Economic impact of road accidents on costs of employee turnover: A quantitative study from Poland

Magdalena Kalbarczyk Kalbarczyk; Agata Małgorzata  Jaździk-Osmólska; Daniel  Trzaskowski; Robert Wojtachnik; Adrianna  Trzaskowska-Dmoch

doi:10.61089/aot2024.tvnay379

Authors

Magdalena Kalbarczyk Kalbarczyk Uniwersytet WSB Merito Warszawa Author https://orcid.org/0000-0002-8941-8432
Agata Małgorzata Jaździk-Osmólska Warsaw University of Technology Author https://orcid.org/0000-0001-6518-1269
Daniel Trzaskowski Warsaw University of Technology Author https://orcid.org/0009-0009-3947-3220
Robert Wojtachnik Warsaw University of Technology Author https://orcid.org/0000-0001-9739-5288
Adrianna Trzaskowska-Dmoch Warsaw University of Technology Author https://orcid.org/0000-0002-4825-3635

DOI:

https://doi.org/10.61089/aot2024.tvnay379

Keywords:

negative externalities in the transport, accidents externalities, costs of employee turnover, JEL: R41, R48, E24

Abstract

The article presents the results of the Polish research in 2014 and 2020 involving economic loss in enterprises due to employees' work disability due to road accidents. Road safety is one of the most essential global declines in social health, but marginal external road transport costs are not easy to measure. Typically, the aspect of risk in road safety in the operations of enterprises is viewed in the context of transport or logistic companies. However, the risk of becoming a road accident victim is not limited to fleet drivers. Better information about employee road accident costs needs to be provided in the literature. The Polish research shows that employees' work disability due to road accidents is extremely costly, often more than one would expect. A decrease in the risk of death in road safety in Poland in 2014-2019 did not reduce the costs to enterprises, which grew from PLN 1.1 million to PLN 1.6 million. Management of economic loss in enterprises due to road accidents is essential not only from the financial point of the organisation but also from the idea of corrective instruments to equate marginal social costs with marginal social benefits of transport The results of the conducted research bridge the research gap, vital from the point of view of community and corporate operations, regarding the volume of losses of enterprises due to employee turnover due to road accidents, which are likely to affect any. Further research should aim at specific conditions of minimizing employer losses discussed here, e.g. in the area of health policy improvement, which would allow a faster personal and professional recovery. The issue of the employer's employee social policy regarding creating suitable conditions for taking out life insurance is crucial. Ultimately, it is worth looking closer at employees' willingness to buy insurance coverage if the risk of a loss of life or health due to a road accident is real and substantial. Moreover, results show the critical direction for business – corporate social responsibility for road safety. It is warranted that further research should focus on recognizing and enhancing this role.

References

1. Allen, D. G. (2008) Retaining talent. A guide to analyzing and managing employee turnover, SHRM Foundation. Edited by SHRM Foundations. Alexandria, VA, USA. Available at: https://www.shrm.org/.

2. Assum, T. and Sørensen, M. (2010) ‘Safety Performance Indicator for alcohol in road accidents—International comparison, validity and data quality’, Accident Analysis & Prevention, 42(2), 595–603. https://doi.org/10.1016/j.aap.2009.10.005.

3. Bacon, J. (2007) Interim update of the ‘Costs to Britain of Workplace Accidents and Work-Related Ill Health’. Available at: https://www.hse.gov.uk/pubns/books/hsg101.htm. ISBN 9780717617098.

4. Belzer, M. H. and Kirby, W. (2012) The Economics of Safety: How Compensation Affects Commer-cial Motor Vehicle Driver Safety.

5. Bertera, R. L. (1990) ‘The effects of workplace health promotion on absenteeism and employment costs in a large industrial population’, American Journal of Public Health, 80(9), 1101–1105. https://doi: 10.2105/AJPH.80.9.1101.

6. Blincoe, L. et al. (2023) The Economic and Societal Impact of Motor Vehicle Crashes, 2019 (Re-vised). Available at: https://rosap.ntl.bts.gov.

7. Casado-Sanz, N., Guirao, B. and Gálvez-Pérez, D. (2019) ‘Population ageing and rural road acci-dents: Analysis of accident severity in traffic crashes with older pedestrians on Spanish crosstown roads’, Research in Transportation Business & Management. https://doi.org/10.1016/j.rtbm.2019.100377.

8. Cascio, W. F. (1992) Managing Human Resources. New York: Editura McGraw-Hill. ISBN 0071123113.

9. DeCenzo, D. and Robbins, S. (1994) Human Resources Management, Concepts and Practices. Illinois: John Wiley & Sons. ISBN: 978-0471576877

10. Chen, W. et al. (2019) ‘Drivers’ recognition of pedestrian road-crossing intentions: Performance and process’, Transportation Research Part F: Traffic Psychology and Behaviour. Elsevier Ltd, 64, 552–564. https://doi.org/10.1016/j.trf.2019.07.004.

11. Colvin, A. J. S. (2011) ‘An Employment Systems Approach To Turnover: Human Resources Practices, Quits, Dismissals’, Academy of Management Journal, 54(4), 695–717. https://doi.org/10.5465/amj.2011.64869448.

12. European Commission (2018) Annual Accident Report 2018. https://doi.org/10.1093/jnci/djj446.

13. Eurostat (2020). Available at: https://ec.europa.eu/eurostat/data/database (Accessed: 10 November 2020).

14. Firth, L. et al. (2004) ‘How can managers reduce employee intention to quit?’, Journal of Managerial Psychology, 19(2), 170–187. https://doi.org/10.1108/02683940410526127.

15. Fisher, C. D., Schoenfeldt, L. F. and Shaw, J. B. (1996) Human Resources Management. Princeton: NJ. ISBN 9780618527861.

16. ‘Friction Cost Method’ (2018) Encyclopedia of Public HealthHealth. Available at: https://www.taylorfrancis.com/books/9781317627791/chapters/10.4324/9781315755649-8.

17. Fridman, L. et al. (2019) ‘Driver and road characteristics associated with child pedestrian injuries’, Accident Analysis and Prevention. Elsevier, 131(July), 248–253. https://doi.org/10.1016/j.aap.2019.07.007.

18. Griffeth, R. W. and Hom, P. W. (2001) Retaining valued employees. Thousand Oaks, CA: Sage Publications. https://doi.org/10.4135/9781452231242.

19. Gurzhii, T. et al. (2021) ‘Calculating consequences of road accidents for public administering and strategic management of road transport’, Journal of Administrative Sciences and Technology, 2021(September). https://doi.org/10.5171/2021.644540.

20. GUS (2017) Rocznik statystyczny pracy, GUS. Warszawa.

21. Hall, T. E. (1981) ‘How to estimate employee turnover costs’, Personnel, 58(4), 58 (4), 43–52. PMID: 10252501.

22. Hasanli, S. I. (2022) From Dutch disease to Azerbaijan’s Cure, University of Finance and Admini-stration. Available at: https://is.vsfs.cz/th/f487s/Master_s_Thesis_Shahin_Hasanli_From

_Dutch_Disease_to_Azerbaijan_s_Cure.pdf.

23. Hom, P. W. and Kinicki, A. J. (2001) ‘Toward a Greater Understanding of How Dissatisfaction Drives Employee Turnover’, Academy of Management Journal, 44(5), 975–987. https://doi.org/10.2307/3069441.

24. Hom, P. W., Griffeth, R. (1995) Employee turnover, South Western college publishing. Cincinnati. ISBN 053880873X.

25. HRownia (2017) Koszty rotacji pracowników – jak je szacować oraz obniżać w sposób systemowy? Available at: https://hrownia.pl/artykuly/koszty-rotacji-pracownikow-jak-je-szacowac-oraz-obniżac-w-sposób-systemowy.

26. Huang, Y. H. et al. (2016) ‘Beyond safety outcomes: An investigation of the impact of safety cli-mate on job satisfaction, employee engagement and turnover using social exchange theory as the theoretical framework’, Applied Ergonomics. Elsevier Ltd, 55, 248–257. https://doi.org/10.1016/j.apergo.2015.10.007.

27. IHME (2015) Rethinking Development and Health. Seatle: Institute for Health Metrics and Evaluation, University of Washington. Available at: http://www.healthdata.org/sites/default/files/files/images/news_release/2016/IHME_GBD2015.pdf.

28. Insurance for Small Businesses: a guide to protecting your business (2008). Association of British Insurers.

29. ITF (2023) ‘Road Safety Annual Report 2023’. Paris: OECD Publishing. Available at: https://www.itf-oecd.org/road-safety-annual-report-2023.

30. Jasińska, A. (2018) ‘Rotation related problems of personnel services in outsourcing companies’, Production engineering archive, 20, 20–25. https://doi.org/10.30657/pea.2018.20.05.

31. Jaździk-Osmólska, A. (2014) Wycena kosztów wypadków i kolizji drogowych na sieci dróg w Polsce na koniec roku 2013, z wyodrębnieniem średnich kosztów społeczno-ekonomicznych wypadków na transeuropejskiej sieci transportowej. Warszawa. Available at: https://www.krbrd.gov.pl/baza-wiedzy/badania-kosztow-zdarzen-drogowych/.

32. Jaździk-Osmólska, A. (2015) ‘Pandora - Valuation method of social costs of road accidents in Poland’, Roads and Bridges - Drogi i Mosty, 14(2). https://doi.org/10.7409/rabdim.015.009.

33. Jaździk-Osmólska, A. (2019) Wycena kosztów wypadków i kolizji drogowych na sieci dróg w Polsce na koniec roku 2018, z wyodrębnieniem średnich kosztów społeczno-ekonomicznych wypadków na transeuropejskiej sieci transportowej. Warszawa. Available at: https://www.krbrd.gov.pl/baza-wiedzy/badania-kosztow-zdarzen-drogowych/.

34. Jaździk-Osmólska, A. (2020) Szacowanie społecznych kosztów wypadków drogowych. Perspektywa jakości życia i zarządzania bezpieczeństwem uczestników ruchu drogowego. Siedlce: Uniwersytet Przyrodniczo-Humanistyczny w Siedlcach. ISBN 9788366541191.

35. Jing Xu et al. (2018) ‘Comparison of pedestrian behaviors between drivers and non-drivers in Chinese sample’, Transportation Research Part F: Traffic Psychology and Behaviour, 58, 1053–1060. https://doi.org/10.1016/j.trf.2018.05.034.

36. Kilhoffer, Z. (2021) STATE-OF-THE-ART Data on the platform economy. Available at: http://www.inclusivegrowth.eu.

37. Lawler, E. (2000) Rewarding Excellence. Pay Strategies for the New Economy. San Francisco: Jossey-Bass Publishers. https://doi.org/10.2307/30948.

38. Liraz, F. et al. (2019) ‘Driver and road characteristics associated with child pedestrian injuries’, Accident Analysis & Prevention, 131, 248–253. https://doi.org/10.1016/j.aap.2019.07.007.

39. Maertz, C. P., & Campion, M. A. 1998. “25 Years of Voluntary Turnover Research: A Review and Critique.”In International Review of Industrial and Organizational Psychology, edited by C.L. Cooper and I. T Robertson, 49–83. Chichester. ISBN 0-471-49557-3.

40. Mano-Negrin, R. and Shay, S. T. (2004) ‘Job search modes and Turnover’, Career development international, 5, 442–446. https://doi.org/10.1108/13620430410550727.

41. Marstone, C. (2008) Motivating the „What In it for me?" Workforce: Manage Across the Generational Divide and Increase Profits. Hardcover.

42. mBurse (2023) Employee Auto Insurance: A Risk Management Guide, mBurse. Available at: https://www.mburse.com/blog/what-is-your-risk-profile-when-your-employees-hit-the-road?

43. Miller, T. R. and McKnight, A. S. (2021) Cost of Motor Vehicle Crashes to Employers 2019, Network of Employers for Traffic Safety. Available at: https://trafficsafety.org/road-safety-resources/public-resources/cost-of-motor-vehicle-crashes-to-employers-2019/.

44. Nævestad, T.-O. et al. (2019) ‘Safety culture among bus drivers in Norway and Greece’, Transportation Research Part F: Traffic Psychology and Behaviour, 64, 323–341. https://doi.org/10.1016/j.trf.2019.05.006.

45. Nævestad, T.-O., Hesjevoll, S. I. and Ross, O. P. (2018) ‘How can we improve safety culture in transport organizations? A review of interventions, effects and influencing factors’, Transportation Research Part F: Traffic Psychology and Behaviou, 54, 28–46. https://doi.org/10.1016/j.trf.2018.01.002.

46. NETS NHTSA OSHA (2006) Guidelines for employers to reduce motor vehicle crashes. Available at: https://www.osha.gov/sites/default/files/publications/motor_vehicle_guide.pdf?

47. OECD (1998) Human Capital Investment: An international comparison. Paris: OECD Publishing. https://doi.org/10.1787/9789264162891-en.

48. OECD / ITF (2019) Road Safety Annual Report. Available at: https://www.itf-oecd.org/sites/default/files/docs/irtad-road-safety-annual-report-2019.pdf.

49. Ongori, H. (2007) ‘A brief review of the literature on the employee turnover’, African Journal of Business Management, 049–054. https://doi.org/10.5897/AJBM.9000027.

50. Rainey, D., Parenteau, M. A. and Kales, S. N. (2019) ‘Sleep and Transportation Safety: Role of the Employer Sleep’, Medicine Clinics. https://doi.org/10.1016/j.jsmc.2019.08.007.

51. Santos, G. et al. (2010) ‘Part I: Externalities and economic policies in road transport’, Research in Transportation Economics. Elsevier Ltd, 28(1), 2–45. https://doi.org/10.1016/j.retrec.2009.11.002.

52. Riepina, I. et al. (2022) ‘Identification of Factors Related To Transport Entrepreneurship Influenc-ing the Economic Development of Ukraine’, Transport Problems, 17(4), 151–163. https://doi.org/10.20858/TP.2022.17.4.13.

53. Sas, A. (2020) Employee turnover and salary increases in the BPO/SSC/IT/R&D sector in Poland in 2020. Available at: https://www.statista.com/statistics/1138988/poland-employee-turnover-and-salary-increases-in-business-service-centers/ (Accessed: 14 November 2020).

54. Scott, K. M., Lim, C., Al-Hamzawi, A., Alonso, J., Bruffaerts, R., Caldas-de-Almeida, J. M., Florescu, S., de Girolamo, G., Hu, C., de Jonge, P., Kawakami, N., Medina-Mora, M. E., Moskalewicz, J., Navarro-Mateu, F., O'Neill, S., Piazza, M., Posada-Villa, J., Torres, Y., & Kessler, R. C. (2016). Association of mental disorders with subsequent chronic physical conditions: World Mental Health Surveys from 17 countries. JAMA Psychiatry, 73(2), 150–158. https://doi.org/10.1001/jamapsychiatry.2015.2688.

55. WHO (2004) Road safety is no accident. Geneva. Available at: www.who.int/world/health/day%0A1.

56. Work related traumatic injury fatalities, Australia 2009-201 (2012). Safe Work Australia. Available at: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://safeworkaus

tralia.gov.au/system/files/documents/1702/traumatic-injury-fatalities-2012.docx&ved=2ahUKEwjgveLem6OKAxV5HxAIHci8E5gQFnoECBwQAQ&usg=AOvVaw24JK9pExuumzEmV5lODovZ. ISBN 978-1-74361-185-2.

57. World Health Organization (2015) ‘Global Status Report on Road Safety 2015’, WHO Library Cataloguing-in-Publication Data Global, p. 340. httpps://doi.org/10.1136/injuryprev-2013-040775.

58. Wright, T. A. and Bonett, D. G. (1993) ‘Role of Employee Coping and Performance in Voluntary Employee Withdrawal: A Research Refinement and Elaboration’, Journal of Management, 19(1), 147–161. https://doi.org/10.1016/0149-2063(93)90050-W.

59. Voordt, T. van der and Jensen, P. A. (2023) ‘The impact of healthy workplaces on employee satis-faction, productivity and costs’, Journal of Corporate Real Estate, 25(1), 29–49. https://doi.org/10.1108/JCRE-03-2021-0012.

60. Zatzick, D., Jurkovich, G. J., Rivara, F. P., Wang, J., Fan, M.-Y., Joesch, J., & Mackenzie, E. (2008). A national US study of posttraumatic stress disorder, depression, and work and functional outcomes after hospitalization for traumatic injury. Annals of Surgery, 248(3), 429–437. https://doi.org/10.1097/SLA.0b013e318185a6b8.

61. Zatzick, D. F., Rivara, F. P., Nathens, A. B., Jurkovich, G. J., Wang, J., Fan, M.-Y., Russo, J., Salkever, D. S., & Mackenzie, E. J. (2007). A nationwide US study of post-traumatic stress after hospitalization for physical injury. Psychological Medicine, 37(10), 1469–1480. https://doi.org/10.1017/S0033291707000943.