A 400 percent return on my investment
Businesses are always looking to cut costs, get the best return on every dollar they spend, and find a competitive advantage in their marketplace. How would you feel about a 4 – 8 times return on your cash outlay?
Research shows that for every dollar you spend on your safety and health program, you can save 4-8 dollars by preventing a workplace injury. On top of that, you promote a better, safer work environment which makes you a valuable employer, and helps retain valuable employees.
While your workers’ compensation insurance covers medical bills and lost wages, the vast majority of costs, such as increased administration time, training other employees, accident investigations, OSHA fines, down time, overtime, delays in production, etc…, come straight out of your company’s profits. So how does spending money on a safety and health program actually save you money? It costs money to set up the program, right? Wrong, not in the long run.
Many businesses look to trim their budget wherever they can; and while the safety budget may seem like an easy place to start, consider the potential costs of doing so. Say you have a $10,000 workers’ compensation injury; that injury is going to cost your company approximately $40,000 when you factor in the costs above. How much product do you need to sell, or how much service do you need to provide in order to make that money back?
Often, companies look at safety and health and workers’ compensation simply as a cost of doing business; but when done correctly they can work together to provide a positive impact on your financial statements and give you a competitive advantage. We all have to pay for workers’ compensation insurance, but if your costs are 20% lower than your competitors and you have your best workers healthy, that’s one more advantage you have.
An effective safety and health program can benefit any size organization. If you have questions on how to develop and implement an effective program, visit our website or contact us by calling 877.352.2121.
