What is the economic burden of poor safety practices on GDP?

The economic burden of poor safety practices on GDP is estimated at approximately 3.94%. This figure highlights how ineffective safety measures and workplace accidents can lead to substantial financial losses for businesses and the economy as a whole. Such losses stem from various factors, including increased medical costs, lost productivity due to injuries, and the expenses associated with legal claims and settlements. Moreover, workplaces with poor safety records often face higher insurance premiums and potentially damaging effects on their reputation, which can lead to further economic implications, including the inability to attract and retain talent. By understanding this percentage, organizations can better appreciate the importance of investing in effective safety management systems to mitigate these economic impacts and enhance overall workplace safety.