California’s Division of Occupational Safety and Health (OSHA) performs random safety inspections on some companies as part of their health and safety program. In 2012, a study found that the inspected companies saved an average of $355,000 on workplace compensation claims versus companies that had no safety inspections. Injury claims at inspected companies were 9.4 percent lower and claim costs went down by 26 percent compared to uninspected companies. Inspections identify problems, encourage more leadership participation, and educate on compliance; after inspections, companies typically kept more comprehensive OSHA logs and had reduced compensation claims for four years after the inspection. These positive effects took place in both small and large companies. An inspection can raise awareness and reduce compensation claims, but so can implementing a unique, customized health and safety program for your company.
Though you may be looking to cut costs wherever possible, investing in health and safety program has great returns. A study of chief financial officers found that sixty percent of CFOs said that for every $1 invested in health and safety, there was a $2 return. Anthony Forest Products, an OSHA Small Business Success Story, saved $1 million in compensation claims after investing $50,000 in safety improvements and training. From 2004 to 2007, Goldman Sachs found that companies that didn’t invest in health and safety initiatives actually performed worse than other companies; which could be due to lost productivity among injured and ill employees, plus lower productivity from a new employee being trained to replace an injured worker.
A health and safety program tailored to your company can save money and keep productivity high. Not only that, but creating a safe workplace will keep your employees happy, reduce turnover, and improve your company’s reputation in the community. A health and safety program will not only save money, but it can keep your company productive – making more money. Looks like a sound business investment.