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EVALUATION OF THE EUROPEAN STRATEGY ON SAFETY AND HEALTH AT WORK 2007-2012139actually have measured <strong>the</strong> impact on performance an increase in labourproductivity <strong>of</strong> up to 20 per cent is found when health, security and well-being areimproved. In addition a positive impact on sickness absence is found. Fur<strong>the</strong>rmore,it is found that well-developed company work-life balance policies can also have apositive impact on performance. It becomes easier to recruit and <strong>the</strong> employeeshave an increased tendency to devote high effort to <strong>the</strong> company when it is mostneeded in return for <strong>the</strong> flexibility shown with regards to <strong>the</strong>ir needs. In addition,employee satisfaction is also seen to increase. 158Economic returnsare 3-10 times aslarge as <strong>the</strong>monetary investmentAccording to a keynote speech at a recent seminar held by PEROSH <strong>the</strong> costreducingeffects <strong>of</strong> OSH are well documented. Taken toge<strong>the</strong>r, various studies havea consistent message: well planned and systematically carried out occupationalsafety and health (OSH) measures create economic returns which are 3-10 times<strong>the</strong> monetary investment. This is so, despite <strong>the</strong> difficulties in accurately measuringexactly <strong>the</strong> positive productivity effects <strong>of</strong> work. Systematic literature reviewsindicate that both small-scale measures and comprehensive OSH programs can bepr<strong>of</strong>itable for organisations. 159Several o<strong>the</strong>r studies deliver <strong>the</strong> same message: 160 OSH measures can contributepositively to <strong>the</strong> economic performance <strong>of</strong> <strong>the</strong> individual company through reducedabsence, reduced staff turnover, higher productivity and better product or servicequality if <strong>the</strong> measures are planned and implemented properly.Costs and measures not yet studiedWhat <strong>the</strong> reported studies do not reveal is <strong>the</strong> societal costs <strong>of</strong> <strong>the</strong> accidents at workand <strong>of</strong> <strong>the</strong> occupational illnesses which <strong>the</strong> OSH regulation actually has prevented,i.e. <strong>the</strong> saved costs, although it is <strong>the</strong>se costs which are <strong>the</strong> actual economicbenefits <strong>of</strong> <strong>the</strong> OSH regulation and which <strong>the</strong>refore should be compared to <strong>the</strong>costs <strong>of</strong> <strong>the</strong> administrative burdens <strong>of</strong> <strong>the</strong> regulation. Nei<strong>the</strong>r do <strong>the</strong> reportedstudies include <strong>the</strong> societal costs connected with drafting, issuing, implementingand enforcing OSH legislation. Nor do <strong>the</strong> studies indicate whe<strong>the</strong>r <strong>the</strong> individualpieces <strong>of</strong> OSH regulation and kinds <strong>of</strong> OSH measures are economically sound tosociety and/or <strong>the</strong> individual enterprise. While such studies could be interesting andprovide valuable inputs to considerations regarding reduction <strong>of</strong> <strong>the</strong> administrativeburdens, this would need to be carried out in consideration <strong>of</strong> <strong>the</strong> objectives that158 Oxford Research (2011): Links between quality <strong>of</strong> work and performance, EuropeanFoundation for <strong>the</strong> Improvement <strong>of</strong> Living and Working Conditions, Dublin.159 Ahonen G (2011): "OSH and corporate competitiveness in a global context" in Researchin action. Removing <strong>the</strong> gap between research and practical prevention. Seminarproceedings, Brussels, European Parliament, 25 November 2010, Partnership for EuropeanResearch in Occupational Safety and Health, Brussels.160 See e.g. <strong>the</strong> literature review performed by COWI for The Danish Trade UnionConfederation: Aldrich PT et al. (2010): Arbejdsmiljø set med virksomhedsøkonomiskebriller. (In English: OSH seen with business economic glasses), LO.http://projects.cowiportal.com/ps/A019055/Documents/3 Project documents/Interim and final report/Final report October 2012/OSH <strong>evaluation</strong>-report_Final_submitted 14 March2013.docx
140 EVALUATION OF THE EUREVALUATION OF THE EUROPEAN STRATEGY ON SAFETY AND HEALTH AT WORK 2007-2012140<strong>the</strong> regulation is intended to fulfil and <strong>the</strong> rights and conditions <strong>of</strong> <strong>the</strong> individualworker 161 .5.3.3 Summary <strong>of</strong> findingsThe analysis <strong>of</strong> <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> six objectives <strong>of</strong> <strong>the</strong> <strong>strategy</strong> shows thatintermediate impacts have been achieved and it must be assumed that <strong>the</strong>se impactshave also had a positive influence on <strong>the</strong> level <strong>of</strong> occupational accidents andillnesses.It is well known that <strong>the</strong> number <strong>of</strong> accidents at work and <strong>the</strong> number <strong>of</strong>occupational illnesses are influenced by many factors o<strong>the</strong>r than those covered by<strong>the</strong> <strong>strategy</strong>. Also, <strong>the</strong> causal relationships between actions taken and impactsachieved are complex and interlinked. For this reason, it is not possible to ascertain<strong>the</strong> degree to which <strong>the</strong> European <strong>strategy</strong> in itself has influenced <strong>the</strong> level <strong>of</strong>work-related accidents and diseases.Studies indicate that OSH regulation put administrative burdens on enterprises andthat <strong>the</strong>se burdens load enterprises economically. However, <strong>the</strong> costs <strong>of</strong> <strong>the</strong>accidents at work and occupational illnesses which <strong>the</strong> regulation aims atpreventing are much higher. In addition, OSH measures which are well plannedand systematically carried out can be investments which pay <strong>of</strong>f in economic termsto <strong>the</strong> individual enterprise. Not only OSH regulation but also incentive schemescan encourage proper OSH measures with an economic return which outweighs <strong>the</strong>costs.Given <strong>the</strong> large amount <strong>of</strong> data on costs and benefits <strong>of</strong> OSH regulation andmeasures, it is considered reasonable to assume that <strong>the</strong> European <strong>strategy</strong> has alsogiven rise to positive economic benefits. However, only a proper cost-benefitassessment can analyse <strong>the</strong> extent <strong>of</strong> this impact and whe<strong>the</strong>r it is proportionate to<strong>the</strong> costs <strong>of</strong> developing and implementing <strong>the</strong> <strong>strategy</strong>.The European <strong>strategy</strong> points to <strong>the</strong> benefits <strong>of</strong> direct or indirect economicincentives for prevention measures as regards development <strong>of</strong> awareness,particularly in SMEs. The study on incentive schemes <strong>of</strong> EU-OSHA points to <strong>the</strong>economic benefits <strong>of</strong> such incentives. This could be an argument for focusing moreon this type <strong>of</strong> instrument in a coming <strong>strategy</strong>.161 Referring to Article 31 <strong>of</strong> <strong>the</strong> Charter <strong>of</strong> fundamental rights <strong>of</strong> <strong>the</strong> European Union and<strong>the</strong> right to working conditions which respect <strong>the</strong> workers' health, safety and dignityhttp://projects.cowiportal.com/ps/A019055/Documents/3 Project documents/Interim and final report/Final report October 2012/OSH <strong>evaluation</strong>report_Final_submitted14 March 2013.docx
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