Injury Rate as an Indicator of Business Success

Abstract

Health and safety professionals and organizations have often suggested that promoting and improving health and safety in the workplace will improve business success. We conducted a study of all new small businesses that registered with the Workers' Compensation Board of British Columbia (WCB of BC) in the years 1993, 1995, 1996 and 1997, assessing their injury rate in the first 5 complete years of business. The data set represents 53,913 new businesses and 19,332 claims. Businesses were grouped by the number of years between registering for WCB coverage and termination of coverage. Injury rates were determined for each calendar year for each industry sector as injuries per 100 person-years, based on payroll information provided by the businesses. Across all industries, businesses that failed between 1 and 2 yr of start-up had an average injury rate of 9.71 while businesses that survived more than 5 yr had an average injury rate of only 3.89 in their first year of business (p<0.000001). The WCB of BC demonstrated a statistical correlation between health and safety in the workplace and the survival of a small business.