It has been said ‘safety isn’t expensive, it’s priceless’ and there are countless studies that reflect this observation – It is important to take Work Health and Safety seriously.
In 2011 the Institute for Safety Compensation and Recovery Research (ISCRR) initiated a Return on Investment (ROI) project that included amongst others a Case Study around Noise Induced Hearing Loss. From a spend of $312,000 the final report notes actuaries estimated the Return On Investment was $1.5 million. In addition this particular assignment it was reported allowed WorkSafe to focus its strategic response to growing hearing loss costs.
In the US from a Liberty Mutual poll of financial decision makers the feedback was that on average for every dollar spent improving working place approximately $4.41 would be returned. Conversely a similar poll of US executives showed the ratio of direct costs related to an accident to indirect costs was for every $1 spent the actual cost was $3 to $5. This meant an accident costing $15,000 in real terms was a $45,000 to $75,000 slice off the bottom line.
Without doubt the benefits of sound Work Health and Safety systems in your business are many and we have listed some below.
- Assists in the prevention of accidents & injuries
- Demonstrates commitment to workplace health and safety
- Contributes to improved morale and employee retention
- Promotes self management of health and well-being of employees
- Progresses conformance with legislation thereby avoiding possible action under NSW WHS legislation as well as under common law.
- Allows establishment of appropriate controls with risk management
- Makes available effective WHS, Injury Management and RTW policies and procedures
- Minimises time off work following an injury
- Provides direction on engaging contractors and public liability
- Reduces impact of disability on families and community services
- Prevents loss of valuable skills, knowledge & experience
- Reduces workers’ compensation premiums
- Minimises impact of work related injuries on productivity
- Enhances corporate image
- Improves the efficiency of doing business and reduces costs
- Demonstrates effective risk control that may help lower general insurance premiums
- Enhances access to finance due to effective systems
- Increases market opportunities
- Provides competitive edge
- Advances likelihood of success in tendering process.
What next then? Work health and safety does not need to be complicated but you do need to take action. Contact us today for expert and friendly advise on the matter.
You need to ask are you leading a safe workplace?
- Is there leadership around WHS from the top of your organisation and is it visible?
- What example do you set? Do you talk about health and safety? When did you last do this?
- What are your significant risks and how do you know they are being controlled?
- Are the health and safety implications of your business decisions recognised and addressed?
- Is there evidence that the board or leader of your organisation is responsive to the health and safety information that is reported?
Main & Associates can simplify the process for you so contact us today.