Proving the success of a safety program is crucial for organisations of all sizes. Not only does it demonstrate that the company is committed to the health and well-being of its employees, but it also helps improve the company's reputation and increase investor confidence. A successful safety program can also help reduce costs associated with workplace accidents and injuries.
A study carried out by Liberty Mutual revealed a staggering statistic - 95% of business leaders surveyed believed that their company's safety initiatives had a positive impact. The survey also uncovered that for every $1 spent on direct injury expenses, there were indirect costs ranging from $3 to $5.
In 2020, the toll of workplace injuries reached a staggering $163.9 billion. This includes wage losses ($44.8 billion), medical expenses ($34.9 billion), and administrative expenses ($61.0 billion). Additionally, the total cost included employers’ uninsured expenses of $12.8 billion. The cost of vehicle damage in work-related incidents was $4.3 billion and fire losses were $6.2 billion. The average cost per worker was $1,100, but the cost per injury requiring medical attention was $44,000 and the cost per death was $1,310,000.
Now that we've calculated the tip of the iceberg costs for a workplace accident, how can we prove a return on investment in our own safety programs?
In this article, we will discuss the importance of proving a successful safety program, and provide an overview of what will be covered. We will delve into the data input and output, and explain how this data can be used to forecast potential safety incidents. We will also discuss how to utilise this data to demonstrate the return on investment (ROI) of a safety program. This article is intended to provide practical guidance to help organizations create and maintain a successful safety program.
The sources of data for a safety program can include workplace inspections, employee training records, injury reports, and equipment maintenance records. These data sources provide valuable information about the effectiveness of current safety procedures and help to identify areas for improvement. Collecting and organizing the data is a crucial part of any safety program. Data should be recorded consistently and accurately, and be easily accessible for analysis. After conducting a survey of Australian Safety Professionals, nearly 90% of respondents valued the need for reporting and analytics as part of their safety program.
The use of digital tools and software can greatly simplify the process of collecting and organizing data, but it is important to ensure that the technology used is secure and protects sensitive information.
Data can be used to forecast potential safety incidents by identifying patterns and trends. For example, if a workplace inspection reveals that a particular area has a high number of safety hazards, it is possible that a safety incident could occur in that area in the future. By analyzing data and taking proactive measures to address identified issues, organizations can greatly reduce the likelihood of a safety incident occurring.
Data can also be used to measure the effectiveness of safety training programs and equipment maintenance procedures, allowing organizations to continuously improve their safety programs over time.
Adequate maintenance of equipment ensures that it runs at its optimal condition. This funnels into your ROI with an increased lifespan of the equipment, minimised risk of the equipment breaking and minimised strain on moving parts reducing its energy and resource consumption.
Data analysis is a crucial component of any successful safety program. By analyzing data from various sources, organizations can identify patterns and trends that can help predict future safety incidents. For example, if a high number of accidents occur in a specific area of the workplace, you can evaluate whether there are safety hazards that haven't been mitigated, or more safety training for those that work in that area. By using data analysis to identify these trends, organisations can take proactive measures to prevent safety incidents from occuring.
As a specific illustration, safety managers can leverage the information generated from fatigue assessments that monitor fatigue levels among assembly line workers on shifts. By analyzing the data collected over a period of several weeks, the manager can determine the time of day when workers are most likely to experience fatigue (which could raise the risk of injury) and implement countermeasures such as providing additional breaks to decrease the hazard.
Data can also be used to measure the effectiveness of safety programs. By analyzing data on the number of accidents that occur before and after a safety program is implemented, organizations can determine if the program is having a positive impact.
Take for instance SafetyIQ’s safety program. It has proven to have significant positive outcomes for our clients. Ventia, as a client case study, was facing frequent incidents related to worker fatigue during travel. However, after adopting our Journey Management and Risk Assessment tools, they have not reported a single fatigue-related incident since.
Demonstrating the return on investment (ROI) of a safety program is crucial for organizations. Not only does it show that the company is committed to the health and well-being of its employees, but it also helps to justify the investment of time and resources into the safety program. ROI analysis can also be used to secure funding for future safety initiatives.
There are various metrics that can be used to measure the ROI of a safety program.
These metrics can include the:
In addition, data on employee morale, productivity, and satisfaction can also be used to measure the ROI of a safety program.
Presenting the results of the ROI analysis in a clear and concise manner is crucial for demonstrating the value of a safety program.
According to research, the majority of safety professionals (64%) find that traditional paper-based solutions present challenges in analyzing safety data and identifying trends. In contrast, the use of digital solutions is seen as highly advantageous, with 80% of them reporting increased efficiency and easier analysis of data and trends.
It is also important to communicate the results of the ROI analysis to stakeholders, including management, employees, and investors, to help secure funding for future safety initiatives and to demonstrate the ongoing commitment to a successful safety program.
The success of a safety program is crucial for protecting employees and reducing costs associated with workplace accidents and injuries. Proving the success of a safety program not only shows the company's commitment to the health and well-being of its employees, but it also helps to justify the investment of time and resources into the safety program.
To continue improving the safety program, organizations should continuously collect and analyze data, take proactive measures to prevent safety incidents, and continually assess the ROI of the program. Additionally, organizations should continuously review and improve their safety procedures, and regularly communicate the results of their efforts to stakeholders to demonstrate their ongoing commitment to a successful safety program. By following these steps, organizations can ensure that they are running a successful and effective safety program.
Don't have a way to effectively manage and analyze your safety data? Check out our EHS Software Buyers Guide. Make sure you find the best safety management system for your needs.
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