Safety’s Contribution to ROI

​Injuries in the workplace can be costly for a company. Initial medical bills for an injured employee can affect insurance premiums and  downtime for valued employees also costs a company in terms of not only dollars, but productivity as well. Thankfully worker injuries and illnesses have dropped considerably in the last few decades - down from 10.9 incidents per 100 workers in 1972 to 2.9 per 100 in 2016. (OSHA) However, any problem can still not only dramatically impact the lives of workers and those around them, it  can equate to substantial profit loses for a business, not to mention the loss of productivity.
 
The linear relationship between workplace safety and a company’s budget for safety might be something to consider. Often the problem has less to do with the actual dollar amount  invested in safety, but rather the approach to handling safety, or the "philosophy of safety" in the work environment. The fact of the matter is more and more executives and leaders are understanding that a stronger safety culture can make significant contributions to a company’s bottom line. At Corvex, we think of it not only as a "culture" but also as a strong safety community, powered by workers engaged in their own safety and the safety of those around them. 

Relationship Between Safety Programs and Profitability 

An ROI mindset where safety is concerned can prioritize programs and technology to move safety forward. But first, let's consider how safety affects an organization's bottom line: 

• Engaged Workers Are More Productive: Strong safety communities demonstrate worker engagement in safety, if now ownership of their own safety the the safety of those around them. In turn, major studies show that engaged workers are much more productive workers. A 2014 Gallup study showed that worker engagement can increase productivity by as much as 22%. That's a considerable boost to the bottom line in any business environment. 
• Preventing Injuries Can Lower Insurance Premiums: Implementing safety programs can keep workers safe, and insurance companies that take note of this will reward an organization for it. Premiums may stay at current levels, or even lower over time.
• Safer Workplaces Contribute to Reputation and Brand: In many industries like construction, mining and manufacturing, an organization's safety record has a direct correlation with their brand equity and the value of their name. A crisis is of course terribly damaging, but leaders need to remember how much promoting a safety community can help with worker retention, customer opinion, and brand equity, all direct contributors to the bottom line. 

Methods for Encouraging a Strong Safety Community
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The financial benefits of a strong safety commuity are apparent, but the central component to making them work are the workers.  Strict safety protocols, frequent training sessions, and leading safety technologie are all great features of a top safety program, but are useless without worker involvement. Three key elements to consider for encouraging a safety culture are:

• Worker Engagement: When it comes to learning new skills, people have a variety of ways in which they retain the new information. Historically when it comes to safety training, only one method has been employed: classroom lectures. Little to no engagement occurs in these sessions and workers can be indifferent to the information. By engaging employees and encouraging them to provide input and new safety measures, you can help them better retain the information and make them part of the safety community, not just bystanders.
• Strong Safety Community = Employee Retention: A work environment where employees feel that they are a valued asset will be a productive one. Making workers part of the safety culture and giving them the latitude to make improvements and engage with safety measures empowers them. And when they feel in control of how they do their work, you are less likely to have employee turnover.
• Employee Good Will: Altruistic capital might be one of the most important factors to a company’s bottom line. The intrinsic desire to serve and do a job well is something that money can’t buy. But when a company empowers its workers to be part of the safety community, giving them the ability provide feedback and input in real time, a new safety mindset can be cultivated. Most workers want to do their job well, so protecting them and giving them the tools to do it is the perfect way to foster their good will. 

​For many businesses, finding a return on their investment in safety programs can be elusive. It’s often difficult to quantify how effectively a safety program is in preventing accidents. Most safety programs focus on lagging indicators, which doesn’t necessarily equate to profits, but, at best, only savings.  With the right mindset and a program focused on leading indicatrs, workplace safety can be approached in a way that saves more than just money. Through a culture of safety, you can improve the heath and wellbeing of employees while increasing productivity and generating big ROI.