Safety: A 4:1 Return on Investment!
Is safety a budget item at your business? If you said no, you are not alone. In fact, just a few short years ago you would have been hard pressed to find a small business that did incorporate safety into their budget plans. Budgeting for safety is usually not included in most management seminars or traditional business school curriculum. But the pendulum is beginning to swing as more and more companies discover the role safety can play in the bottom line success of their business. The Department of Labor calculates that for every dollar you invest in safety you receive a four-dollar return. Companies who budget for safety have learned that safety pays.
Tecton Products LLC, a small business in North Dakota, has saved $45,000 on its Worker’s Compensation premiums in the past five years and has had its story promoted by OSHA. “Safety is a part of our culture,” said Tom Gohdes, Tecton’s director of operations. “It comes from attitude and actions.” Businesses that make safety a part of all aspects of their operations, including budget planning, experience positive benefits. Documented results include the expected reduction in accidents and injuries and their associated costs, but additional benefits include increased productivity, reduced absenteeism, reduced employee turnover, increased employee morale, and increased profitability.
Creative Business Resources can assist you in establishing a safety and health plan and budget at your organization. The first place to begin is a work site analysis and a review of your incident history. Look for trends that have impacted your business and then identify countermeasures to prevent their reoccurrence. This is where a Safety Consultant can help! CBR is able to provide knowledgeable, qualified consultants who can determine what the needs are, how to address them, and the costs that might be associated with doing so. An investment here could reap significant dividends
Your employees are also a valuable source of information to improve your operations. In addition, it is important to identify the regulatory requirements that require action on your part. Items to consider for budgeting may include safety training, placards and signs, personal protective equipment, facility maintenance or upgrades, new equipment, guarding, incentives or recognition, and outside expertise. In today’s competitive marketplace, safety is not an option but a requirement for success. Failure to plan for safety is planning to fail.
Contact us or request a proposal for more information!
