Traditional HSE – an administrative approach

For many years, the traditional approach to managing health, safety and environmental protection was primarily based on meeting regulatory requirements, which essentially establish minimum standards. In practice, this meant preparing risk assessment documents, policies and procedures, maintaining mandatory records, addressing inspection findings and fulfilling other regulatory obligations. Such systems were focused on demonstrating compliance, i.e. the organization’s ability to show that the required documentation was in place and that formally prescribed activities had been completed. As a result, the HSE function in many organizations was viewed primarily as an administrative and control function.

The problem arises when documentation becomes an objective in itself. The existence of a procedure does not necessarily mean that employees understand it, apply it or that it reflects actual working conditions. An organization may have well-maintained records, numerous completed training sessions and formally closed corrective actions, while serious risks remain present in the field without being properly identified or addressed. Modern HSE therefore does not reject administration and documentation; instead, it treats them as support for genuine risk management. A document should be evidence and a control tool- not a substitute for actual safety.

Why an administrative approach is not enough

One of the key shortcomings of a predominantly administrative HSE system is the assumption that work will be performed exactly as described in procedures. In real working conditions, there are often time pressures, limited resources, changes in work organization, equipment failures, workarounds and situations that were not anticipated in advance. This creates a gap between how work is designed and described in documentation and how it is actually performed. Understanding the real way work is carried out and the actual needs of workers therefore becomes one of the fundamental tasks of a modern HSE system.

An administrative approach also often reacts only after an unwanted event has already occurred. Following an injury or incident, an investigation is conducted, a procedure is revised, additional training is organized, or a new checklist is introduced. Although such activities are necessary, they represent a reactive approach. A modern HSE system seeks to identify weaknesses before an incident occurs. The focus therefore shifts from asking, “Do we have the document?” to questions such as, “Do we understand the risk?”, “Are the controls effective?” and “How do we know that the system will function when unplanned circumstances arise?”

Moving to a risk-based HSE system

A risk-based approach starts from the premise that an organization can never eliminate all hazards, but it can systematically identify, assess and control risks. The focus of the HSE system therefore shifts from fulfilling individual administrative requirements to understanding scenarios that could result in injuries, events with serious consequences for people and property, environmental pollution or business interruption.

The key questions become:

• What could happen?
• How likely is it to happen?
• What could the consequences be?
• Which controls prevent or mitigate the event?

Different methodologies can be used for this type of management, depending on the complexity of the process and the nature of the risk. Simpler activities can be analyzed through risk assessments, JSA/JHA analyses and checklists, while complex industrial processes may require HAZOP, Bow-Tie, FMEA or other structured methods. The hierarchy of controls is particularly important. It prioritizes the elimination of hazards, substitution of hazardous processes or materials, engineering controls and technical safeguards, while administrative measures and personal protective equipment are considered lower levels of protection. This shifts responsibility for safety from individual behavior toward the quality of the system itself.

From monitoring injuries to monitoring risk controls

Traditional HSE systems often measure performance using indicators that describe events that have already occurred. These may include the number of occupational injuries, lost workdays, environmental incidents or employee injury rates. Known as lagging indicators, these measures are important because they allow organizations to track historical performance and compare results over time. However, their main limitation is that they provide a view of the past. A low number of injuries does not automatically mean that a system is safe because an organization may still have serious uncontrolled risks that have not yet resulted in an incident.

For this reason, modern HSE increasingly relies on leading indicators – measures that provide insight into the status of preventive activities and protective controls. These may include the percentage of completed inspections, the number of identified near-miss events, the condition of safety-critical equipment, the time required to close corrective actions, the quality of risk assessments or the percentage of verified critical controls. The key change is that the organization does not wait for a negative event to obtain information about its safety performance. Instead, it continuously monitors signals that may indicate a weakening of the system. HSE thus becomes a tool for preventive management rather than merely a system for recording consequences.

Critical risks instead of treating all risks equally

Not all risks within an organization are equally significant. A minor cut and a fall from a significant height may appear in the same incident database, but their potential consequences are not comparable. Modern HSE systems therefore focus particular attention on risks that can result in serious consequences, including activities that may lead to severe injuries, major fires, explosions, exposure to hazardous substances or significant environmental impacts. Depending on the industry, these may include high-risk activities associated with the working environment, processes, equipment or long-term consequences arising from the work itself.

For every critical risk, key controls should be defined and verified to ensure they are present and functional enough to prevent a serious event. For example, when working at height, it is not enough to have a procedure and proof that an employee has received training. It is also necessary to verify the condition of fall-protection equipment, connection methods, anchor points, opening protection, rescue arrangements and the competence of the people performing the work. A modern system therefore does not ask only whether a control exists, but whether it is actually present, effective and reliable when needed. Managing critical controls is one of the most important differences between a formal HSE system and a genuinely effective one.

Management’s role – HSE is no longer the responsibility of the HSE department alone

In the traditional model, the HSE department was often viewed as the primary owner of safety responsibilities. HSE professionals were expected to inspect workplaces, identify non-conformities, develop procedures, conduct training and request corrective actions. This approach can easily create the misconception that production, maintenance, logistics and other departments are responsible for business results, while the HSE department is responsible for safety.

However, the people who manage processes, resources, deadlines and equipment are also making decisions that determine the level of risk.

The modern approach therefore emphasizes that managing HSE risks is primarily the responsibility of operational management. The HSE function acts as a technical advisor, analyst, facilitator and independent assurance mechanism, but it cannot manage every organizational risk on its own. Managers must understand the key risks within their areas, know which controls are critical and regularly verify their effectiveness. This integrates HSE into day-to-day management, production planning, maintenance, investment decisions and work organization rather than treating it as a parallel system managed only by a specialized department.

Safety culture and the human factor

When an incident occurs, the simplest explanation is often that an employee was careless, failed to follow a procedure or made a mistake. However, this is rarely the full explanation. Human behavior is influenced by the quality of work instructions, equipment design, workload, fatigue, deadline pressure, resource availability, communication, supervision, experience and organizational culture. If a particular rule is difficult to apply or significantly slows down the work, employees may gradually develop an alternative way of working that the organization eventually begins to accept informally.

Modern HSE therefore increasingly examines human and organizational factors instead of automatically treating individual error as the root cause. Learning from events and encouraging open reporting are intended to enable employees to raise concerns without fear that every mistake will automatically result in punishment. This does not mean eliminating accountability; it means distinguishing between an unintentional error, at-risk behavior and a deliberate violation of rules. An organization with a mature safety culture uses information from the field as a source for improving the system, not merely as a basis for assigning responsibility.

Digitalization of HSE systems

Digital technologies are significantly changing the way organizations manage HSE processes. Paper checklists can be replaced by mobile applications and platforms, corrective actions can be tracked in real time, and sensor data can provide information on hazardous-substance concentrations, temperature, vibration, employee location or equipment condition. Advanced software can also use predictive analytics to identify changes in behavior within a team or among individual employees. Digital dashboards allow management to quickly understand trends, open actions, critical risks and the status of preventive activities. This enables HSE professionals to shift their time away from administrative data entry toward analysis and risk management.

However, digitalization alone does not make an HSE system more effective. If a complicated paper form is simply transferred from paper to a smartphone, the essence of the process remains unchanged. Modern digitalization should simplify work, improve information quality and enable earlier risk identification. Advanced analytics and artificial intelligence also create opportunities to connect large volumes of data and identify patterns that may not be easily visible to humans. However, the quality of digital analysis always depends on the quality of the underlying data and how the organization uses that information when making decisions.

Integrating HSE with business management

HSE risks are not only a matter of employee safety or regulatory compliance. They can have direct business consequences. A serious incident can cause production downtime, property damage, loss of customers or even entire markets, regulatory penalties, legal proceedings, increased insurance costs and long-term reputational damage. An environmental incident can have consequences that last for years and require significant financial resources for recovery. HSE risk management should therefore be viewed as an integral part of the broader business risk management system.

Integration means considering HSE when making investment decisions, purchasing equipment, designing new processes, selecting contractors, planning maintenance and setting production targets. For example, a decision to postpone equipment maintenance is not solely a maintenance or financial decision if it simultaneously increases the likelihood of a serious incident. A modern HSE system enables management to understand these connections and make decisions based on the organization’s overall risk profile. In this way, HSE ceases to be an isolated specialist area and becomes part of the company’s strategic and operational management.

What a mature HSE system looks like

A mature HSE system cannot be recognized simply by the number of procedures, certifications or injury-free days. Its defining characteristic is the organization’s ability to understand and manage its own risks. Management knows which events have the potential for the most severe consequences, which controls prevent them and what the current condition of those controls is. Employees understand the risks associated with their work, have the ability to stop unsafe work and can report problems, while incidents and near misses are used as opportunities for learning. Procedures exist, but they are practical, understandable and connected to the way work is actually performed.

The highest level of maturity is achieved when an organization does not simply react to incidents but actively looks for weak signals that may indicate a future problem. These may include recurring minor deviations, temporary solutions that become permanent, maintenance delays, increasing overtime, declining inspection quality or repeated similar near-miss events. In such a system, HSE is not assuming that the absence of incidents means the absence of risk. Instead, the organization continuously tests how resilient its system is to errors, changes and unexpected events.

Conclusion

The transformation of modern HSE systems can be described as a shift from asking, “Have we met the requirement?” to asking, “Is the risk actually under control?”. Administration, procedures, records and regulatory compliance remain important elements of the system, but they are no longer sufficient to assess its effectiveness. The true value of an HSE system lies in its ability to identify critical risks, establish reliable controls, monitor their effectiveness and recognize weak signals before they develop into serious incidents.

Modern HSE is therefore more than a function responsible for occupational safety and environmental protection. It is becoming an integral part of organizational management. Companies with mature HSE systems do not simply seek to comply with rules; they seek to understand how their systems operate under real conditions, how people make decisions and where future risks may emerge. The fundamental shift is therefore from managing documentation to managing risk, from reacting to consequences of preventing them, and from seeing HSE as the responsibility of one department to recognizing it as a shared responsibility across the entire organization.

Without Their Competence, Safety Remains Just a Procedure

An employee may know exactly how to perform a task safely. They may understand the prescribed safety measures, use personal protective equipment (PPE) correctly, and be aware of the risks associated with their workplace.

But if a manager simultaneously insists on speed, tolerates shortcuts, delays the correction of deficiencies, or approves work to begin without the necessary conditions in place, the effect of the employee’s training can disappear within the very first shift.

That is why occupational safety and health cannot be the sole responsibility of an OSH advisor or associate, nor can it be treated as a topic intended only for operational employees. OSH is part of management, and managers are the people whose day-to-day decisions determine how the system actually functions.

In the simplest terms:

Employees apply occupational safety and health measures, but managers create the conditions in which those measures can — or cannot — be implemented.

Is Manager Training Just a Legal Requirement?

The applicable Occupational Safety and Health Law of the Republic of Serbia (“Official Gazette of the Republic of Serbia”, No. 35/2023), in Article 50, specifically identifies participation in the development of training programmes for managers, as well as the organisation and delivery of their training, among the duties of OSH advisors and associates.

Managers are therefore clearly recognised as a specific target group whose role differs from that of other employees.

However, reducing manager training to a matter of formal legal compliance would mean missing an important opportunity.

A well-designed training programme enables managers to:

• understand their authority, duties and responsibilities;
• identify risks before an activity begins;
• make decisions that do not place production and safety in conflict;
• respond appropriately to reported hazards or deviations;
• manage contractors and high-risk activities;
• analyse the causes of events instead of looking only for an immediate person to blame;
• turn OSH requirements into a daily way of organising work.

Legal compliance is therefore the starting point. The real objective is a manager who knows how to manage risk.

Who Actually Manages Risk During the Working Day?

An OSH advisor or associate assesses risks, proposes measures, monitors their implementation and provides professional support. However, they generally do not assign employees, set production deadlines, approve contractor activities or directly determine the priorities of every shift.

Managers do.

A manager decides:

• who will perform a particular task;
• whether an employee has the necessary knowledge and competence;
• whether additional instructions or supervision are required;
• whether equipment and the workplace are safe;
• whether work must be stopped when an unacceptable risk arises;
• how a reported hazard will be addressed;
• whether a deviation will be tolerated “just this once”;
• whether safety will receive the same level of importance as quality, deadlines and productivity.

A manager is therefore not simply a person who communicates OSH rules. They are a critical control point between a prescribed safety measure and actual behaviour in the workplace.

Why Is Training Employees Alone Not Enough?

What Happens When a Manager Does Not Understand the OSH System?

When an employee is trained but their manager is not, a dangerous gap can emerge between what the employee has been instructed to do and what is actually expected of them in practice.

For example, an employee may have been trained to follow a procedure before intervening in a process, while their manager insists that a production stoppage be resolved as quickly as possible.

An employee may know that a particular task requires a permit to work, but be told that the documentation will be completed afterwards.

An employee may report damaged safety equipment, while the manager decides that the machine “can handle one more shift.”

In such situations, the employee receives two different messages:

• the formal message from the training;
• the operational message from their manager.

In a real working environment, the operational message will often carry greater weight.

Employees Do Not Just Follow Procedures — They Follow Managers’ Behaviour

Safety culture is not created by what is written in a company policy. It is created by what is approved, rewarded, overlooked or stopped on a daily basis.

If a manager:

• enters a production area without the required PPE;
• walks past an unsafe condition without taking action;
• ignores a reported near miss;
• praises speed even when safety measures have been skipped;
• considers OSH discussions a waste of time,

employees will quickly conclude that safety is not a genuine priority.

By contrast, a manager who asks questions, responds to reports, stops high-risk work and follows the rules by personal example sends a far stronger message than any poster or procedure.

That is why international good practice recognises leadership as a foundation of an effective OSH management system. ISO 45001 identifies leadership commitment, worker participation, competence, operational control and continual improvement among the key elements of the system.

The Manager Is the First Point of Contact for a Reported Hazard

Employees most often report an unsafe condition or irregularity to their immediate manager first.

The manager’s response determines whether:

• the hazard will be addressed in a timely manner;
• work will be temporarily stopped;
• the information will reach the OSH professional;
• a temporary control measure will be introduced;
• other employees will be warned;
• hazard reporting will be encouraged or discouraged.

If a manager perceives a report as criticism, a problem or an obstacle to production, the employee will probably remain silent the next time.

If the manager treats the report as valuable information that could prevent an injury, the organisation has an opportunity to act before consequences occur.

For this reason, managers must learn during training not only how to receive reports, but also how to provide feedback to employees, document the actions taken and monitor the implementation of corrective measures.

Does “Human Error” Really Explain an Incident?

When an injury or dangerous event occurs, the easiest conclusion is often: “The employee did not follow the procedure.”

But a proper investigation must ask additional questions:

• Was the procedure applicable under the actual working conditions?
• Did the employee have sufficient time, equipment and support?
• Did the immediate manager monitor implementation of the safety measure?
• Were there conflicting production and safety objectives?
• Had the same deviation been tolerated before?
• Had previous employee warnings gone unanswered?
• Were responsibilities clearly defined?
• Had changes to the process, equipment or organisation been assessed?

A manager trained in root cause analysis will not stop at the final error in the chain. They will look for the organisational, technical and management conditions that made the error possible.

This approach helps prevent recurrence. Punishing an individual without addressing the underlying systemic cause usually creates only the appearance of control.

Safety and Productivity Are Not Opposing Goals

An unplanned stoppage, equipment damage, employee injury, regulatory enforcement action or loss of a skilled worker can have consequences far greater than the time required to properly prepare for a task.

The International Labour Organization estimates that around 2.93 million people die each year from work-related factors, while approximately 395 million workers suffer a non-fatal occupational injury. ILO – Safety and Health at Work.

These figures demonstrate the scale of the problem. But for every company, another fact is equally important: many incidents develop through a chain of small, everyday decisions that appeared acceptable at the moment they were made.

The role of a trained manager is to recognise the point at which a short-term operational benefit begins to create an unacceptable risk.

Effective safety management therefore does not slow down business. It reduces unplanned downtime, errors, damage, absences, process disruptions and the loss of employee trust.

What Should Effective OSH Training for Managers Include?

Manager training should not be a shortened version of employee training, nor should it consist of several hours of simply reading legislation.

It should be tailored to the actual authority, responsibilities and decisions associated with a particular management role.

An effective programme should cover:

The Role and Responsibilities of Managers

Understanding the relationship between the responsibilities of the employer, managers, employees and OSH professionals.

Applying the Risk Assessment Act

Turning assessed risks and prescribed control measures into specific tasks, work orders, instructions and effective work supervision.

Planning Safe Work

Verifying conditions before an activity begins, the competence of those performing the work, the condition of equipment, required permits and necessary supervision measures.

Managing High-Risk Activities

Working at height, work in confined spaces, work involving electrical energy, LOTO (Lockout/Tagout), work with hazardous substances, hot work and other specific risks.

Contractor Management

Checking documentation, coordinating activities, exchanging information about risks, monitoring the implementation of safety measures and responding to deviations.

Safety Communication

Conducting short toolbox talks, giving clear instructions, asking open-ended questions and encouraging employees to report hazards.

Responding to Deviations

Establishing criteria for stopping work, introducing temporary control measures, escalating issues and reauthorising activities.

Investigating Incidents and Near Misses

Identifying immediate, underlying and systemic causes without automatically placing responsibility on the employee.

Monitoring OSH Performance

Using leading indicators such as the number of reported hazards, completed workplace inspections, implemented corrective measures, safety conversations and recurring deviations.

Leading by Example and Building a Safety Culture

Understanding how managers’ behaviour shapes employees’ actual priorities and behaviour.

How Can You Determine Whether Training Has Delivered Results?

The number of participants and a signed attendance record confirm that training was delivered. They do not confirm that management practices have changed.

The real impact of training can be seen when managers:

• check risks and working conditions before work begins;
• regularly conduct short safety talks;
• respond to reported hazards and provide feedback;
• stop work when required safety measures are not in place;
• involve employees in finding solutions;
• monitor the implementation of corrective measures;
• analyse near-miss events;
• incorporate safety into planning, procurement, maintenance and change management;
• do not allow deadlines or production targets to justify unacceptable risk.

That is why, following training, specific management activities, responsible persons, deadlines and performance indicators should be defined.

Only then does training become a tool for improving the system rather than simply another document for the archive.

Without Trained Managers, There Is No Sustainable Safety Culture

It is unrealistic to expect employees to consistently apply OSH measures if managers do not understand their purpose, fail to provide the necessary conditions or send a different message through their own behaviour.

An OSH professional can design the system, assess risks and propose control measures. However, managers are the ones who turn that system into everyday work organisation, decisions and behaviour.

Investing in manager training is therefore not just an investment in compliance. It is an investment in better decision-making, process stability, accountability, employee trust and genuine prevention.

Safety does not begin when an employee starts a task. It begins earlier — with the manager’s decision about how that task will be organised.

Burnout is most often viewed as an employee well-being issue, but its consequences can directly affect how work is performed – and, as a result, the safety of people.

When we hear that someone is burned out at work, we usually think of a person who has lost the motivation to work, is frequently absent or is considering leaving the company. For this reason, burnout is generally associated with employee satisfaction, motivation and staff retention. However, its impact goes beyond how an employee feels. It can also affect how safely they perform their work.

Burnout Is Often Not Recognized Immediately

Burnout is rarely identified through one obvious sign. More often, it appears as a gradual disengagement from work. An employee who was once actively involved may start working mechanically. They may find it harder to concentrate, become more easily frustrated by minor issues, and require more effort to complete tasks they previously handled without difficulty. At times, they may become more distant toward colleagues or clients, not because they do not care, but because they are trying to preserve what little energy they have left.

In this state, a person does not suddenly forget how to do their job. What changes, however, is the way they perform it. The likelihood of steps being carried out in the wrong order, information being misread or a response being delayed may increase. There may also be less willingness to double-check something that appears familiar or routine.

If the job involves driving, operating machinery, working at height, supervising other people or making important decisions, such deviations can have serious consequences.

Another concern is that employees often continue working even when they are already significantly exhausted. They are physically present, but their functional capacity may be considerably reduced.

Others may interpret this as carelessness, lack of interest or a poor attitude. The employee may then be told to try harder, become more organized or demonstrate greater commitment. This can miss the underlying issue and further deepen exhaustion.

Burnout Signals Organizations Should Not Ignore

The early signs should not be sought only in sick leave or employee turnover. They can also appear as an increase in minor mistakes, forgotten agreements, withdrawal from communication, unusual irritability or a growing feeling among employees that whatever they do is simply not good enough.

Burnout prevention is not about organizing a single workshop or occasionally reminding people to “take care of themselves.” It requires understanding what is draining employees day after day: workload, lack of support, constant availability, unclear expectations or the feeling that they have no influence over how their work is performed.

When an employee has exhausted their internal reserves, it is not only their job satisfaction that is affected. The reliability of work can also be compromised.

That is why burnout deserves a place in workplace safety discussions – before its cost becomes visible through a serious error, injury or an incident that could have been prevented.

When the term ESG is mentioned, the first things that usually come to mind are sustainability reports, carbon emissions, various indicators and regulatory requirements. However, ESG should not be viewed merely as a process of collecting data and preparing reports. Its real value is created much earlier – in the production process, in the office, warehouse, on the construction site and in every other workplace.

This is precisely where the strong connection between ESG and HSE – health, safety and environmental protection becomes evident. The modern ESG approach recognizes employee health and safety as an important part of the social, or “S,” pillar, together with working conditions, labour practices, employee engagement and workforce development.

A safe workplace is therefore not simply a matter of regulatory compliance. It is also an indicator of how an organization treats its employees, how it manages risks and the level of safety culture within the company.

ESG and Occupational Health and Safety: Where Does the “S” Pillar Begin?

The social component of ESG covers a company’s relationship with people – employees, business partners and other stakeholders. In this context, occupational health and safety are important elements of responsible business practices.

Good working conditions involve much more than formally implementing measures and meeting the minimum requirements prescribed by law.

What Do Good Working Conditions Involve?

They include a planned, well-organized and properly maintained workplace, safe equipment, appropriate working conditions, ergonomics, the management of hazardous substances and other risks, employee training at all levels, fire protection and preparedness to respond to emergencies.

Clear messages from management, open communication and the ability of employees to report hazards are equally important.

A company that encourages employees to raise concerns about risks, report near miss events or suggest improvements to the system demonstrates that safety is not merely a formal obligation, but an integral part of its organizational culture.

HSE and ESG: How Does Safety Become Part of Governance?

The connection between HSE and ESG does not end with the “S” component. HSE is also an important part of the “G” – the governance dimension of ESG.

Risk assessments, clearly defined responsibilities, procedures, supervision, internal audits, incident investigations and monitoring of corrective actions are typical HSE activities, but they are also fundamental elements of responsible corporate governance.

ESG therefore does not ask only how many injuries have occurred. It is also important to understand how the organization manages risks, whether management monitors performance, whether employees are involved, and whether lessons are learned from near miss events and incidents.

Risk Management Is More Than a Formal Procedure

Effective risk management means that an organization understands its key risks, knows who is responsible for managing them, understands how performance is measured and knows what action should be taken when deviations are identified.

In this sense, a risk assessment is not simply a document that must exist to satisfy a legal requirement. It should serve as the basis for defining preventive and protective measures and making decisions that directly affect employee safety and business continuity.

Why Are Incidents and Near Miss Events Important for ESG?

Every incident provides information about what did not work as intended within the system. The same applies to a near miss – an event in which there was a possibility of injury or damage, but the potential consequence ultimately did not occur.

Organizations that systematically report and analyze such events have an opportunity to take action before a serious consequence occurs.

That is why a mature HSE system does not measure only the number of injuries. It also monitors how the organization identifies risks, responds to incidents, implements corrective actions and prevents problems from recurring.

Environmental Protection: The Connection Between “E” and the HSE System

ESG and HSE are also connected through the third component – “E,” or environmental protection.

Proper management of hazardous substances, prevention of unwanted events that could affect the environment, monitoring and control of emissions, proper waste storage and equipment maintenance all contribute to protecting both employees and the environment.

For this reason, health, safety and environmental protection are increasingly being managed through an integrated HSE system.

One Risk Can Threaten Both People and the Environment

An incident involving a hazardous substance, for example, can simultaneously pose a risk to employee health, process safety, company assets and the environment.

This is precisely why an integrated approach allows a company to assess risks holistically and connect different areas of protection within a single management system.

ESG Indicators: How Do We Measure What Is Actually Happening?

To monitor progress, organizations need specific ESG indicators. However, their value does not lie simply in presenting them in a report.

Indicators should provide a realistic picture of what is happening within the organization and serve as a basis for decision-making and continuous improvement.

Organizations may monitor, among other things, the number and severity of injuries, incidents, reported near miss events, completion of training, results of internal audits and implementation of corrective actions.

It is important, however, to look at safety more broadly – across the entire value chain.

ESG Responsibility Does Not End With Employees

Risks do not arise only within the organization. They can also be associated with contractors, service providers, suppliers and other business partners.

Therefore, a responsible ESG strategy should also cover how a company manages risks across its value chain.

ESG Reporting Is the Result, Not the Starting Point

An ESG report should be viewed as the final representation of what actually took place within an organization during the reporting period.

If employees work in safe and healthy conditions, understand the risks, participate in improving the system and receive support from management, the company is already implementing an important part of its ESG strategy.

ESG should therefore not be viewed as another reporting obligation, but as a way for a company to responsibly manage its people, risks, the environment and its business operations.

A report can present the results, but an ESG strategy is built every day – in every workplace.

ESG is not reflected only in the content of a report, but above all in the quality of the working environment and the conditions in which employees work every day.

The cost of quality training is visible in the quotation. The cost of inadequate training usually becomes visible later – through errors, downtime, scrap, equipment damage, injuries, absences, customer complaints and lost client trust.

That is why the real question is not: “How much does employee training cost?”

The real question is: “What level of risk are we exposing our people and our business to if we assign an employee a task for which they have not demonstrated competence?”

In occupational safety and health, training is often viewed primarily as a legal requirement. For a responsible organization, however, it is also a business investment: in more reliable operations, fewer disruptions, consistent quality and employees’ ability to respond correctly when working conditions change.

What Does “Untrained Employee” Actually Mean?

An untrained employee is not simply someone who does not have a signed training form or certificate.

It can also be an employee who has formally attended training but:

• does not recognize the specific hazards associated with their workplace;
• does not understand the limits of safe work or the conditions under which an activity must be stopped;
• cannot correctly apply a work procedure or use personal protective equipment;
• has not been practically assessed as capable of performing the task safely;
• does not know how to respond to equipment failure, deviations or an emergency situation;
• operates new equipment or works within a modified process without appropriate additional training.

In other words, a training record is not the same as demonstrated competence.

How Much Does Lack of Competence Cost?

There is no single universal cost that applies to every workplace or company.

The cost associated with an employee who is not adequately trained to work safely and correctly can emerge in several areas at the same time:

1. Cost of errors and rework – incorrect handling, scrap, customer complaints, additional inspections and wasted materials.
2. Cost of downtime – stopped production lines, waiting for maintenance, delayed deadlines and unused capacity.
3. Cost of injury or ill health – lost working days, employee replacement, overtime, incident investigation, corrective measures and potential compensation claims.
4. Cost of equipment and infrastructure damage – repairs, spare parts, temporary removal of equipment from service and resulting production losses.
5. Cost of non-compliance – regulatory measures, fines, work stoppages, customer findings and failed supplier audits.
6. Cost of lost trust – delivery delays, complaints, difficulties securing new contracts and reputational damage.

The biggest problem is that these costs are rarely recorded under a single account. They are distributed across production, maintenance, quality, human resources, the occupational safety and health function and management. As a result, the real cost of inadequate training remains hidden.

What Do the Real-World Data Show?

According to estimates by the International Labour Organization, approximately 2.93 million people die each year as a result of work-related factors, while around 395 million workers suffer a non-fatal occupational injury.

EU-OSHA estimates that work-related injuries and diseases cost the European Union approximately €476 billion per year, equivalent to around 3.3% of EU GDP.

For 2023/24, the UK Health and Safety Executive estimated the total cost of new cases of work-related injury and ill health at £22.9 billion. The average total cost was approximately £10,000 per injury case and £24,200 per new case of work-related ill health. Of the total, around £4.3 billion represented costs incurred by employers.

These figures are not a price list that can be directly applied to an individual company in Serbia. They do, however, clearly illustrate the scale of the consequences when prevention, work organization and employee competence are not at the required level.

Does Training Alone Prevent Injuries?

No – and this is one of the most important professional messages.

A systematic review by NIOSH and the Institute for Work & Health, based on 22 randomized studies, found strong evidence that training has a positive effect on employees’ safety behaviour. At the same time, the authors did not find sufficient evidence that training, when used as a stand-alone measure, by itself reduces injuries and work-related ill health.

This does not diminish the importance of training. On the contrary, it shows where training belongs within the broader safety system.

Training cannot compensate for unsafe equipment, inadequate safeguards, poor work organization, unclear procedures or a lack of supervision. The best results are achieved when training forms part of a comprehensive system that connects risk assessment, technical and organizational measures, instructions, practical work, leadership and verification of how learning is applied.

That is why a quality training programme should not teach employees only what the procedure says, but also:

• why a particular control measure is necessary;
• how to apply it correctly in real working conditions;
• how to recognize a deviation;
• when work must be stopped;
• whom to report a problem to;
• how to respond in an emergency.

What Do Serbian Regulations Require?

The Republic of Serbia’s Occupational Safety and Health Act (“Official Gazette of the Republic of Serbia”, No. 35/2023) does not treat training as a mere formality.

Article 33 requires employees to receive training for safe and healthy work when entering into employment or another form of engagement, when being transferred to other duties, when new technology or new work equipment is introduced, when equipment is changed and when the work process changes. Training must be adapted to the specific characteristics of the workplace and the risks identified in the risk assessment document.

Article 34 requires training to be delivered both theoretically and practically, in accordance with a programme containing general and specific components. Theoretical and practical competence must be assessed at the workplace.

Periodic training for employees working in positions involving increased risk must be conducted no later than one year after the previous training, while for other workplaces it must be conducted no later than three years after the previous training.

For a legal entity that fails to adopt the required programme and provide the prescribed employee training, Article 100 provides for a fine of RSD 1.5 million to RSD 2 million. For the director or another responsible person, the prescribed fine ranges from RSD 30,000 to RSD 150,000.

A fine, however, represents only one part of the potential cost. The consequences of a serious incident, operational disruption or the loss of an important client can be considerably greater.

How Can a Company Calculate the Cost of Inadequate Training?

Instead of relying on general marketing claims, a company should calculate its own business case.

A basic model can be expressed as:

Cost of inadequate training = cost of errors and scrap + cost of downtime + cost of absences and replacements + cost of incidents + cost of damage + cost of non-compliance + lost business

To assess the impact of training, companies should monitor a period before and after implementation, using indicators such as:

• number of errors, customer complaints and rework;
• hours of downtime caused by improper handling;
• number of unsafe conditions, incidents and injuries;
• number of non-conformities identified during internal and external audits;
• time required for a new employee to reach the required level of independent performance;
• theoretical and practical assessment results;
• application of learned practices during workplace observations.

The return on investment can be calculated using the following formula:

Training ROI (%) = (avoided costs – total training costs) / total training costs × 100

It is important to emphasize that even serious international analyses do not establish one universal rate of return applicable to every occupational safety and health training programme.

Actual ROI depends on workplace risks, the initial level of competence, programme quality, management support and consistency in applying what has been learned.

The return should therefore not be assumed – it should be measured.

When Does Training Become a Real Investment?

Training creates business value when it is:

• based on risk assessment and the actual needs of the work process;
• tailored to the specific tasks, equipment and responsibilities of participants;
• aligned with the company’s current procedures and instructions;
• theoretical, practical and focused on real-life situations;
• completed with an assessment of knowledge, skills and the ability to respond correctly;
• supported by direct supervisors;
• followed by workplace observation, feedback and periodic knowledge refreshers;
• linked to measurable indicators of safety, quality and productivity.

Attendance at a training session confirms that an employee was in the room.

Only practical assessment demonstrates whether they can perform the work safely.

How Can You Improve Training in Your Organization?

The most expensive training is not necessarily the training with the highest cost per participant.

The most expensive training is training that takes employees’ time but does not change the way work is performed.

TEHPRO Education Centre develops statutory, professional and in-house training programmes based on risks, work processes and the specific needs of each organization.

The goal is not simply to transfer information, but to build competencies that can be assessed and applied in a real working environment – from safe equipment handling and high-risk activities to LOTO, Permit to Work systems, fire protection, emergency response and the development of a strong occupational safety and health culture.

Training is a cost that can be planned.

Lack of competence is a risk whose cost organizations often discover only when it is too late.

We often mention workplace stress as though it were a personal trait. Some people are more resilient, some more sensitive, and some are said to “well under pressure”. While that explanation is simple, it also shifts attention away from the conditions in which people actually work. When stress becomes chronic, affects a large portion of the workforce, and turns into the norm rather than the exception, it can no longer be viewed as an individual problem.

How Does Organizational Stress Develop?

Organizational stress rarely arrives with a dramatic announcement. It gradually builds through constantly tight deadlines, unclear priorities, frequent changes in direction, understaffing, or the persistent feeling that everything needs to be completed immediately.

Over time, subtle changes begin to appear. People become less patient with one another. Conversations grow shorter. Questions are asked less frequently because “there isn’t time to get into that right now.” Information is passed along informally, and anything that isn’t considered urgent is pushed aside for later.

How Does Chronic Stress Affect Decision-Making?

Prolonged pressure also changes the way we think.

Our attention narrows, switching between tasks becomes more difficult, and we’re more likely to settle for the first acceptable solution instead of carefully evaluating all available options.

Even experienced professionals may overlook something they normally wouldn’t – not because they’ve lost their knowledge or sense of responsibility, but because no one’s mental capacity is unlimited.

This is where stress begins to intersect with safety.

It often starts with seemingly minor issues: a skipped verification step, information that wasn’t communicated, instructions that were misunderstood, or a decision to continue working despite uncertainty about the situation.

Most of these situations pass without consequences.

Ironically, that’s precisely what makes them dangerous.

When nothing goes wrong several times in a row, the behavior gradually begins to feel acceptable. Over time, an unspoken norm develops:

“Things are always chaotic around here.”
“Let’s just get through this week.”
“We’ll fix it when things slow down.”

The problem is that the quieter period often never comes.

People adapt and keep moving forward, while elevated stress slowly becomes part of the organization’s daily routine.

Adaptation, however, should never be mistaken for the absence of consequences.

Sometimes it simply means we’ve stopped noticing them.

Recognizing the Early Warning Signs

When an error occurs, it’s easy to focus on the individual who made it.

It’s far more valuable to step back and examine what came before.

How long had that person been working without a meaningful break?

Did they have complete and accurate information?

How many times did priorities change that day?

Did they feel comfortable saying they couldn’t meet the workload, or were they worried it would sound like an excuse?

These questions often reveal much more than simply asking who made the mistake.

What Can Organizations Do?

Organizations should pay attention to these warning signs long before a serious incident occurs.

Not through another compliance checklist or formal audit, but through honest conversations about how work actually gets done.

Where are employees constantly rushing?

What interrupts their work?

Which decisions are routinely made under pressure?

What concerns are people keeping to themselves?

It’s equally important to re-examine practices that have gradually become “normal” even though they consistently push employees to the limits of their cognitive and emotional capacity.

Organizational stress becomes a safety risk when it begins shaping how people perceive situations, communicate with one another, and make decisions.

At that point, expecting individuals to simply be more careful, calmer, or more resilient is no longer enough.

The organization must have a closer look at the system within which those expectations exist.

An organization’s responsibility is not to eliminate every source of pressure – that would be unrealistic.

Its responsibility is to recognize the point at which job demands begin to exceed the capacity of the people expected to perform the work.

If these conversations only begin after an accident, injury, or serious mistake has already occurred, the warning signs arrived too late.

A safer workplace is not created by asking people to endure just a little more.

It is created when organizations take seriously the conditions that make it harder for employees to work carefully, think clearly, and make responsible decisions.

At TEHPRO, we encounter these challenges through our daily work with companies, as well as through consultations and tailored in-house training programs designed around the specific situations employees face in their work environment. This experience has consistently shown us how important it is to address these topics before they develop into incidents, workplace injuries, or serious organizational challenges.

In today’s business environment, where operational processes are constantly evolving and technologies are becoming increasingly complex, continuous employee development is no longer optional, it is a business necessity.

One question, however, continues to emerge: are standard training programs enough to ensure employees truly understand workplace risks and can apply what they’ve learned in their daily work?

Our experience, built over more than 35 years of working with organizations across various industries, shows that the answer is often no.

That is why more and more companies are investing in in-house training programs, training designed specifically for their organization, tailored to their processes, equipment, operational risks, and everyday challenges.

What Is In-House Training?

In-house training consists of professional training programs delivered directly within an organization and customized to its specific operational needs.

Unlike standardized seminars or generic courses, these programs are developed based on the company’s:

• Industry and business activities,
• Organizational structure and workflows,
• Existing procedures,
• Risk assessments,
• Equipment and technologies in use,
• Previous incidents and near misses,
• Regulatory and compliance requirements,
• Employees’ current level of knowledge and experience.

Instead of learning from examples taken from unrelated industries, employees work through scenarios they encounter every day, making it much easier to understand, retain, and apply the knowledge.

Why Generic Training Often Falls Short

Many organizations invest significant resources in employee training only to experience recurring issues such as:

• Failure to follow established procedures,
• Repeated unsafe behaviors,
• Limited understanding of individual responsibilities,
• Poor application of newly acquired knowledge in real work situations.

The reason is simple: people learn most effectively when they can relate new information to situations they actually experience.

If employees spend an entire training session discussing hazards associated with equipment they never use or procedures that don’t apply to their workplace, the likelihood of retaining and applying that knowledge decreases significantly.

This is why modern corporate learning increasingly emphasizes context-based, practical training that reflects employees’ real working environments.

What Makes an Effective In-House Training Program?

A successful training program doesn’t begin when the instructor walks into the classroom. It starts long before the training day with careful planning and preparation.

1. Understanding the Organization

The first step is gaining a thorough understanding of how the company operates.

This includes reviewing:

• Business activities,
• Organizational structure,
• Operational processes,
• Level of automation,
• Employee roles and responsibilities,
• Key operational challenges.

Without understanding the business context, it is impossible to design training that creates meaningful value.

2. Identifying Training Objectives

Every organization has different priorities.

Some aim to increase employee awareness, while others want to improve procedural compliance, reduce workplace injuries, strengthen communication between departments, or prepare for regulatory inspections or third-party audits.

The highest value comes from clearly defining what the organization would like to achieve before developing the training program.

3. Evaluating Existing Systems

Before designing the curriculum, it is essential to review existing documentation and practices, including:

• Risk assessments,
• Existing procedures,
• Internal inspection results,
• Incident and accident reports,
• Regulatory inspection findings,
• Previous training initiatives.

This transforms training from a formal requirement into a practical tool for solving real operational challenges.

4. Developing a Customized Program

Once the assessment is complete, the training content is tailored to the organization’s specific needs.

Depending on the objectives, this may include:

• Photos from the company’s facilities,
• Real workplace scenarios,
• Incident analysis,
• Hands-on workshops,
• Practical simulations,
• Group exercises,
• Case studies.

This approach significantly improves engagement and knowledge retention.

5. Using Effective Learning Methods

Modern professional training extends far beyond traditional classroom lectures.

Depending on the topic, effective learning methods may include:

• Practical demonstrations,
• Interactive workshops,
• Real-life simulations,
• Root cause analysis of workplace incidents,
• Facility walkthroughs,
• Group discussions and knowledge sharing.

The objective is to actively involve participants throughout the learning process rather than simply presenting information.

Common Topics Covered by In-House Training

Customized training programs can address a wide range of operational and compliance topics.

Common areas include:

Occupational Health and Safety (OHS)

• Risk assessment and control,
• Safe work practices,
• Incident management,
• Safety culture development.

Lockout/Tagout (LOTO)

• Hazardous energy isolation,
• Lockout procedures,
• Employee and contractor responsibilities.

Working at Height

• Hazard identification,
• Proper use of fall protection equipment,
• Safe planning and execution of work at height.

Fire Safety

• Fire prevention measures,
• Emergency response procedures,
• Evacuation and rescue planning.

Chemical Safety Management

• Chemical classification and labeling,
• Safe storage practices,
• Safety Data Sheet (SDS) interpretation and use.

Environmental Protection

• Waste management,
• Emissions control,
• Environmental compliance.

Benefits of In-House Training

More Relevant Content
Training is directly aligned with employees’ actual work processes and responsibilities.

Greater Employee Engagement
Participants immediately recognize the relevance of the material because it relates directly to their daily work.

Faster Knowledge Transfer
Employees can apply newly acquired skills immediately after completing the training.

Stronger Safety Culture
People better understand their role within the organization’s overall risk management system.

Improved Regulatory Compliance
Organizations are better positioned to meet legal and regulatory obligations.

Reduced Risks and Operational Costs
Better understanding of procedures helps reduce injuries, incidents, equipment damage, and operational downtime.

In-House Training as a Driver of Safety Culture

One of the greatest advantages of customized training is its ability to strengthen an organization’s safety culture.

Regardless of how well procedures, policies, or technical safeguards are designed, they only work if employees understand and consistently apply them.

When employees can identify hazards, understand the consequences of unsafe behavior, and know how to respond appropriately, organizations become safer, more resilient, and more efficient.

That is why leading companies no longer view employee training as an expense, but as a strategic investment in their people, operational performance, and long-term business sustainability.

Why Choose Tehpro for In-House Training?

For more than 35 years, Tehpro has been providing professional consulting and training services in the areas of:

• Occupational Health and Safety (OHS)
• Fire Safety
• Environmental Protection
• Risk Management
• Professional Education and Training

What sets Tehpro apart is not only our extensive knowledge of regulations and international standards, but our ability to transform technical expertise into practical solutions that employees can immediately apply in their daily work.

Every training program is designed to address the specific challenges of each organization, strengthen employee competence, and drive measurable improvements in operational performance.

Conclusion

In-house training is one of the most effective ways to bridge the gap between theory and practice, transforming knowledge into consistent, responsible workplace behavior.

When training reflects an organization’s actual operations, risks, and objectives, the results become evident much more quickly through improved workplace safety, stronger compliance, better operational performance, and a more mature organizational culture.

Looking for Training Tailored to Your Organization?
Contact the Tehpro Training Center to learn how our customized in-house training programs can help your organization improve workplace safety, reduce operational risks, strengthen compliance, and build a sustainable management system for long-term success.

How Proper Hazardous Energy Control Protects Employees, Equipment, and Business Operations?

Maintenance, servicing, cleaning, adjustments, and equipment repairs are routine activities in manufacturing facilities, industrial plants, power generation systems, and process industries. However, these tasks often expose workers to one of the most serious workplace hazards: the uncontrolled release of hazardous energy.

An unexpected machine start-up, the activation of a pneumatic system, the release of hydraulic pressure, or stored electrical energy can result in severe injuries, amputations, permanent disabilities, or even fatalities within seconds.

For this reason, modern industrial organizations implement LOTO (Lockout/Tagout) or the more comprehensive LOTOTO (Lockout/Tagout/Tryout) system, one of the most effective methods for controlling hazardous energy during maintenance and servicing activities.

Simply put, a LOTO system ensures that equipment is placed in a verified safe condition before anyone begins working on it.

What Is a LOTO System?

Lockout/Tagout (LOTO) is a structured system of procedures, devices, and safety rules designed to prevent the unexpected energization or startup of machinery, as well as the uncontrolled release of hazardous energy during maintenance, repair, cleaning, or servicing.

Before any work begins, equipment must be:

• Safely shut down
• Isolated from every energy source
• Secured with approved lockout devices
• Clearly identified using warning tags
• Relieved of any stored or residual energy
• Verified to confirm that it is safe to work on

With a LOTOTO system, an additional “Tryout” step is included to verify that the isolation has been successfully completed before maintenance begins.

In other words, turning equipment off is not enough. You must confirm that hazardous energy has been completely eliminated.

Which Energy Sources Present a Safety Risk?

One of the most common misconceptions is that LOTO only applies to electrical energy.

In reality, hazardous energy exists in nearly every industrial operation.

A comprehensive LOTO program controls:

• Electrical Energy – The most common cause of serious maintenance-related injuries due to unexpected energization.

• Pneumatic Energy – Compressed air systems can unexpectedly activate equipment or release components under pressure.

• Hydraulic Energy – High-pressure hydraulic systems can create severe crushing and injection hazards if not properly isolated.

• Mechanical Energy – Rotating shafts, conveyors, gears, belts, flywheels, and moving machine components can cause catastrophic injuries.

• Gravitational Energy – Raised loads, suspended platforms, or elevated machine components may fall if proper supports or restraints are not used.

• Thermal Energy – Steam systems, heated equipment, and high-temperature process lines remain hazardous even after shutdown.

• Chemical Energy – Pressurized chemicals and hazardous process materials require specialized isolation procedures before maintenance.

• Stored or Residual Energy – Capacitors, compressed springs, pressure vessels, elevated loads, and other energy storage systems can remain dangerous even after equipment has been switched off.

Why Do Maintenance Accidents Happen?

Investigations of industrial incidents around the world consistently show that many serious workplace injuries occur during routine maintenance activities.

The most common causes include:

• Missing or inadequate LOTO procedures
• Failure to identify all hazardous energy sources
• Improper energy isolation
• Insufficient employee training
• Contractors working without appropriate controls
• Failure to verify energy isolation before work begins

This is why LOTO should never be viewed as merely a technical procedure – it is a fundamental component of an effective occupational health and safety management system.

What Does an Effective LOTO Program Look Like?

A successful LOTO program is built upon clearly documented, equipment-specific procedures.

Each procedure should be developed for an individual machine, system, or process.

A comprehensive LOTO procedure should include:

• Equipment identification
• Equipment location
• Identification of all hazardous energy sources
• Isolation points
• Shutdown sequence
• Lockout and tagging procedures
• Residual energy dissipation methods
• Verification of zero energy state
• Safe work practices
• Equipment restart procedures
• Clearly defined responsibilities for everyone involved

Equally important, procedures should be visual, practical, easy to understand, and simple to follow in the field.

LOTO Training

Even the best procedures are ineffective if employees do not understand why they exist or how to apply them correctly.

Training is therefore one of the most critical elements of any successful LOTO program.

An effective LOTO course combines classroom instruction with practical, hands-on exercises.

Employees should learn:

• How to identify hazardous energy sources
• When LOTO is required
• How to properly use locks and lockout devices
• How to interpret LOTO procedures
• How to verify that equipment is in a zero-energy state
• Their individual responsibilities within the program

Training should also be tailored to different groups of personnel, including:

• Machine operators
• Maintenance technicians
• Supervisors
• HSE and Occupational Safety professionals
• Contractors and subcontractors

In complex industrial environments, effective coordination among all involved personnel is essential for preventing incidents.

Why Are LOTO Audits Essential?

Many organizations have written procedures, lockout devices, and formal compliance requirements in place.

However, this does not automatically mean that the system is functioning effectively.

Regular LOTO audits are essential for evaluating actual implementation in the workplace.

A comprehensive audit determines:

• Whether procedures are current and accurate
• Whether procedures reflect actual equipment configurations
• Whether isolation points are clearly identified
• Whether lockout devices are readily available
• Whether employees understand their responsibilities
• Whether contractors follow established procedures
• Whether critical operations require additional safeguards

The outcome of a LOTO audit is a practical action plan containing corrective and preventive measures that improve workplace safety.

The Benefits of a Well-Implemented LOTO Program

Our experience has shown that organizations implementing structured LOTO programs achieve:

• Fewer workplace injuries
• Improved equipment reliability
• Reduced unplanned downtime
• More efficient maintenance operations
• Better contractor management
• Compliance with international standards and industry best practices
• A stronger organizational safety culture

A LOTO program is an investment that simultaneously protects people, assets, and business continuity.

Tehpro’s Role in Building an Effective LOTO System

For more than 35 years, Tehpro has provided professional consulting and technical support in the areas of occupational health and safety, risk management, environmental protection, fire protection and prevention, education and training, and technical security solutions.

Our LOTO services include:

• Hazardous energy source identification
• Development and optimization of LOTO procedures
• Delivery of LOTO training programs
• System compliance assessments
• Comprehensive LOTO audits
• Development of corrective action plans
• Support in implementing international best practices

Our goal extends beyond regulatory compliance.

We help organizations build practical, sustainable systems that improve workplace safety, operational efficiency, and long-term reliability.

Conclusion

The most severe workplace accidents often occur when employees believe equipment has been safely isolated, while hazardous energy still remains within the system.

A properly designed, implemented, and regularly audited Lockout/Tagout (LOTO) program introduces control, consistency, and predictability into high-risk maintenance activities.

When fully integrated into an organization’s safety management system, LOTO remains one of the most effective safeguards against serious industrial incidents, protecting employees, preserving equipment, and ensuring uninterrupted business operations.

Would you like to assess the effectiveness of your existing Lockout/Tagout (LOTO) program or implement one within your organization?

Contact Tehpro to learn how we can help your company improve workplace safety, reduce operational risks, and establish a sustainable Lockout/Tagout (LOTO) program for the effective control of hazardous energy.