Business approaches and sayings differ, but the age-old adage that you must spend money to make money never seems to get too old, because it keeps getting used. This axiom is mentioned directly here to make the connection of the cost of doing business that spending money just naturally and logically comes with the territory of building a business, including capital expenditures, general operating expenses, lease payments and online and offline advertising. One cost not normally mentioned often is businesses need to invest in is workplace safety.
Business owners, CEOs, and CFOs gladly note that there is a cost associated with workplace safety. When the costs of enhanced safety are described, they hone on the extraneous expense for the business associated with safety agendas, safety courses and webinars, additional safety protocols, and capital costs of new safety equipment. Focusing the conversation by strictly concentrating on the expenses and not the advantages the new safer workplace and worker skill sets, businesses completely miss the boat on why the money was invested and how improved safety can improve a company’s bottom line in the long run.
Stating investing money on workplace safety is a smart business investment is more than just lip service. Investing money on workplace safety will produce real benefits that include saving money for the company because of reduced losses due to injury or damage to business equipment, improved employee morale and improved bottom line because of continuous uninterrupted business operations.
Workplace Safety Investment Will Produce Dividends for Years to Come
When a business invests in workplace safety components and training the cost may appear to be incredibly high to certain businesses. This viewpoint regarding cost is legitimate because workplace safety requires an investment. Businesses working on building a workplace safety culture mandates spending money on safety education, webinars, workshops, conferences, complete workplace safety evaluations with licensed safety experts for the company to become completely operational.
Businesses need to acknowledge for themselves that by spending money now on safety it will translate into savings that will significantly outmatch the initial expenses incurred. Companies operating with an operational safety culture is a company with top notch employees that are safer and one that is striving on an ongoing basis to produce work and or services that are improving all the time.
A well-established safety culture permits companies to incur lower expenses providing services or products because company workers complete their work more quickly and safer with less workplace injuries. The company will realize saving through less material loss and downtime due to work assembly stoppages.
Lower workplace injuries can mean huge potential company savings. One workplace injury can cost more than $100,000 depending on the severity of the injury. When a business attempts to make up the cost of the injury the expense can be calculated to potentially be 1000 times greater due to loss in sales and workplace productivity. It is a proven fact that spending the money from current sales on addition workplace safety protocols, operational safety and safety education has the real potential to stop the injury described here from happening.
Worker Workplace Safety Culture Return on Investment
When someone is injured at the workplace the cost is significant, but when someone’s life is lost at the workplace the cost can be devastating. Saving lives in a business through a commitment on establishing workplace safety culture is paramount for all businesses. Nothing less is acceptable. The crushing negative impact of loss of an employees’ life at the workplace is incalculable. A loss of an employee would be devasting for the company financially and from employee morale perspective. However, companies can avert workplace safety occurrences and improve company employee optimism through spending money on workplace safety.
Employers that establish their company as workplace that is safe to work at inside a specific industry known for higher workplace safety hazards are known to keep employees longer and to have success in hiring better talent. This fact builds up the company’s staff so it can complete their daily job task more efficiently and the company is able to spend less money on hiring, training, and bringing new employees onboard.
Businesses that are run well and are safer with quality employees that are present in their jobs mentally due to top-notch safety training are in a much better place than businesses dealing with high expenses because of workplace injuries and Osha fines & citations.
Developing a financial plan for your business to spend money on workplace safety is a wise business decision that will pay dividends for years to come. The money spent on creating a workplace safety culture in the beginning is nominal when comparing it to the crushing costs a business experiences when an employee is injured. When someone gets hurt at the workplace its also incurs losses from fines, OSHA citations and employee attrition. Workplace safety investment develops ongoing returns on investment because work is done more effectively, correctly, and employees’ optimism. Being in business means decisions must be made that are not easy that can be expensive. Deciding to invest in creating workplace safety culture is no-brainer that will pay huge dividends down the road for the business.
Safety Counselling Inc.’s expert safety professionals with over 150 years of experience can benefit your business by helping you reduce lost-time accidents, lower insurance premiums, lower indirect costs, and create a more productive atmosphere. A comprehensive safety program can help create a safe working environment that benefits the entire organization. For information on how we can help you with your Albuquerque or New Mexico business workplace safety requirements give us a call at 505-881-1112.