Don’t over complicate the business objectives of safety.
If a company employs a safety professional, their role is to mitigate as much risk as possible and eventually generate savings for the company. The simple fact is injuries waste money (lots of money) and therefore are to be avoided. This fiscal approach is not meant to downplay the human side of injuries and protecting the well-being of all employees. But the business case and human side of safety management doesn’t need to be in conflict – in fact these objectives are simply two sides of the same coin.
Companies that operate on a self-insured basis are typically well in tune with their numbers. Unfortunately, a large number of programs don’t have an understanding of the cost of safety. Unless you talk with a CFO or managerial accountant, you may not have a firm grasp of the cost of insurance and claim-related payouts. While the CFO or the accountant will have a solid grasp of the costs, they most certainly need to talk with a safety specialist to understand how safety initiatives can reduce these costs.
Requesting a meeting with a CFO on this topic is ALWAYS well received and ALWAYS a win-win exchange!
The graphic illustrates a normalized view based on 200 employees. With the addition of efficient and structured safety initiatives, the company was able to reduce its costs by nearly 50%. Who doesn’t want to be the employee that points out thousands of dollars in savings? Contact Safety Indicators to learn more about the cost of your injury rate and how they can reduce your ongoing spend.
Annual reviews also offer an opportunity to showcase to management the safety plan’s benefits and demonstratively answer the question, “What have you done for us lately?” Making the business case and showing a safety program’s positive ROI is the most effective way to attain the funding to continue, upgrade and/or optimize an effective program.
There is a saying in the safety industry:
According to OSHA, every $1 invested in injury prevention returns between $4-$6 in direct and indirect cost savings. OSHA estimates that businesses in the U.S. lose nearly $2B annually in direct costs as a result of worker injuries. The impact in regard to indirect costs is exponentially higher.
“If you think safety is expensive, try an accident.”
Whether you’re a small, family-run business or a large corporation, an investment in safety results in exponentially larger cost savings in the future. Request a free demo to see how Safety Indicators can use Simple Safety Math to help substantially reduce both your number of accidents and the direct and indirect costs associated with them.