There’s no such thing as a perfect or risk-free work environment.
Regardless of the cause or reason, every workplace comes with a risk for the employer and its employees.
Sometimes, these threats can be traced to external factors, such as a volatile economy, regulatory changes, and market fluctuations.
More often, it’s human error.
Mistakes, negligence, inexperience, and misjudgment are all fundamental sources of risk in business operations and can lead to work inefficiencies, financial losses, and even reputational damage.
A more precise classification by the Occupational Safety and Health Administration (OSHA) recognizes six types of workplace risks, which can all be traced back to human error, accidents, or external factors:
- Chemical and dust hazards: cleaning products, pesticides, etc.
- Biological threats: infectious diseases, mold, pests
- Ergonomic hazards: repetition, lousy posture, heavy lifting
- Safety hazards: faulty equipment, trips, and falls
- Physical hazards: noise, temperature extremes, radiation
- Work organization risks: stress, sexual harassment, workload, violence, flexibility, and more
Failure to mitigate these examples can significantly harm the organization and its employees. The fact that each hazard differs shows that any industry, company, or work environment inherently brings a risk element.
Consequently, employers turn to risk mitigation strategies.
Outsourcing a PEO, for example, can help them set up policies in adherence to law regulations and procedures that address some or all of the risks mentioned above. Moreover, with their expertise, professional employer organizations can facilitate preventative programs to track and quickly address any issues, reducing the threats of accidents, injuries, and more.
This can help companies better prepare for any long-term effects on their prosperity and the well-being of their employees, creating a safe and productive environment.
No matter how good of a mitigation strategy employers follow, sometimes threats and their consequences can’t be avoided, which is when they should turn to risk management.