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How workplace incidents are costing Australian businesses billions annually and how to prevent them

13 days ago by
How Workplace Incidents Are Costing Australian Businesses Billions Annually And How To Prevent Them

​Workplace safety isn’t just a compliance checkbox, it’s a billion-dollar issue. From physical injuries to mental health impacts, Australian businesses are losing billions annually due to preventable workplace incidents. But with the right strategies, these costs can be significantly reduced.

The billion-dollar burden of workplace incidents

A staggering example of how minor incidents can lead to major costs is the recent case of a Queensland worker who was awarded $870,000 in damages after tripping over a rubbish bag when startled by a wasp. His elbow was shattered in the fall and he had to have three complicated surgeries. The court upheld the decision, highlighting the employer’s failure to maintain a safe environment and the long-term impact on the worker’s life and career.

Additionally, an Australia Institute report, Investing in Better Mental Health in Australian Workplaces 2021, states that mental health related productivity loss costs Australian business over $15 billion dollars each year.

What’s causing these incidents?

Workplace incidents can be physical, psychological, or procedural. Common causes include:

  • Poor housekeeping and cluttered workspaces

  • Lack of mental health support

  • Inadequate training and supervision

  • Bullying and harassment

  • Pressure to work while sick (presenteeism)

These issues often stem from a culture that prioritises output over wellbeing, or from leadership that lacks awareness of the risks.

Prevention is not just possible—it’s profitable

Preventing workplace incidents isn’t just about avoiding lawsuits; it’s about creating a thriving, productive workforce. Here’s how businesses can take action:

  • Invest in safety audits and risk assessments

Regular inspections and hazard identification can prevent accidents before they happen. Make safety part of your culture, not just your compliance.

  • Foster a mentally healthy workplace

Provide access to Employee Assistance Programs (EAPs), mental health days, and training for managers to spot signs of burnout or distress.

  • Address bullying and harassment head-on

Implement clear policies, encourage reporting, and ensure swift action is taken. A zero-tolerance approach is essential.

  • Encourage sick leave without stigma

Presenteeism is costly. Promote a culture where taking time off to recover is seen as responsible and appropriate, not weak.

  • Train your team

From manual handling to conflict resolution, training empowers employees to protect themselves and others.

Real-life impact: why it matters

The Queensland wasp incident may seem unusual, but it’s a reminder that even small oversights can lead to massive financial and human consequences. As stated by the employee’s lawyer, Paul Zapata, “...the law imposes this really high duty of care to make sure that employees are trained appropriately because they don’t know better.”

When businesses take proactive steps, they not only reduce costs, but build trust, loyalty, and resilience.

Partner with us

Partner with MTC Recruitment to find candidates who value safety, culture, and professionalism. Whether you’re hiring for frontline roles or leadership positions, we’ll help you build a team that protects your bottom line and your people.