CFTS, the UK’s independent national standard for Thorough Examinations, is warning the hidden costs of skipping legally required inspections of materials handling equipment can be far greater than heavy HSE fines.

While the average fine for materials handling infringements from the HSE is GBP145,000 (USD193,000) according to CFTS, it says the greater risk could end up being reputational damage to a business, and the costs associated with staff, all adding up significantly.

A survey by Sopro has found that 73% of B2B buyers say recommendations play one of the biggest roles in choosing which suppliers to consider, and CFTS adds, this is even more so the case “for the majority of businesses who require workplace machinery inspections”.

CFTS Director Rob Fisher explains: “With a damaged reputation, it becomes that much harder to convert prospects into new customers”. 

“They know they have other options when it comes to getting an inspection, so they take their business somewhere where the operation is working legally,” Fisher continues. “Getting your inspections on time will catch equipment defects early, saving your reputation, and helping to secure new business.”   

The industry body states the cost of lost productivity and staff turnover is far greater in the long-term than the majority of HSE fines for a business that skips an inspection. 

Another recent survey by EcoOnline found 79% of UK workers would consider leaving a position due to unsafe workplace conditions. And while this is alarmingly high, the costs of staff turnover are even more surprising. 

“Replacing a mid-level employee can costs upwards of GBP30,000 (USD40,000) with employee replacement costs being around 75% of the previous employee’s salary,” Fisher continues. “Even when replacing someone on a shorter-term contract or on a lower wage, it’s going to cost you thousands of pounds.

“We see a lot of companies working purely towards a profit margin without realising the underlying costs of not protecting their employees. When people aren’t confident in the equipment they’re using, and the environment they work in, they’re less likely to commit to working for a company for a sustained period. 

“My advice to anyone who is thinking of skipping a Thorough Examination is to do the math first and really consider the long-term financial implications on your business. 

“As well as the costs associated with a damaged reputation and staff turnover, it’s worth remembering that fines from the HSE are frequently six or even seven figures.”