| Literature DB >> 29495371 |
Grace E Vincent1, Irina Kinchin2,3, Sally A Ferguson4, Sarah M Jay5.
Abstract
On-call or stand-by is becoming an increasingly prevalent form of work scheduling. However, on-call arrangements are typically utilised when workloads are low, for example at night, which can result in inadequate sleep. It is a matter of concern that on-call work is associated with an increased risk of workplace injury. This study sought to determine the economic cost of injury due to inadequate sleep in Australian on-call workers. The prevalence of inadequate sleep among on-call workers was determined using an online survey, and economic costs were estimated using a previously validated costing methodology. Two-thirds of the sample (66%) reported obtaining inadequate sleep on weekdays (work days) and over 80% reported inadequate sleep while on-call. The resulting cost of injury is estimated at $2.25 billion per year ($1.71-2.73 billion). This equates to $1222 per person per incident involving a short-term absence from work; $2.53 million per incident classified as full incapacity, and $1.78 million for each fatality. To the best of our knowledge this is the first study to quantify the economic cost of workplace injury due to inadequate sleep in on-call workers. Well-rested employees are critical to safe and productive workplace operations. Therefore, it is in the interest of both employers and governments to prioritise and invest far more into the management of inadequate sleep in industries which utilise on-call work arrangements.Entities:
Keywords: cost; impact; sleep; stand-by; workplace
Mesh:
Year: 2018 PMID: 29495371 PMCID: PMC5876943 DOI: 10.3390/ijerph15030398
Source DB: PubMed Journal: Int J Environ Res Public Health ISSN: 1660-4601 Impact factor: 3.390
Figure 1Flowchart of work-related injuries among on-call workers classified by severity.
Economic cost borne by the employer, worker, and government.
| Conceptual Group | Cost Item | Employer | Worker | Government |
|---|---|---|---|---|
| Production disturbance costs | Value of lost production | Overtime premium and value of wages paid while away from work | Zero | Zero |
| Staff turnover costs | Staff turnover costs | Zero | Zero | |
| Human capital costs | Net present value of lost earnings | Zero | Zero | Loss of income and welfare payments transferred to worker for loss of wage minus deadweight loss associated with tax revenue forgone |
| Medical costs | Medical and rehabilitation costs | Threshold medical payments | Gap payments | Medical payments not covered by employer or worker |
| Admin. costs | Investigation costs | Employer investigation costs | Zero | Costs of running the compensation system (including investigation claims) |
| Travel costs | Zero | Out of pocket expenses | Compensation for travel costs | |
| Funeral costs | Zero | Out of pocket expenses | Zero | |
| Other | Carers | Zero | Zero | Payments to carers |
| Aids, equipment, and modifications | Zero | Zero | Reimbursements for aids, equipment, and modifications | |
| Postvention | Postvention | Zero | Postvention | |
| Transfer costs | Deadweight costs of tax revenue foregone | Zero | Zero | Deadweight costs of tax revenue foregone |
Source: Safe Work Australia, 2015 [24].
Summary of key assumptions.
| Incidents Indicator Data | Source | Value |
|---|---|---|
| Mean age of incident | Average age of on-call workers obtained from Survey Monkey | 42 |
| Average life expectancy at birth | Australian Bureau of Statistics (ABS) Deaths, Australia, 2014 [
| 82.4 |
| Potential years of life lost (YLL) | (Average life expectancy at birth [
| 40.4 |
| Potential productive years of life lost (PYLL) | (Average retirement age in Australia−Mean age of incident) | 24.0 |
| Average earnings | Proxy for productivity, ABS 6306.0 Employee Earnings and Hours survey, May 2016: Average weekly earnings as a weighted earnings for full time (69%) and part time (31%) employees | $1317 |
| Discount rate | Opportunity cost of money: Average of rates of return for private and government saving instruments and Reserve Bank of Australia (RBA) target for March 2005 to May 2016 [
| 4.41% |
| Inflation rate | Average of annual weighted ABS 6401.0 Consumer Price Index (CPI) from December 2004 to June 2016 [
| 2.58% |
| Productivity rate | Annual increase in workers’ productivity. Safe Work Australia report 2012–2013 [
| 1.75% |
| Average tax for foregone earnings | Australian Taxation Office [
| 25.00% |
| Transfer costs | Deadweight cost of welfare payments and tax losses. Safe Work Australia report 2012–2013 [
| 28.75% |
| Welfare for disability per year | Disability support pension $877.10 per fortnight [
| $22,805 |
| Carers—full incapacity cases only from incident to end of life | Estimated carer allowance of $118.20 per fortnight paid to someone who provides daily care and attention to someone in their own home adjusted to 2016 dollars using CPI correction factor [
| $2837 |
| Aids and modifications—full incapacity cases only from incident to end of life | Estimated applicable Disability Support Pension payments of $680 per annum, discounted to present value over the period between the incident and reduced life expectancy adjusted to 2016 dollars using CPI correction [
| $680 |
Self-reported sleep duration by Australian on-call workers.
| <5 h | 13 | 6 |
| 5 h–6 h | 50 | 24 |
| 6 h–7 h | 76 | 36 |
| 7 h–8 h | 55 | 26 |
| 8 h–9 h | 13 | 6 |
| >9 h | 4 | 2 |
| Total | 211 | 100 |
| <5 h | 32 | 15 |
| 5 h–6 h | 68 | 32 |
| 6 h–7 h | 68 | 32 |
| 7 h–8 h | 37 | 18 |
| 8 h–9 h | 6 | 3 |
| >9 h | 0 | 0 |
| Total | 211 | 100 |
Average cost of work-related injuries resulting in short absence, full incapacity, and fatality among on-call workers (in 2016 Australian dollars).
| Cost Category | Short Absence | Full Incapacity | Fatality |
|---|---|---|---|
| Production disturbance costs | $369 | $42,327 | $42,327 |
| Human capital costs | $0 | $2,248,987 | $1,573,132 |
| Medical costs | $820 | $12,515 | $2430 |
| Administrative costs | $33 | $2634 | $7030 |
| Other | $0 | $104,213 | $30,000 |
| Transfer costs | $0 | $121,825 | $121,825 |
| Average cost per person | $1222 | $2,532,502 | $1,776,744 |
Total cost of work-related injuries resulting in short absence, full incapacity, and fatality among on-call workers (in 2016 Australian dollars).
| Cost Category | Short Absence | Full Incapacity | Fatality | Overall |
|---|---|---|---|---|
| Production disturbance costs | $41,746,970 | $35,239,760 | $168,958 | $77,155,688 |
| Human capital costs | $0 | $1,872,395,143 | $6,279,439 | $1,878,674,582 |
| Medical costs | $92,833,395 | $10,419,368 | $9700 | $103,262,464 |
| Administrative costs | $3,735,978 | $2,192,938 | $28,062 | $5,956,977 |
| Other | $0 | $86,762,664 | $119,750 | $86,882,414 |
| Transfer costs | $0 | $101,425,480 | $486,287 | $101,911,766 |
| Total | $138,316,343 | $2,108,435,353 | $7,092,195 | $2,253,843,892 |
| Employer | $99,937,659 | $36,644,273 | $296,372 | $136,878,304 |
| Worker | $5,717,179 | $1,608,696 | $17,502 | $7,343,376 |
| Government | $32,661,506 | $2,070,182,385 | $6,778,322 | $2,109,622,212 |
Sensitivity analysis of key parameters (in 2016 Australian dollars).
| Parameter Varied | Cost of Inadequate Sleep |
|---|---|
| Proportion of on-call workers with inadequate sleep | |
| Sensitivity 1 = 50% | $1,707,457,494 |
| Baseline = 66% | $2,253,843,892 |
| Sensitivity 2 = 80% | $2,731,931,990 |
| Proportion of injuries resulting in short absence | |
| Sensitivity 3 = 6.5% | $1,953,331,373 |
| Baseline = 7.5% | $2,253,843,892 |
| Sensitivity 4 = 8.5% | $2,554,356,411 |
| Proportion of injuries resulting in full incapacity | |
| Sensitivity 5 = 0.6% | $1,878,550,243 |
| Baseline = 0.7% | $2,253,843,892 |
| Sensitivity 6 = 0.8% | $2,455,925,087 |
| Rate of injuries resulting in fatality per 1000 | |
| Sensitivity 7 = 0.02 | $2,250,806,470 |
| Baseline = 0.04 | $2,253,843,892 |
| Average age of injury | |
| Sensitivity 8 = 40 | $2,376,206,296 |
| Baseline = 42 | $2,253,843,892 |
| Average life expectancy at birth | |
| Sensitivity 9 = 71.6 | $2,128,392,304 |
| Sensitivity 10 = 77.0 | $2,188,533,859 |
| Baseline = 82.4 | $2,253,843,892 |
| Discount rate used to convert future costs to present value | |
| Sensitivity 11 = 3% | $2,716,424,664 |
| Baseline = 4.4% | $2,253,843,892 |
| Sensitivity 12 = 5% | $2,099,113,411 |
| Average earnings | |
| Sensitivity 13 = $1231 | $2,156,246,394 |
| Baseline = $1317 | $2,253,843,892 |
| Variable | Source | Value |
|---|---|---|
Population of on-call workers in Australia | 24% of Australia’s 9.6 million salaried workers complete on-call as part of their employment [
| 2,304,000 |
Proportion of on-call workers with inadequate sleep | 66%; survey of on call workers ( | 1,520,200 |
Proportion of on-call workers with work-related injuries | 7.5% workplace injuries due to inadequate sleep in Australia in 2016–2017 [
| 114,048 |
Resulting in short absence from work | [C-E-F] | 113,211 |
Resulting in full incapacity | Based on Deloitte Access Economics (2011) (e.g., in this study it was estimated that 0.73% of all motor vehicle accidents resulted in injury sufficient that the individual does not return to work) [
| 833 |
Resulting in fatality | 0.04 mortality rate per 1000 attributed to workplace injuries condition [
| 4 |