This is a reprint of a blog written for, and at the specific request of, Argyll Lone Worker (http://www.argyll-loneworker.co.uk/). Andy Farrall is delighted to be working with Argyll as a specialist adviser to their clients on health & safety issues.
What they know, and have proved, is that effective health & safety management – often maligned as bureaucratic nonsense – is actually a very good way of increasing their profits.
Let me repeat that bombshell: good health & safety management makes you money!
Sounds ridiculous, doesn’t it? It goes against all the pundits and soothsayers who’ll tell anybody within earshot that “elf’n’safety” is a waste of time; that it’s all “common sense”; that it’s just mindless paper pushing by clipboard jockies; that …. well, you’ve no doubt heard them all before.
But – shock/ horror – the prophets are wrong about the profits! (Sorry, couldn’t resist it).
Don’t just take my word for it. You can see their case studies, and those of other companies both large and small, on the Health & Safety Executive (HSE) website at: http://www.hse.gov.uk/business/casestudy.htm
Put simply, the companies in these studies have proved that money invested in effective safety management can result in a substantial positive effect on their bottom line.
In the case of Royal Mail, for example, a system costing about £160,000 per year to implement and manage resulted in savings in the region of £370,000 per year, i.e. an increase in actual profits of about £210,000 per year.
However, what does not appear on the bottom line are the indirect benefits of having effective safety management in place. So let’s look at these benefits in a bit more detail.
It follows that if you manage health & safety effectively then the chances of your staff being involved in an accident – especially those staff involved in lone working, such as delivery drivers – are greatly reduced. That, after all, is the whole point of health & safety.
And if the chances of an accident occurring are minimised then the possibility of the company having to face subsequent legal action is also minimised. So far, so good.
But, is legal action for a health & safety breach really that much of a threat to the company? Or is it just like getting a corporate parking ticket – an annoying irritation, so you simply pay up and move on?
Oh, if only it were that simple! But since when has a parking ticket – even one you’ve paid – had the power to follow you like a curse for maybe five years?
You see, that’s what can happen if your company is convicted of a breach of health & safety.
Not only is there the fine to consider (up to £20,000 per breach at the Magistrates’ Court, or an unlimited amount at the Crown Court) but there is also the effect on the company’s ability to gain further work.
Let me explain this often forgotten point.
If your company tenders for work with corporate clients, government departments or local authorities then you will be asked to complete a Pre-Qualification Questionnaire (PQQ) as part of the tender process. And within that PQQ will be a question about your company’s health & safety history.
Oh dear! This is where your health & safety conviction really starts to bite.
There will be a question asking you if your company has been convicted of a breach of health & safety within the past (probably five) years. You’ll have to answer “Yes” to this question because the company’s conviction is a matter of public record and will be shown on the HSE prosecutions database (http://www.hse.gov.uk/Prosecutions/).
And what will your prospective client do with your application once you’ve admitted your conviction for a breach of health & safety? In all probability they’ll file your application in the nearest waste bin.
And that will keep on happening while the conviction remains “live” as far as the PQQ is concerned.
Let’s be clear that your potential client is not being superior, or self-righteous. It’s because they have a clear legal obligation to employ only competent contractors, and it’s difficult to defend as competent a contractor with a proven track record for breaching health & safety. They have no option.
There are other factors to consider, such as minimising the chance of being prosecuted for corporate manslaughter, or facing civil proceedings seeking damages for negligence, but space is limited and these may be topics for further articles.
So, with our limited space in mind, let’s take stock. What have we established (with the help of numerous companies large and small)?
We have seen clear evidence that effective safety management can actually improve the bottom line, and we have also considered (albeit briefly) the potentially catastrophic damage (in both the short term and long term) that a breach of health & safety can cause to a company’s viability.
Now it’s up to you.
You may still wish to believe the soothsayers and the urban myths; or you may choose to go with hard facts and cold logic. It’s your choice, but bear in mind that Chep UK, the Royal Mail, and all the others have already made their decision ……!!