Even today, some organizations subscribe to the widespread belief that health and safety management is the necessary cost of protecting workers. But spending on your health and safety systems isn’t just the price you pay to keep your organization safe—it’s a strategic investment.
Taking steps like creating a comprehensive health and safety program, hiring dedicated health and safety personnel or implementing an EHS software solution can have a far-reaching fiscal impact on every area of your business—from protecting your reputation to improving employee satisfaction.
Below, we’ll share six examples of how investing in your organization’s health and safety systems can secure an impressive ROI.
1. Enhancing workers’ well-being. Employees are every organization’s most valuable asset. By investing in health and safety, companies can improve employee satisfaction and morale, reduce turnover rates and absenteeism and foster camaraderie between workers. Lower rates of absenteeism and turnover can boost productivity and improved employee morale and satisfaction can give an organization’s workplace culture the chance to thrive.
2. Increasing efficiency and productivity. Establishing streamlined safety processes can lower your organization’s incident rate and boost productivity. In a healthy, safe workplace, employees can focus on their tasks without concerns about potential hazards or the disruptions that result from incidents. This leads to streamlined operations and greater output.
3. Complying with regulations. Businesses must remain compliant with regulations set by organizations like the Occupational Safety and Health Administration (OSHA) in the U.S. and the Health and Safety Executive (HSE) in the U.K. to avoid fines and penalties. These regulations aren’t static. When they change, companies need to update their practices accordingly.
4. Saving incident costs. Incidents can be expensive. While the direct costs of an incident might include workers' compensation, sick pay, fines and the costs of replacing or repairing damaged equipment, indirect costs can include the cost of a new hire to replace an injured worker, training costs for a new hire, damage to your company’s reputation, additional administration work, higher insurance premiums, lost time spent on investigating the incident and lower morale and trust among employees. When a business invests in health and safety, consequently lowering their incident rate, the potential saved costs can be significant.
5. Public Image. Today’s organizations face heightened scrutiny and pressure, with stakeholders, customers and the public closely examining their ethical and safety practices. Demonstrating a commitment to protecting your workers’ health and safety can bolster your reputation.
6. Reducing risk. Investing in your organization’s health and safety systems not only mitigates the risk of incidents but can also lead to lower insurance premiums. Insurance providers often reward businesses with proactive safety practices, recognizing the reduced likelihood of claims. This not only directly contributes to cost savings but also reinforces the financial benefits of prioritizing health and safety within your organization.
When organizations invest in the health and safety of their employees, the benefits have the ability to outweigh the costs. Investing in health and safety isn’t just a cost—it’s a strategic move with substantial returns. From elevating employee well-being to maintaining regulatory compliance, each step your organization takes to protect your workers has the potential to move you closer to your business goals.
Interested in learning more about the power of health and safety software? Check out our toolkit: The Ultimate Guide to EHS&S