And although 80 per cent rate the wider attitude towards managing EHS in their organisation as high or very high, this has fallen from 84 per cent. Seven in 10 (72%) describe the overall safety culture in their business as high or very high, but this has slipped from 76 per cent a year before.
Hugh Maxwell is Managing Director of Maxwell Safety. He says he’s already seeing the impact of tighter economic conditions and a prevailing attitude of caution. “We’re already seeing budget cuts and less reinvestment in terms of systems, training and mental health,” he says. “There doesn’t seem to be a longer-term, sustainable approach to create psychological safety, where welfare and wellbeing is as strong as it should be.”
Steven Harris, Managing Director of Integrity HSE, says there are several risks that come with this. “The loss of production is huge,” he says. “From my experience, for every pound of direct insured cost as a result of an HSE incident, there’s eight to 32 times as much in uninsured costs.
“This would mean if you have a forklift truck incident in your plant, and it costs you £10,000 in direct cost, it’s going to cost you anything from £80,000 to a third of a million pounds to put things right. The uninsured costs come down to potentially replacing the person that was there, training a new person, the investigation, the loss of reputation and the increased insurance costs.”
There are signs that cutting corners is starting to impact safety, as a health and safety consultant from the construction sector relayed: