Key Takeaways
- Despite robust occupational health and safety (OHS) legislation, workers’ compensation claims continue to rise, highlighting the need for a refreshed and more proactive approach.
- Psychometric assessments enable organisations to identify and develop employees with a safety-first mindset from the outset, reducing incidents and risks.
- When consistently embedded throughout the organisation, safety culture delivers measurable value, strengthens reputation and supports long-term resilience.
In industries where employees face significant physical risks — mining, construction, transport and logistics — safety has long been managed through compliance with occupational health and safety (OHS) laws. These frameworks in Australia are regarded as world-leading, with strong regulatory oversight and clearly defined employer obligations. Despite this, the number and cost of workers’ compensation claims is rising.
To comply with legislation, organisations in these sectors are required to have robust policies, protective equipment and incident management protocols in place. These measures are essential but largely reactive, limiting the negative impacts of an incident after it occurs. “Both the cost and time involved with claims continue to increase year on year which demonstrates that compliance alone is not enough to reduce the cost of workplace hazards and incidents,” says Ankita Patwardhan, Head of Assessment Solutions in Australia & Pacific for Aon. “This trend suggests that organisations need a different approach and this is where psychometric assessments can make a marked difference. As a solution for embedding safety into talent strategies, they are the cornerstone of a risk-aware culture that reduces incidents, strengthens reputation and creates long-term value for both organisations and their people.”
The Direct and Indirect Cost of Safety Incidents
When safety incidents occur, organisations face direct financial implications through claims, legal liability and insurance premiums. But indirect costs — including lost productivity, reduced morale, disengagement and reputational harm — can be even more damaging. “When a fatality or accident occurs, the negative impact on morale, reputation and productivity can be significant,” says Patwardhan. “The cost of not acting is far greater than the cost of prevention. Claims, reputational damage and lost productivity can all be mitigated by building a safety-first culture.”
A Data-Driven Approach to Reducing Workplace Risk
Research shows that two thirds of fatal workplace accidents in the mining industry resulted from skill-based errors[1]. While OHS protocols can reduce this important element of risk exposure, they cannot eliminate behavioural risks altogether. Measuring safety orientation and risk awareness within the workforce from the earliest stage — through recruitment, onboarding and development — can make a significant impact on the risk of human error.
Unlike traditional recruitment processes, which rely on interviews and reviewing prior experience, psychometric assessments offer objective insights into whether a candidate is likely to demonstrate a safety-first mindset. “With psychometrics, you can quantify behavioural preferences and relevant cognitive abilities before employees even join your organisation,” says Patwardhan. “It allows organisations to make data-driven decisions in the hiring process and connect them to risk and safety outcomes going forward.”
Assessment results and analysis can be applied at different stages of the employee lifecycle:
- Recruitment and selection: ensuring candidates for high-risk roles demonstrate safety orientation and the necessary cognitive aptitude.
- Onboarding and training: tailoring and monitoring development to strengthen risk awareness where gaps are identified.
- Leadership development: equipping managers to model and reinforce safety-first behaviours.
Case Study: Driver Safety in Transport and Logistics
Psychometric assessments such as Aon’s ADEPT-15 provide data points on behavioural competencies that are linked to safety performance. Traits measured by the tool — like impulse control, caution, discipline and ethical awareness — have been shown to predict safety orientation and reduce riskier behaviours by up to 2.46 times.
A transport and logistics sector organisation using this tool offers a clear example of the value of psychometric safety assessments. The organisation asked candidates to complete a suite of online assessments as part of the recruitment process for drivers. Relating the assessment data to performance in role. Drivers with high safety scores were found to have a 78% lower accident probability and 50% lower claims costs than those with lower scores. Acting on this data enables employers to select and support individuals who are less likely to engage in unsafe driving behaviours, helping reduce accidents, protect employees and minimise claims. Assessment results can also help identify targeted learning and development opportunities to ensure all drivers actively demonstrate safe behaviours.
Towards a Safety-First Culture
The benefits of psychometric assessment extend beyond screening. They are a catalyst for cultural change, helping organisations demonstrate to all stakeholders, from customers to investors, that safety is a core value rather than a compliance exercise. “Embedding risk and safety culture starts at the top,” says Patwardhan. “Leaders must model the behaviours they expect, influence their teams and demonstrate that safety is not just a checklist item but a strategic priority.”
By supplementing performance, engagement and incident data with psychometric insights , organisations can build a comprehensive picture of employee attitudes towards safety. This enables targeted interventions, ongoing measurement and, over time, reporting at board level and to external stakeholders. “Safety data should be more than a few lines in an annual report,” says Patwardhan. “Organisations can use it to demonstrate genuine improvement, accountability, and long-term value creation.”
Demonstrating Long-Term Value
A safety-first culture supports employee wellbeing, strengthens organisational reputation and future-proofs businesses against both immediate risks and long-term challenges. But one of the biggest challenges in culture change is proving that initiatives have a significant and lasting impact. Psychometric assessments provide objective insights on safety-first behaviours and form a critical part of workforce-wide strategies for measuring, monitoring and reinforcing safety-oriented decision-making. Over time, this solution supports an evidence-based culture of accountability and awareness, ensuring that safety remains an enduring organisational capability rather than a short-term initiative.
References
[1] Operator error and system deficiencies: analysis of 508 mining incidents and accidents from Queensland, Australia using HFACS, JM Patterson and SA Shappell, July 2010