Healthcare standards at the workplace in the US are feeling the pinch of the economical recession. This is the conclusion reached by the Society for Human Resources Management (SHRM) Conference held in Las Vegas last month.
It appears that, as the cost of benefits increase, employers are reducing some of this type of expenditure. In fact, the SHRM Employee Benefits Research Report shows that employers are reducing the amount allocated for healthcare because of cost controls and the sharp rise in premiums, some by as much as eight to 10 per cent a year. Of the HR professionals surveyed, 77 per cent said that the state of the economy had negatively affected the benefits they were able to offer their employees.
However, cutting back on things that affect the wellbeing of employees may have not only social ramifications but also commercial ones. The test for employers to show their commitment to their employees is shown when there is a crisis. During the 2008/2009 recession, some forward-looking employers held on to their workforce despite diminishing market demand and an uncertain future and these organisations were among the first to kick-start their production lines and venture into new markets. The reports coming out from the Chartered Institute of
Personnel and Development and the Boston Consulting Group clearly demonstrate that these companies have withstood the test of time and their employees were ready and raring to go when the recession began to subside. It is a similar case with employee benefits. Investment in health and safety in the workplace suggests that employers really care about their workforce and, far from going unnoticed, this has a positive effect on the staff in the form of engagement and commitment. In countries like the US, health and safety standards are rigorously monitored and inspected and while it is apparent that OHS standards in Malta have improved, the country is still a long way from having a culture of safety at work, especially in the manufacturing and construction industries.
In fact, many places of work operate below standard in this respect, while employees go through their normal working day either oblivious to the risks involved or preferring not to complain for fear of repercussions. The recent statement by the General Workers Union regarding the tightening up of occupational safety standards is welcomed both for its social implications and because creating a culture of safety has never been more important: the cost of managing absenteeism caused by accidents at the workplace has never been so high.
In Malta, for instance, 754 people were involved in accidents at work in the months of April, May and June this year, according to NSO statistics. Superficial injuries and dislocations, strains and sprains were the most common accidents occurring mainly in manufacturing (25.3 per cent), construction (16.1 per cent) and transport, storage and communications (12.6 per cent). Despite the fact that the number of injuries has fallen by 12.5 per cent compared with 2010, the Occupational Health and Safety Authority (OHSA) chief executive officer Mark Gauci said: “Most of these accidents are preventable and still happen because of unsafe practices.”
GWU deputy secretary-general Michael Parnis considers the number of accidents in the workplace to be very high for such a small country and identified the manufacturing and construction sectors as the two working environments that fail to offer adequate safety standards. This is further exacerbated by the fact that these sectors are struggling with the recession, as indicated by figures from the Central Bank that reveal a deterioration in business confidence and a downturn in employment prospects. Mr Parnis feels strongly about what he calls “an insufficient number” of inspectors to assess safety and security at the workplace. He points out that there are 10 inspectors with the OHSA and considering that they work in pairs, the maximum number of inspections that can be carried out in a day is five. And this does not take into account staff sick leave and vacation leave. Dr Gauci, however, presents a different view and claims that the OHSA can rely on 14 field inspectors to ascertain the degree of compliance with legislation.
Dr Gauci firmly believes that inspections: “while having an important role in safeguarding OHS standards, shouldn’t be perceived as the only way by which to reduce accidents and improve standards”. That is why, as far as he is concerned, “The OHSA has been very active in raising awareness, disseminating information and updating the legislative framework”. Moreover, he said that the authority “has been making employers aware of their respective duties and responsibilities and helping them to become fully compliant with the legislation”. Nevertheless, a culture of safety at the place of work will only come about when employers and employees commit to the value of health, irrespective of the economic climate. Having an effective regulatory agency helps as well.
Ms Garcia Reche is a Spanish journalist at the Foundation for Human Resources Development.
