UK pharmaceutical companies are paying a hefty price for errors made by their staff, new research has unveiled.
Losses are estimated at $46.8m (£23.9m, €29.8m) a year , with 85% of pharmaceutical companies reporting exposure to impaired reputation in the last 12 months due to employee misunderstanding.
Impact on businesses of employee misunderstanding, specifically among the
- Petrochemical, and
- Transportation sectors.
According to the report, both UK and US employees are costing businesses $37bn (£18.7bn, €23.53bn) every year because of a lack of understanding.
One UK pharmaceutical company surveyed for the white paper learned an expensive lesson when ‘a procurement error resulted in significant production downtime. A dedicated production facility could not function without a chemical catalyst. This oversight left us with no option but to shut down production.’
Company was affected by
- Poor procurement practice (18%)
- Industrial tribunal settlements (17%) and
- Personal injury (11%).
Nine out of ten pharmaceutical companies said employee misunderstanding increased exposure to injuries to their personnel or the public, and loss of sales (96% over the past 12 months. Plus, around 89% said they had been exposed to reduced productivity and 85% cited impaired reputation.
The Association of the British Pharmaceutical Industry estimates that 73,000 people are employed directly by the sector