Want to save cost? Start with your work safety
Under the competitive environment, companies have invested a large amount of time and resource into cost reduction. To reduce cost to increase profitability, to reduce cost to increase competitiveness. Companies look into areas like procurement to reduce the cost of material, to look into production planning to increase efficiencies, to look into human resource to cut unnecessary human resource budget. However, seldom do companies look into the financial benefit of work safety.
Providing a safe work environment not only saves the company from the medical bills and the fines from the regulation, but it also helps to create many indirect cost benefits. Providing a safe work environment builds up the trust between the employees and the company. Employees will feel that they are being cared about by the company. In turn, motivating them to put more efforts into their daily work. The same job task could produce different results. For instance, a procurement can choose to purchase supplies without putting much effort into negotiating with the vendor or instead he could compare the pricing with many vendors and negotiate diligently with the vendors to help the company to find the best possible price. From the two different scenarios, at the end of the day supplies are brought back, but at a very different price. Showing the employees that you care about them is one way to motivate them to perform at their best. As result, your company reputation is leveraged, delivering a positive image to your investors, clients, and the community.
According to the Liberty Mutual Workplace Safety Index, in 2016 the estimated cost of workplace injuries amounts to USD 62 billion indirect U.S workers compensation cost. That is more than a billion dollars a week. A recent study on the top 10 causes of serious injuries and their direct cost to businesses measured in (billions).
1. Overexertion involving outside source -- $15.08
2. Falls on same level -- $10.17
3. Falls to lower level -- $5.40
4. Struck by object or equipment -- $5.31
5. Other exertions or body reactions -- $4.15
6. Roadway incidents involving motorized land vehicle -- $2.96
7. Slip or trip without fall -- $2.35
8. Caught in compressed by equipment or objects -- $1.97
9. Struck against object or equipment -- $1.85
10. Repetitive motions involving micro-tasks -- $1.82
Article by Daywey Chen, KYMC