Every company big or small is always trying to find a way to improve profitability. Some companies focus on increasing sales while other look to improve efficiency. One thing many companies overlook is using your safety program to do both; increase sales and improve efficiency.
It is commonly thought that safety actually increases costs to an organization, but the exact opposite is actually true. Safety can have a huge ROI for your company. Here are the top five financial benefits of a safety program:
- Insurance Premium Savings
In very general terms, as you implement a safety program you will have fewer injuries and therefore fewer claims. Fewer claims translates into lower premiums. Lower premium means more profit for the company.
- Self-Pay Claims Savings
Most companies have ancillary claims that they decide to pay directly and not submit to the workers’ compensation insurance. Whether it be a small fender bender, a damaged windshield or an injured bystander. By implementing a safety program, you will have fewer claims and fewer potential lawsuits, lowering your exposure to self-pay claims as well.
- Productivity Improvement
You might think that working safely slows you down and decreases productivity, but that is simply not the case. The safer your people work, the more productive they are. Injuries take time away from working on the job and create an environment where employee morale is low, directly impacting productivity.
- Decreased OSHA Citations
OSHA citations come with hefty fines. If OSHA comes out and you are not in compliance, you can guarantee that you are going to come away with a financial citation. A well-managed safety program proactively reduces your exposure to OSHA citations.
- Access to More Jobs
Many of you work in industries where your customers require you to be safe. In most cases, you cannot qualify to bid on certain jobs if your safety record is bad. And even if you could qualify, having a bad safety reputation can make other contractors hesitant to work with you. Implementing a safety program will help you qualify for more work.
If you are ready to get your safety program in order, focusing on the Six Pillars of Safety is a great place to start.
If you would like further information about the financial benefits of a safety program or help getting your safety program back on track, please contact us.