We’ve all heard that investing in safety NOW can save money and increase production in the FUTURE, but how much money can actually be saved? According to an article in Safety and Health Magazine for every $1 spent on prevention a return between $2-$6 can be expected. While these savings might not be apparent immediately that amount of savings in the long run can be huge!
The article discusses how the cost of injuries directly relates to the amount of savings for any given company. The cost of an injury must be split into two separate categories; direct and indirect costs. A direct cost includes things like medical expenses, workers compensation, property loss, and litigation. The CDC estimates that a single fatal injury would cost in direct costs about $991,027 where a study done by the NSC estimates those costs to be closer to $1.42 million. While these numbers may seem high, in reality they may be a whole lot higher when indirect costs are taken into account. Indirect costs are associated with loss of productivity, worker replacement, workplace disruption, insurance premium increases, and attorney fees. These indirect costs are estimated to more than double the direct cost of a single fatal injury. In fact, in the construction industry it has been estimated that indirect costs are as much as 17 times more than direct costs. So a fatality that cost $1.42 in direct costs could cost as much as $24.14 million dollars when indirect costs are taken into account! That puts things in perspective quickly!
While saving money and increasing production and profits by cutting injury costs is a huge factor when looking into spending a large amount of money on injury prevention, the real incentive should be the number of people that can be saved from an injury, fatal or not. The article in Safety and Health magazine talks about Schneider Electric, a company that decided to invest in safety and have seen great results. Their injury rate in 2002 was 3.6 per 100 workers. After making improvements in safety they cut their injury rate back to .5 per 100 workers by 2013. If you do the math that is about 900 fewer people that would have been hurt in just a decade!
SlipNOT® can help you start saving money on slip and fall injury prevention. The file hard, dependable products have been known to stay slip resistant for decades even in heavy traffic areas. SlipNOT® products are extremely versatile and can be utilized in almost any environment. Whether the products are customized to your specifications or you purchase them in stock sizes and cut them in the field, the metal non slip products are well worth the investment.
For more information on the Health and Safety article:
Morrison, Kyle. “The ROI of Safety.” www.safetyandhealthmagazine.com May 23, 2014, June 23, 2014. < http://www.safetyandhealthmagazine.com/articles/10414>
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