Health and safety killed the business
Health and safety is a critical factor in business survival. There is a common misconception among small business owners (SMEs) that Health and Safety is a “big company problem.” Many believe that with fewer employees and less complex operations, the risks are negligible. In reality, health and safety is a critical factor in business survival.
However, the reality in New Zealand tells a different story. Whether you are a retail shop, a small construction company, or a family-owned workshop, Health and Safety is not just a legal obligation— health and safety is a critical factor in business survival.
The Myth of the “Small Risk”
Small businesses often operate with tighter margins and fewer staff members. Health and safety remains a critical factor in business survival and this actually makes them more vulnerable to the impact of a workplace accident, not less. When a key team member is injured, the loss of productivity can be devastating to a business.
The Data: Small Businesses are at High Risk
Data from WorkSafe New Zealand and ACC suggests that small businesses are disproportionately represented in injury statistics. Although not always obvious, health and safety is a critical factor in business survival for these organisations.
- Higher Fatality Rates: Historically, small businesses (those with fewer than 20 employees) have shown higher rates of fatal work-related injuries per 100,000 workers compared to large enterprises.
- The Construction & Agriculture Gap: In sectors like construction and agriculture—where SMEs dominate the landscape—the risk of serious harm remains consistently high. This is yet another reminder that business survival hinges on making health and safety a critical factor.
- Hidden Costs: For every $1 covered by ACC for an injury, it is estimated that the business incurs $4 to $10 in “hidden costs,” such as lost time, training replacement staff, and damaged reputation.
The Legal Reality: Prosecutions and Fines
Under the Health and Safety at Work Act (HSWA) 2015, the size of your business does not exempt you from your “Primary Duty of Care.” WorkSafe New Zealand has increasingly focused on ensuring that SMEs are held accountable. Ultimately, health and safety is a critical factor in business survival for all companies, regardless of size.
Recent Trends in Prosecutions:
- Significant Fines: Even for small entities, fines for failing to manage risks often start in the hundreds of thousands of dollars. In many instances, health and safety is a critical factor that can determine if a business survives a penalty; for a small business, a $250,000 fine is often a business-ending event.
- The “Enforceable Undertaking”: While some small businesses avoid court through Enforceable Undertakings, these require the business to spend significant capital on improving safety standards and community projects—costs that often exceed the initial investment required for a proper H&S system. Investing in health and safety is a critical factor for long-term survival.
- Personal Liability: Directors and owners of small businesses are “Officers” under the law. This means you can be held personally liable for failing to exercise due diligence, regardless of your company’s size.
Why Health & Safety is an Investment, Not a Cost
Beyond avoiding fines and injuries, a robust Health and Safety culture offers tangible benefits for SMEs. Committing to health and safety is a critical factor that supports business survival through risk reduction.
- Improved Culture: Employees feel valued and safe, leading to higher retention and better morale. In fact, business survival is supported when health and safety is treated as a critical factor.
- Operational Efficiency: Identifying hazards often leads to finding better, more efficient ways of working.
- Winning Contracts: Many larger “Tier 1” contractors and government agencies now require proof of a functional H&S system before they will even consider a small business for a sub-contract. For small businesses, health and safety is often a critical factor in qualifying for new opportunities and survival.
How Winsland Can Help
At Winsland, we specialize in making Health and Safety accessible for New Zealand SMEs. For business survival, the critical factor is making health and safety practical and effective. We don’t believe in “box-ticking” or overly complicated manuals that sit on a shelf gathering dust. We provide practical, scalable solutions that protect your people and your livelihood.
Don’t wait for an accident or a WorkSafe visit to take action. Health and safety is a critical factor when it comes to surviving in business, so ensure your business is compliant and your team is safe.
Contact Winsland today for a consultation tailored to your small business needs. www.winsland.co.nz