews! Iceberg Effect The Hidden Costs of Accidents By Sam Celly, MS, JD, CSP, Celly Services Inc. 22 SAN DIEGO DEALER
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