How business leaders have responded to the Health and Safety at Work Act
Posted 27 June 2018 under News releases
The Health and Safety at Work Act 2015 has had an overall positive impact on attitudes and practices in Kiwi workplaces, according to the third annual Health and Safety Leadership Survey released today by Deloitte and the Business Leaders' Health & Safety Forum.
Half of the 138 directors, chief executives, senior executives and health and safety executives surveyed, from across a range of industries in the public and private sector, agree their organisations are now safer compared with two years ago. However, the survey results also suggest areas where more can be done to address crucial blind spots.
The survey questions mirrored focus key areas in the Act - leadership and governance, risk management, health and safety in the supply chain and worker involvement in health and safety.
The results suggest that the law - which came into force just over two years ago - has helped put, and keep, health and safety on the boardroom agenda.
In some organisations, there is now more contested debate among directors about health and safety versus other business objectives.
However, while half of boards take a proactive approach to health and safety, about a third appear to wait for management to raise issues. This leaves directors vulnerable under the Act's due diligence requirements.
In addition, the vast majority of boards also appear to rely heavily on management reports to assess performance and fewer than half of those surveyed seek assurance from external reviews or internal audits.
This could be a source of vulnerability and suggests some boards don't see a distinction between reporting and assurance.
For nine out of ten survey respondents there has been a significant increase in the focus on controlling risks. And more than two-thirds report devoting at least half their time and resources on controlling risks, rather than just identifying them.
This shift is to be encouraged because actively controlling risks is what ultimately keeps people from being harmed at work.
However, less than a third of respondents reported being extremely confident that every member of their board could name all their critical risks. And health and safety executives are much less confident than the CEOs and directors surveyed, which suggests another potential blind spot.
Almost 70% of respondents say that the new environment has had an impact on procurement, with two-thirds now using pre-qualification schemes in their supply chains. But nearly one in six report having to comply with more than five of these schemes, increasing their compliance costs.
The majority of respondents believe workers and managers understand why active engagement in health and safety initiatives is important. However, only 13% of health and safety committees are coordinated or initiated by workers. And the results also suggest the confidence about worker engagement among CEOs and directors is not matched by those working at the "coalface" of health and safety.
The fact that CEOs and directors are generally more confident than health and safety executives raises questions about whether their high levels of confidence is justified.
But the purpose of this survey is not to judge or draw conclusions about how well CEOs and directors are leading health and safety performance. Rather, we hope it will spark conversations in boardrooms, executive suites and between business and government - conversations focused on whether we are seeing signs that the intent of the Act is being translated into the right actions and practices to ensure safer workplaces.
The full survey report can be viewed or downloaded from deloitte.com/nz/health-and-safety.
About the Health & Safety Leadership Survey
The third annual Health and Safety Leadership Survey was completed by 138 business leaders in April 2018. 85% are from the private sector and 15% are from the public sector. A third of the respondents employ more than 500 people and 41% report annual revenue of over $100 million. 51% have unions representing their employees.