Do you know about the hidden impact of oil price increases on workplace safety?

Increases in oil prices in a Post-Covid Environment: The cumulative impact on workplace safety

It seems we all know the direct effects of the price of petroleum going up. It hits us every time we fill up at the pump. But what do we know about the hidden impact of these oil price increases on workplace safety? What does it mean for the composition of associated industries’ workforces, the competence of their workforces, and what increased risks may be associated with an oil price surge in our current post-covid environment?

Increased petroleum prices push the business imperative to increase production of oil to cash in on the rising economic return. This starts a cascade of events through the oil and associated industries that will increase risks in those workplaces. This is related to the rapid employment of inexperienced workers as well as the premature promotion of less experienced workers to meet the increased demand for labour.

Research has shown that there are increased risks to workplace safety when inexperienced workers are employed. This is the case whether they be young apprentices just commencing in the workforce, older workers starting out in a new work environment, or those returning to a field of work that they were familiar with once-upon-a-time – but have not worked in for several years. The risk to workplace safety, brought about inadvertently by inexperience or lack of current experience, may be on the rise along with a rise in fuel prices. Other safety factors such as miscommunication, altered workforce dynamics in the altered post-Covid workforce, and rushing to get bodies into positions without adequate training are also discussed to help us understand how our safety systems can be inadvertently challenged by the perfect storm we have before us now.

A hiring frenzy in one industry often causes employers to have to look outside their own industry to recruit adequate numbers of workers to meet their contracted production needs. Experience levels that employers would prefer to have in their new employees may not be met, so they will hire less experienced workers - or those with no prior experience in that industry - to meet production goals. The risks associated with these lower experienced personnel in a workforce is further exacerbated by the promotion of existing personnel to Supervisor or Management positions that they may not be adequately prepared to take on. Being promoted as the ‘next most experienced person,’ does not necessarily mean the promoted person is competent in that position, nor that they had sufficient experience and training for their new role. Inexperienced Managers and Supervisors directing inexperienced employees compounds the likelihood of incidents in any workplace. Production tends to override safety at these times, with inexperienced workers being seen as better than no workers.

As the old saying goes, “Beggars can’t be choosers.” According to the Merriam Webster Dictionary, the definition of this term is used to denote that “people who need something should be satisfied with what they get even if it is not exactly what they wanted!” Increased manpower is needed to meet production so that the companies can meet shareholders expectations. This is often regardless of the risks involved with the hiring of substantial numbers of inexperienced personnel.

By definition, inexperienced workers are not familiar with the work environment, so they may not know the “common sense” aspects of that industry which are known to experienced personnel - and are taken for granted. The only thing common about common sense is that we learn it as we go through life. It is based on experience – both from personal and vicarious learning. Doesn’t everyone know that? The new worker walking in the door may not know that.

As these newly hired personnel start flooding into an organisation, they may not be aware of the inherent risks associated with that particular industry. They may not understand the lingo and jargon used but may be too afraid to ask as they will “look stupid” and feel they must prove themselves worthy. Certain industries are more prone to this need to act tough, know everything, and not ask dumb questions. Miscommunication, including no communication, is often an underestimated hazard when it comes to workplace safety.

When people within the one workgroup are not speaking the same language, or do not have the same background knowledge and perceptions, the chance of miscommunication increases significantly. Suffice to say, workplace communication is hampered by basic human factors which are characteristic of inexperienced workers. Yet another compounding factor that can impact workplace safety in this post-Covid era.

A further factor that impacts safety related to workplace inexperience is in the training provisions for newly hired personnel and subcontractors. Due to the need to get people out and working, training may not be adequate or not be provided at all. In the aftermath of Covid, where recurrent training has been negatively impacted, many skills may be a little rusty. The managing of these changes in the workforce competence and composition (meeting added training needs of numerous inexperienced and returning workers) may not be high on the agenda of inexperienced Supervisors and Managers, further increasing the risk to safety.

Within many industries - such as aviation, mining, and oil and gas exploration - ramping up production again in the post-Covid environment will mean the convergence of many safety aspects; inexperience in new employees, lack of current experience in returning employees, and the possible lack of ongoing plant and equipment maintenance over the pandemic period, of which all have a cumulative effect on workplace safety.

Have you thought of how YOU will deal with these changes to the workforce to ensure a safe work environment? Workplace health and safety is everyone’s responsibility!

Find out more by visiting www.icamaustralia.com.au

Author: Majella McDonald, Senior Incident Investigator, ICAM Australia