Please indicate the severity rate of lost days over the year.

  • Radia Guira

Formula:
1000*’Number of lost days due to work accidents’/’Total working hours’
Indicator automatically calculated.

This question is asking your company to provide an estimate of the severity rate of lost days over the course of a year. In more detailed terms, it is inquiring about the frequency of serious incidents that led to employees being absent from work for an extended period of time, whether due to illness, accident or other reasons.

It is asking you to evaluate and compile data on any work-related incidents over the past year which may have resulted in significant time off for your staff and calculate a severity rate based on these instances. This can indicate potential issues related to employee safety and well-being which may, in turn, affect your company’s overall productivity.

Example: Your company may respond with « Our severity rate for lost days over the past year was 0.2. This figure is calculated by taking the number of lost days due to work-related incidents and injuries and dividing it by the total number of hours worked by all employees, then multiplying by 200,000. » This provides a standardized rate, allowing for comparison with industry benchmarks or previous years within your company.

Understanding the Severity Rate of Lost Days

When assessing the health and safety performance of a company, one key metric that stands out is the Severity Rate of Lost Days. This measure indicates the gravity of work-related accidents or illnesses that result in time away from work. Understanding the severity rate is crucial for organizations that aim to enhance their Environmental, Social, and Governance (ESG) performance, particularly in the ‘Social’ aspect, which focuses on employee wellbeing and safety.

The severity rate is calculated by considering the number of lost days due to workplace incidents against the total hours worked. For a detailed explanation of the formula and its implications, you can refer to this comprehensive guide. By analyzing the severity rate, organizations can gain insights into the impact of workplace incidents on their operations and workforce, and subsequently, take more informed actions to mitigate such risks.

Calculating the Severity Rate Accurately

To calculate the severity rate accurately, companies must have a systematic approach to record and monitor workplace incidents. The data collected should include the number of incidents, the nature of the injury or illness, the number of lost days, and the total hours worked by all employees during the period under review.

The basic formula to calculate the Severity Rate is as follows:

Severity Rate = (Number of lost days due to injury or illness × 200,000) ÷ Total hours worked

The multiplier of 200,000 is used to standardize the severity rate per 100 full-time employees, which helps in benchmarking against other organizations or industry averages. A comprehensive guide on calculating incident rates, which also includes the severity rate, can be found here.

Improving Your ESG Scores Through Safety Management

Improving the severity rate of lost days not only reflects positively on your company’s commitment to employee safety but also boosts your overall ESG scores. Stakeholders, including investors and customers, are increasingly considering ESG criteria when making decisions, and having a low severity rate is indicative of a responsible and socially-aware organization.

To enhance your ESG scores, start by analyzing the causes of incidents and lost days, and then implement safety measures to prevent them. Continuous employee training, safety awareness campaigns, and investing in safer equipment can lead to a significant reduction in lost days. Moreover, adopting a safety management system that aligns with international standards can further improve your organization’s performance in this area.

Once you have measures in place, it’s important to track their effectiveness. Regularly update your severity rate calculations and compare them over time. Communicating these improvements to stakeholders can also positively impact your company’s reputation. For an in-depth glossary of ESG terms and metrics, including those related to safety management, visit EcoOnline’s glossary.

In conclusion, accurately tracking and aiming to improve the severity rate of lost days due to workplace incidents is a critical component of managing your organization’s ESG performance. By understanding the implications of this metric and diligently working towards minimizing lost days, your company can demonstrate its commitment to employee safety and wellbeing, which is a significant aspect of the ‘Social’ criterion in ESG. This not only helps in safeguarding your employees but also enhances your corporate image, potentially leading to better investor relations and customer loyalty.