Employers know all too well the importance of workplace safety, particularly in safety-critical industries where frontline workers face an elevated risk of injury. Beyond protecting employees from harm, ensuring workplace safety also holds significant financial benefits for businesses.
The costs of workplace injuries can quickly add up, including medical expenses, increased workers’ compensation premiums, lost productivity, decreased employee morale and potential legal fees and fines. The total cost of work-related injuries and deaths in the US alone was a staggering $171 billion in 2019, according to the National Safety Council’s Injury Facts report.
However, investing in workplace safety programs can help mitigate these costs and risks, while also improving productivity, boosting employee morale and ensuring legal and regulatory compliance. In fact, according to the Occupational Safety and Health Administration, for every $1 spent on workplace safety, employers can expect a return on investment of $4-6.
Let’s take a closer look at some of the ways workplace safety programs pay off.
Workers’ Comp Savings
One of the biggest financial benefits of workplace safety programs is lowered workers’ compensation premiums. By implementing safety measures and training programs, employers can reduce the frequency of workplace injuries and claims filed, which can lower their workers’ compensation premiums. Safety programs also help companies reduce the severity of injuries when accidents do occur, which can lower the costs associated with medical treatment, rehabilitation and disability benefits.
For example, the National Safety Council found that employers who implemented safety programs experienced a 52% reduction in workers’ compensation claims and a 60% reduction in the cost of those claims. This can translate into significant cost savings for businesses.
Case Study: Kinetic Reduces Injury Risk for Nurses at a Residential Healthcare Facility by 58%
Increased Productivity and Employee Morale
A safe workplace is also a more productive workplace. When employees are injured on the job, they may need time off work to recover, which can cause delays in projects and impact overall productivity. A workplace safety program can help prevent accidents and injuries, allowing employees to stay healthy and productive. According to OSHA, businesses that implement safety programs see a 20-40% reduction in accidents and illnesses, which can lead to increased productivity.
In addition to increased productivity, workplace safety programs can also boost employee morale. When employees feel comfortable, valued and safe, they are more likely to be engaged and committed to their work. This can help reduce absenteeism and lower turnover rates, improving overall productivity by reducing the need for costly recruitment and training of new employees.
Regulatory Compliance
Non-compliance with state and federal safety regulations can be disastrous and cost an organization financially and in public perception. For example, OSHA requires employers to provide a safe and healthy workplace and can issue citations and fines for non-compliance.
A workplace safety program can help businesses comply with regulations and avoid fines or legal fees related to workplace injuries. The programs help employers identify and eliminate hazards in the workplace, which can help them comply with regulatory requirements. Furthermore, they help employers develop and implement safety policies and procedures consistent with regulatory requirements, provide training to employees on best practices for workplace safety and help to maintain necessary records and documentation.
Improved Reputation and Customer Satisfaction
Investing in workplace safety can also enhance a business’s reputation and customer satisfaction. Consumers are becoming increasingly concerned with the ethical and social responsibility of the companies they do business with. A business with a strong safety record and a commitment to employee well-being can attract customers who prioritize these values.
Furthermore, businesses with good safety records are less likely to experience negative media attention or legal issues related to workplace safety. This can help maintain a positive reputation and avoid costly legal fees.
A Wearable Safety Program
One example of a workplace safety program with significant financial benefits is wearable safety technology programs. These programs use wearable devices with built-in sensors that detect and alert workers to potential hazards in real time. In addition to reducing the likelihood of workplace injuries and associated costs, they provide valuable data on workplace safety.
For instance, wearable devices may use sensors to monitor employees’ biomechanics and provide insight into potential ergonomic issues or unsafe work practices. This is especially valuable for the industrial workforce that faces a variety of safety hazards on the job, such as awkward postures that can stress their bodies and lead to musculoskeletal disorders. The data collected can be used to make informed decisions about workplace safety policies and procedures that help to reduce accidents and injuries.
Kinetic wearable technology has been proven to reduce workplace injuries by 50-60% and lost work days by 72%. Provided to policyholders at no extra cost, the Kinetic Reflex detects high-risk behaviors and provides data-driven insights to help protect workers and enhance the bottom line.
Learn more about smarter insurance coverage that keeps workers safe and reduces costs today!