Keeping employees safe is important to any business, but many simply think of it as an unavoidable expense. These business owners may even cut corners or simply do the bare minimum that the law requires. But it is far more accurate to think of safety as an investment that pays off in indirect ways.
Many health and safety consultants stress that one of the main benefits of an effective safety system is how it saves money in multiple ways across the organisation. Though these do not show up on your income statement, they are valuable nonetheless.
1. Increased productivity –With less people taking time off to recover, your business can operate at full efficiency more often. Forcing the remaining employees to make up for the lost productivity can be detrimental, and might just cause another accident. Even worse, what if the old employee cannot return? The cost of hiring and training a replacement will have a big financial impact.
2. Lower compensation claims –Apart from the medical costs of the employee, you will also have to pay worker’s compensation if they suffer an accident while on the job. Of course, there’s the ever present risk of litigation as well; even if you win against a lawsuit, the legal costs of defending yourself are still very high, not to mention the damage to the company’s reputation.
3. Boosted employee morale –Employees are much happier when they know that management cares about them, and one of the best ways to deliver that message is by reducing their risk of injury or death. Worker loyalty is an important asset to any business, since it greatly reduces turnover and helps build the company’s brand.
4. Reduced risk of property loss – Accidents hurt more than just people, they also tend to heavily damage or outright break any equipment involved. As tools and machinery are very expensive to replace, implementing the right safety policies can end up helping your company save in this area by extending the equipment’s lifespan.
These are the main ways that safety will improve your bottom line, but there are many others. Protecting your organisation’s most valuable assets – its people – is an investment that will always pay off.