The Cost of Non-compliance: A Case Study

Info Sep 22, 2020

Did you know that half of small construction business employers are not providing proper work health and safety training to their workers? And about one third of those working in these small workplaces mentioned that not having enough training and education was a primary cause of injuries related to work? 

The following case study shows the potential consequences of a lack of proper training and credentials, especially when working in high risk job sites. This cost an organisation a loss of $150,000 in business income each year, all because they failed to check a single worker’s credentials. This meant that the worker didn’t have the appropriate training to perform the job, which resulted in him experiencing a severe accident; costing the business thousands in compensation claims. 

Health and safety training is essential, particularly in the construction industry, which has high rates of injury and fatality. Despite making up nine percent of the Australian workforce in 2013-14, this industry had 12 percent of work-related fatalities, according to a Safe Work Australia report. In fact, the industry had the fourth highest incidence rate of serious claims per 1000 employees in 2012-13.

Ultimately, this accident could have been prevented by simply having a better compliance system in place. All employers, especially those in high-risk industries such as construction, have the duty to ensure their workers have the appropriate credentials and training to perform the job with the highest level of safety and compliance.  

Hence, it is absolutely pivotal to track your workers’ credentials and the organisations your company works with, to make sure they are qualified to do the job in the safest way possible. And to avoid pesky fines that could have been easily prevented!

The Case of Australian Construction

Melbourne Crane Company (MCC)* was a sub-contractor for Australian Construction (AC)* on an ongoing contract. For one project, MCC provided a crane driver, a crane and a dogman for a specific construction site. AC had safety and compliance procedures in place that ensured that sub-contractors showed proof of credentials for each worker, and details about the crane. Also, the AC site foreman needed to ensure that all workers, including sub-contractors, completed a safety induction test before working on that construction site.

In this case, MCC showed proof of all worker’s credentials to AC. But the dogman for MCC did not complete the safety induction test as required by AC. Ultimately, this meant that the dogman should not have been allowed on site. As a consequence, whilst the dogman was performing a lift between power lines, he was involved in a severe accident, causing him to be electrocuted. Fortunately, the dogman survived but was severely injured.

AC’s internal investigation showed a lack of training and credentials from MCC, and were not happy with their site foreman. They also were unhappy with MCC for employing staff that did not have the appropriate credentials to be on the construction site. MCC’s insurance needed to pay medical expenses and workers compensation, which resulted in increased premiums. It also lost its working relationship with AC due to the breach of compliance, which resulted in a loss of $150,000 in business income each year.

What Could Have Prevented This Situation?

In the case of MCC, simple but effective measures should have been carried out to prevent this situation:

  • Create a list of relevant work credentials and training for each project before hiring workers.
  • Perform thorough background checks on all workers, including subcontractors and any other organisations that are involved in the project.
  • Check that each worker has the required qualifications and training, and ensure credentials are not expired and are up-to-date. Expired credentials are non-compliant, just as having no credentials are. 
  • Clarify to workers and subcontractors that they are not authorised to be on site or perform the job unless they meet the list of qualifications and training.
  • Set up regular compliance checks for all workers and organisations you work with to ensure worker safety and to protect your organisation from the costs of non-compliance, which includes unnecessary penalties and reputation damage.

How CredShare Is Changing the Game in Workforce Compliance

This case study shows how essential it is to require proper credentials and to perform regular compliance checks. But this information is difficult to manage and track, especially with dozens or even hundreds of workers. It’s also a tedious task because credentials can be stored in different locations (email, drive, dropbox) and be in different formats (PDFs, JPGs, hard copy). But it’s all a necessary process to ensure that you keep your workers safe, and to protect your organisation from unnecessary penalties and damages to its reputation. 

That’s where CredShare comes in. Our game-changing platform lets you track your workers’ and sub-contractor’s workers’ credentials, all in one unified dashboard. View thousands of workers and their creds at a glance, manage who’s on which projects, and always ensure that your workforce is compliant. 

  • Ensure 100% compliance from your workforce: With CredShare, you can easily identify workers with missing or expired creds and reduce compliance risks.  
  • Get back your time: You’ll no longer have to waste precious time chasing workers for credentials. Simply list all the credentials that are relevant for a certain project. Spend zero time chasing workers for creds, because it’s now easier than ever to send creds requests.
  • All creds, stored in one place: Another beauty of our platform is that you have all your workforce’s credentials in one place, and all stored on the cloud. This means that you can access and manage them anytime, anywhere.

How CredShare for Business Works:

Our platform is easy to use for any project. Simply follow these steps:

  1. List the specific credentials needed for the project and role.
  2. Send a credential request to each worker with an auto-generated  link.
  3. Workers open the link and upload their credentials, which they share with you.
  4. You have access to all credentials for all workers in one place.

Conclusion

CredShare for Business can assist your organisation to prevent non-compliance and its consequences, especially if you’re working in a high-risk industry. Sign up for a business account today to start tracking and managing  credentials for your next project.

*names have been changed

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