Let us explain. A recent study of more than 17,000 workplace deaths found that small, single-site businesses were among the least dangerous places to work. The research simultaneously found that small worksites operated by companies with 20-999 employees that oversee multiple sites have up to 5x the fatality rates of those of equal size operated by small or large companies.

The U.S. Dept. of Labor’s most recent Census of Fatal Occupational Injuries (CFOI) data point to a 2004 fatality count of 5,764.

The workplace and its dangers have changed dramatically over the years, even though many employees still work in comparatively risky environments. Construction, manufacturing, transportation and agriculture remain dangerous industries of occupation, but does size of the workplace factor into it?

According to new data, size does matter — though perhaps not how you’d expect.

A recent study examining more than 17,000 workplace deaths found that small, single-site businesses were among the least dangerous places to work.

The study, conducted by the Kauffman-RAND Center for the Study of Small Business and Regulation, a non-profit research group based in Santa Monica, Calif., had researchers identify trends in fatal workplace accidents by analyzing 17,000+ workplace deaths investigated by the federal Occupational Safety and Health Administration (OSHA) (excluding deaths from assaults and highway crashes). They identified trends involving both the size of the individual worksite — the number of workers at a single location — and the overall number of workers a business employs at multiple locations.

RAND’s findings partially run counter to the popular view that small workplaces are generally more hazardous than larger ones, according to researchers.

The research indicates that small, single-establishment firms are among the safer workplaces. The reasons for this “protective effect” are unclear, although one explanation for the improvement in safety may be that small-business owners are more likely to share the workplace with their employees.

“It seems plausible that an on-site owner might feel more responsible to try to avoid injuring workers than a hired manager would,” John Mendeloff, a professor of public policy at the University of Pittsburg, said in a statement.

This recent finding appears to be good news, as businesses with fewer than 100 employees play a vital role in the U.S. economy, employing more than half of all Americans.

However, the study also shows that, within a given firm, smaller establishments are riskier than larger establishments; the worst fatality rates are found at small establishments that were part of midsize firms with 20–999 workers. Fatality rates for small establishments in these firm-size categories were found to be significantly higher than rates for establishments in the smallest and largest firm-size categories. In fact, small worksites with fewer than 20 employees operated by mid-sized companies — companies with 20 to 999 employees that oversee multiple sites — were found to have up to five times the fatality rates of those of equal size operated by small or large companies, the study reported.

For example, among manufacturing businesses with 1,000 or more employees, the fatality rate at worksites with fewer than 20 workers was 3 times higher than worksites with 20-49 workers and 8 times higher than worksites with 1,000 or more workers.

Such patterns emerged across several industries, including manufacturing, transportation, public utilities, wholesale and services.

If fatality rates for small establishments in these firms were to be reduced to those found for small establishments in the smallest or largest firms, more than two-thirds of these deaths would be prevented.

According to RAND, the results could justify easing costly regulatory measures for small businesses, which are currently forced to meet many of the same requirements as much larger companies. Some policymakers have argued that the burden of health, safety and environmental regulations falls too heavily on small businesses, “which have less ability to keep up with regulatory requirements and cannot take advantage of economies of scale to meet safety standards,” the research firm said in a statement. The relatively good record at small, single-establishment firms may justify lighter regulatory interventions there than at small and medium-sized firms with multiple establishments.

In fact, one similarity across all establishment-size categories, the study found, is that most fatalities were related to serious OSHA violations (i.e., those that OSHA believes pose a substantial threat of causing death or serious injury).

The RAND report provides an important possible exception to research that workers in small workplaces are at greater risk of fatal accidents than those in larger workplaces.

Something to consider before expanding your business…

Resources

Small Businesses and Workplace Fatality Risk: An Exploratory Analysis
Are Small Businesses Riskier Than Larger Ones?
by John Mendeloff, Christopher Nelson, Kilkon Ko, Amelia Haviland
Kauffman-RAND Center for the Study of Small Business and Regulation, May 5, 2006

RAND Study Finds That Small, Single-Location Workplaces Are Among the Safest Places to Work
Kauffman-RAND Center for the Study of Small Business and Regulation, May 5, 2006

Study: Smaller Workplaces Are Safer
by Angus Loten
Inc.com, May 5, 2006