Pressure to Meet Earnings Expectations Increases Risk of Injury to Employees

Benchmarks on earnings and production are supposed to increase company profits, but a new study has shown that there are some serious drawbacks – especially for employees. More specifically, workers have an increased risk of a work injury or illness if their company is under pressure to meet earnings or production expectations. Just how bad is the problem, what does it mean, and what can employees do if they experience an injury on the job? The following explains.

While comparing the injury and illness rates of 868 different firms from a variety of industries over a nine-year period (2002 to 2011), investigators found a 5 to 15 percent increase in employee injuries and illnesses when companies struggled to meet their earnings expectations. These same companies also had significantly higher injury rates that companies that had comfortably beat their earnings forecast. Investigators say this can be attributed to at least two major factors: increased workloads and reduced spending on safety-related expenditures.

Investigators said employees often work harder, for longer, and often take shortcuts that slow production if they are under pressure to meet production expectations on the job. They are also less likely to report a minor illness or injury, which can increase their risk of a more severe injury. What is more, managers within the company may overlook safety violations and may look for ways to cut cost, such as not providing safety-related training or not staying on top of equipment maintenance schedules. If safety erosion reaches this point, injury and illness rates may spiral completely out of control.

Employees have the right to a safe work environment. They also have the right to pursue compensation whenever they are injured on the job. Further, if their injury is related to the negligence of a third party or defective machinery, the employee may be entitled to additional compensation for any injury, illness, or disability they may have experienced while on the job.

If you or someone you love has been injured on the job, contact Corsiglia, McMahon & Allard, LLP for assistance. Dedicated and experienced, our San Jose work injury lawyers will fight to get you the fair compensation you deserve. In every situation, we pursue the most favorable outcome possible. Schedule your personalized consultation to get started. Call us at (408) 289-1417 today.

• Research: Workplace Injuries Are More Common When Companies Face Earnings Pressure