[With Infographic] The ROI of Workplace Safety Practices: 3 Key Areas

Workplace safety practices result in lower injury rates. Yet beyond saving lives, occupational health and safety investment gains advantages in other areas of a business as well, including talent management and financial benefits. Within the construction industry specifically, more contractors reported seeing positive impacts from safety investment in 2015 than in 2012, according to the SmartMarket Report’s longitudinal study.

[Infographic] Download a free copy of "10 Critical Impacts of Safety Programs on Your Project" Infographic here.

Decreased Reportable Injuries

According to the U.S Bureau of Labor Statistics, the construction industry had the highest count of fatal work injuries in 2014, more than one third of which were caused by slips, trips, and falls. There are three ways to prevent falls due to slips and trips: promote good housekeeping, enhance walk/work surfaces, and wear suitable footwear (more details here). Preventing slips, trips and falls could be as easy as taking your time, checking your path, making wide turns at corners, keeping walk areas clear, and maintaining unobstructed view. Such simple training if delivered effectively, could have helped avoid unfortunate losses.

Talent Management Advantage

Table 1. Percentage of Respondents Reporting Positive Impact by Year

 

2012

2015

Reportable Injuries

71%

81%

Ability to Contract New Work

66%

76%

Staff Retention

46%

64%

Project ROI

51%

58%

Ability to Attract New Staff

37%

46%

Source: Dodge Data & Analytics (Smart Market Report 2016)

The statistics provided in the table above shows that 64% of respondents reported increased staff retention due to workplace safety investment in 2015 (18% more than in 2012), and 46% reported increased ability to attract new staff (9% more than in 2012). Employees are a construction company’s most valuable assets, thus staff retention has always been key to its long-term success. Following the recession, the resulted shortage of qualified construction talent has made attracting new staff incredibly helpful in this sector.

Financial Benefits

A common myth exists that safety training increases cost. However, the majority of SmartMarket Report respondents reported positive impact of safety practices on their project’s return on investment (ROI), well over one third of whom experienced an increase of 1% to 5% on project ROI (more detail in this infographic). Safety’s return comes down to one important thing – the actual cost of an injury. An injury’s direct cost comprises of workers’ compensation, medical expenses (which could go on for years following the accident), and liability costs, while its indirect costs involve lost productivity, worker replacement, training, increased insurance rate, fines and attorney fees, as well as bad reputation. A 2012 study concluded that inspections conducted by Cal/OSHA (California’s Division of Occupational Safety and Health) resulted in a 9.4% drop in injury claims, and a 26% average savings on workers’ compensation costs, which equaled $355,000 in jury claims and compensation paid for lost work. This helped paint the picture of how companies, due to the urge for short-term cost avoidance, ended up facing much larger costs.

All in all, workplace safety and health investment is not only the “right thing to do,” but also benefits the company’s bottom line in many areas of the business.

Interested in statistics on the positive impacts of workplace safety practices? Download our free infographic by clicking the button below: 

free-osha-hazwoper-standard-hazwoper-hazwoper-training-requirement-guide

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