Uncovering Hidden Costs of Work-related MSDs

The National Institute for Occupational Safety and Health (NIOSH) has estimated that costs associated with work-related MSDs range from $13 billion to $54 billion annually. The direct cost of an MSD-related injury can range from $15,000 to $85,000 per case. Indirect costs (such as lost productivity and retraining) can double or triple this amount, according to government data. 

MSDs have hidden costs that can far exceed medical care and insurance expenditures. Without preventive measures and early interventions to help relieve discomfort, improve mobility, and promote recovery, MSDs often result in productivity lapses that can be difficult for employers to measure in terms of monetary loss. 

The potential for costly consequences occurs every time an employee experiences a strain, sprain, or other physical discomfort. In some cases, MSDs are acute injuries that may be caused by a vehicle accident, slip, trip or fall, or awkward movement while handling materials or tools. Other contributing factors may include repetition, advanced age, or underlying medical conditions. 

MSDs Come in Different Forms 

The BLS tracks and reports work-related injuries and illnesses on an annual basis. Due to their prevalence, the BLS has developed tables that cover a specific range of musculoskeletal disorders. These include

• Pinched nerves and numbness 
• Dislocations 
• Hernias 
• Strains, sprains, and tears 
• Connective tissue disorders 
• Carpal tunnel syndrome  

 The most commonly reported MSDs are sprains, strains, or tears associated with “overexertion.” (Refer to this interactive National Safety Council Injury Facts chart for details.) According to BLS data published in November 2024, MSDs in U.S. private industries during 2021-22 led to: 

• 502,380 days away from work with an incident rate of 25.3 per 10,000 employees 
• 473,700 days of restricted work activity or job transfer with an incident rate of 23.8 per 10,000 employees 
• 14 median days off work and 20 days of restricted work or job transfer. 

Sprains, strains, and tears accounted for 342,489 lost workdays and 359,000 restricted or job transfer days. Only injuries involving trauma to bones, nerves, or the spinal cord resulted in more lost time. 

Hidden Costs Add Up 

Hidden costs quickly accrue when injured workers are absent, assigned to temporarily modified jobs, or are at work but not fully engaged or productive (referred to as presenteeism). In some cases, replacement workers may have a higher-than-average risk for injury because they are not conditioned for the job, are expected to work overtime, or are not fully trained.  

The Occupational Safety and Health Administration’s (OSHA) Safety Pays online calculator can be used to estimate the impact of MSDs on an organization’s profitability. Using a 3 percent profit margin as a factor in this example: 

• The indirect cost of a work-related strain due to productivity loss and personnel reallocation is estimated at $35,225.  
• Direct costs, such as medical treatment and workers’ compensation insurance coverage, are estimated at $32,023.  
• A company would have to increase its sales by more than $1.1 million to cover indirect costs and $2.2 million to cover total costs for a single sprain.

OSHA also estimates that workers’ compensation medical costs for MSDs range from $30,000 to $80,000 per case. Additionally, research from the Society for Human Resource Management (SHRM) indicates that injury-related absences lead to an average 36.6% drop in productivity, costing businesses approximately $3,600 per hourly worker each year due to absenteeism. 

The average cost to replace an absent worker with a newly hired employee is around $4,700, though some employers estimate the total cost to be three to four times the position’s salary, Edie Goldberg, founder of the talent management and development firm E.L. Goldberg & Associates, told SHRM in 2022. An employer seeking to fill a position that pays $60,000 may spend $180,000 or more to fill the role. 

Meanwhile, other studies show that presenteeism (working while in pain or with limited function) can reduce productivity by 20 to 40 percent per affected worker, and the estimated cost of presenteeism for an employee with chronic pain from an MSD can range from $3,000 to $10,000 per year in lost productivity. 

Some costs are truly hidden because no one knows for sure how many cases of work-related physical discomfort are not reported. The authors of a newly published American Journal of Public Health article on OSHA Injury Data: An Opportunity for Improving Work Injury Prevention estimate it is a significant number. Reasons for under-reporting vary. For instance, employers may feel pressured to reduce OSHA-recordable case rates to avoid fines and improve safety records. Injured employees may fear repercussions if they report an injury to their supervisor, or they may have an “I’ll just tough it out attitude” when early intervention would be in their best interest. 

Prevention is Key 

To help contain costs, many companies are investing in ergonomic interventions, workplace wellness programs, and injury prevention strategies to mitigate the financial burden of MSDs. Employers who prioritize MSD prevention report declines in rates of injuries and related costs and improved workforce well-being and morale.  

Discover how WorkCare can help protect your workforce and your bottom line. Contact us for a consultation.  

Join our April webinar to learn how one global power company client implemented a groundbreaking Total Employee Health program designed to prevent musculoskeletal disorders (MSDs) and improve workplace wellness.