| Literature DB >> 26695869 |
Christopher M Doran1, Rod Ling2, Jorgen Gullestrup3, Sarah Swannell4, Allison Milner5.
Abstract
BACKGROUND: Little research has been conducted into the cost and prevention of self-harm in the workplace. AIMS: To quantify the economic cost of self-harm and suicide among New South Wales (NSW) construction industry (CI) workers and to examine the potential economic impact of implementing Mates in Construction (MIC).Entities:
Keywords: Mates in Construction; cost; economic; prevention; self-harm; suicide; workplace
Mesh:
Year: 2015 PMID: 26695869 PMCID: PMC4901996 DOI: 10.1027/0227-5910/a000362
Source DB: PubMed Journal: Crisis ISSN: 0227-5910
Summary of key parameters used in costing analysis
| Cost category | Description | Source |
|---|---|---|
| Value of lost production | Average weekly earnings (AWE) × average duration of absence (by severity category); AWE × average duration of absence × 0.4 | |
| Staff turnover costs | The cost of replacing existing staff affected by work-related incidents (26 weeks of AWE) and training of new staff (2.5 weeks of AWE) | |
| Loss of income | For full incapacity or fatality: loss of earnings from time of injury to retirement age (i.e., < 6 5years), discount rate = 4.1%, inflation rate = 2.8%, productivity rate = 1.6%. For full incapacity, future earnings includes average social welfare payments received (since these contribute to post-injury income) | |
| Loss of government revenue | For full incapacity or fatality, taxation and other revenue foregone when workers are unable to work due to work-related incidents | |
| Social welfare payments | Sickness and social welfare payments borne by the government for people with disabilities (disability support pension payments of AU $700 per fortnight "in 2010 dollars" discounted to present value over the period between the incident and reduced life expectancy | |
| Medical costs | Average medical costs from national dataset for compensation-based statistics | |
| Investigation costs | Investigation costs: As a proxy for the costs to firms, investigation and inspection costs reported in jurisdictional annual reports are assumed to match the cost to employers for these functions | |
| Travel expenses | Payments made for travel expenses to workers' compensation jurisdictions by claimants (as a proxy, assuming that compensation is adequate to cover these expenses) | |
| Funeral expenses | Average funeral costs are estimated at AU $4,000 | |
| Transfer costs | The redistribution of public sector resources to care for incapacitated person incurs deadweight costs on society – for every dollar of tax raised, about 28.75 cents is absorbed in the distortions induced and the administration of the tax system | |
| Carer costs | For full incapacity, the additional cost of care (estimated applicable disability support pension payments of AU $2,056 per annum, discounted to present value over the period between the incident and reduced life expectancy) | |
| Cost of aids, equipment, and modifications | For full incapacity cases only, the present value of future costs for aids and modifications (estimated applicable disability support pension payments of AU $646 per annum, discounted to present value over the period between the incident and reduced life expectancy). | |
| Postvention costs | Cost associated with bereavement for six family/friends – estimated at Au $14,058 per person; employer cost associated with providing counseling and time off work for three colleagues who may have witnessed fatality – estimated at AU $10,000 from time of incident to return to full duties | |
Data underpinning measurement of effectiveness of Mates in Construction
| QLD pre-MIC period | Number of suicide deaths | Construction industry workforce | QLD post-MIC period | Number of suicide deaths | Construction industry workforce |
|---|---|---|---|---|---|
| 2003 | 36 | 115,000 | 2008 | 45 | 174,050 |
| 2004 | 51 | 126,375 | 2009 | 43 | 172,475 |
| 2005 | 41 | 145,250 | 2010 | 45 | 164,950 |
| 2006 | 30 | 154,275 | 2011 | 53 | 168,625 |
| 2007 | 49 | 168,050 | 2012 | 36 | 161,325 |
| Total | 207 | 708,950 | Total | 222 | 841,425 |
| QLD pre-MIC suicide rate | 29.20 | QLD post-MIC suicide rate | 26.38 | ||
| QLD pre-MIC suicide rate lower 95% CI | 25.22 | QLD post-MIC suicide rate lower 95% CI | 22.91 | ||
| QLD pre-MIC suicide rate upper 95% CI | 33.18 | QLD post-MIC suicide rate upper 95% CI | 29.85 | ||
| QLD RRR | QLD RRR (lower 95% CI) | QLD RRR (upper 95% CI) | |||
| QLD post-MIC rate/QLD pre-MIC rate | 0.904 | 0.909 | 0.900 | ||
| Equivalent percentage change in suicide risk | –9.6% | –9.1% | –10.0% | ||
| NSW pre-MIC period | Number of suicide deaths | Construction industry workforce | |||
| 2008 | 43 | 224,925 | |||
| 2009 | 37 | 206,050 | |||
| 2010 | 57 | 212,700 | |||
| 2011 | 42 | 209,350 | |||
| 2012 | 42 | 215,475 | |||
| Total | 221 | 1,068,500 | |||
| NSW pre-MIC suicide rate | 20.68 | ||||
| NSW pre-MIC suicide rate lower 95% CI | 17.96 | ||||
| NSW pre-MIC suicide rate upper 95% CI | 23.41 | ||||
| NSW construction industry workforce 2013–2017 | 1,050,518 | ||||
| Mean | Lower 95% CI | Upper 95% CI | |||
| Est. no. of suicides in NSW 2013–2017 no MIC (i.e., NSW pre-MIC rate) | 217 | 189 | 246 | ||
| Est. no. of suicides in NSW 2013–2017 with MIC (i.e., QLD RRR) | 196 | 171 | 221 | ||
| Est. difference in suicide number (over 5-year period) | 21 | ||||
| Est. reduction in suicides (per year) | 4.19 | ||||
| Est. reduction in suicides attributable to MIC (per year) | 0.40 | ||||
| Est. reduction in full incapacity cases attributable to MIC (per year) | 1.01 | ||||
| Est. reduction in short absence case attributable to MIC (per year) | 4.92 | ||||
Mates in Construction activities in Queensland, 2008–2013
| Year | Queensland construction industry workforce | General awareness training | GAT cumulative | Proportion of workforce exposed to GAT | Connector training | ASIST training |
|---|---|---|---|---|---|---|
| 2008 | 174,050 | 730 | 730 | 0.4% | 55 | 0 |
| 2009 | 172,475 | 3,174 | 3,904 | 2.3% | 227 | 30 |
| 2010 | 164,950 | 5,465 | 9,369 | 5.7% | 333 | 54 |
| 2011 | 168,625 | 7,274 | 16,643 | 9.9% | 478 | 47 |
| 2012 | 161,325 | 9,588 | 26,231 | 16.3% | 507 | 52 |
| 2013 | 161,325 | 9,530 | 35,761 | 22.2% | 793 | 55 |
Cost of suicide and suicide behavior among New South Wales construction industry workers, 2010 (in Australian dollars)
| Employer | Worker | Government | Total | ||
|---|---|---|---|---|---|
| Short absence | |||||
| Production disturbance costs | $258,834 | $0 | $0 | $258,834 | |
| Human capital costs | $0 | $0 | $0 | $0 | |
| Medical costs | $354,825 | $0 | $0 | $354,825 | |
| Administrative costs | $19,870 | $2,839 | $19,870 | $42,579 | |
| Other | $0 | $0 | $0 | $0 | |
| Transfer costs | $0 | $0 | $0 | $0 | |
| Subtotal | $633,529 | $2,839 | $19,870 | $656,238 | |
| Full incapacity | |||||
| Production disturbance costs | $6,085,272 | $0 | $0 | $6,085,272 | |
| Human capital costs | $0 | $0 | $364,416,944 | $364,416,944 | |
| Medical costs | $72,675 | $280,707 | $1,590,674 | $1,944,056 | |
| Administrative costs | $345,061 | $53,053 | $398,114 | $796,227 | |
| Other | $0 | $0 | $13,080,842 | $13,080,842 | |
| Transfer costs | $0 | $0 | $18,127,194 | $18,127,194 | |
| Subtotal | $6,503,008 | $333,760 | $397,613,767 | $404,450,535 | |
| Fatality | |||||
| Production disturbance costs | $2,386,381 | $0 | $0 | $2,386,381 | |
| Human capital costs | $0 | $0 | $105,281,868 | $105,281,868 | |
| Medical costs | $28,500 | $20,777 | $117,734 | $167,010 | |
| Administrative costs | $163,590 | $228,000 | $163,590 | $555,180 | |
| Other | $1,710,000 | $0 | $4,807,836 | $6,517,836 | |
| Transfer costs | $0 | $0 | $7,108,704 | $7,108,704 | |
| Sub-total | $4,288,471 | $248,777 | $117,479,732 | $122,016,979 | |
| Total | $11,425,008 | $585,375 | $515,113,369 | $527,123,752 |
Potential economic savings from implementing Mates in Construction in the NSW construction industry (in Australian dollars)
| Type of incident | Number of averted incidents | Average cost per incident | Total cost savings | % Savings to government |
|---|---|---|---|---|
| Short absence | 4.92 | $925 | $4,554 | 3% |
| Full incapacity | 1.01 | $2,782,597 | $2,806,585 | 98% |
| Fatality | 0.40 | $2,140,649 | $846,707 | 96% |
| Total | 6.33 | $3,657,846 | 97% |
Sensitivity analysis of key parameters (in Australian dollars)
| Parameter varied | Number of averted incidents | Economic savings per year | Cost of Mates in Construction | Benefit–cost ratio |
|---|---|---|---|---|
| Proportion of suicide attempts resulting in full incapacity | ||||
| Sensitivity 1 = 12% | 6.33 | $2,832,654 | $800,000 | 3.54 |
| Baseline = 17% | 6.33 | $3,657,846 | $800,000 | 4.57 |
| Sensitivity 2 = 22% | 6.33 | $4,483,038 | $800,000 | 5.60 |
| Attribution of Mates in Construction to averted suicide and suicide attempts | ||||
| Baseline = 9.4% | 6.33 | $3,657,846 | $800,000 | 4.57 |
| Sensitivity 3 = 14.4% | 9.65 | $5,577,850 | $800,000 | 6.97 |
| Sensitivity 4 = 19.4% | 13.00 | $7,514,603 | $800,000 | 9.39 |
| Discount rate used to convert future costs to present value | ||||
| Baseline = 4.11% | 6.33 | $3,657,846 | $800,000 | 4.57 |
| Sensitivity 5 = 0% | 6.33 | $7,083,972 | $800,000 | 8.85 |
| Sensitivity 6 = 3% | 6.33 | $4,289,637 | $800,000 | 5.36 |
| Sensitivity 7 = 5% | 6.33 | $3,249,461 | $800,000 | 4.06 |