Return on Investment
The ROI on $1 Spent on Safety - A recent Liberty Mutual poll of executives shows that for every $1 spent on direct costs related to an accident, there are another $3 to $5 worth of indirect costs...putting the actual cost of an accident (with direct medical and compensation costs of $15,000) at somewhere between $45,000 and $75,000. Most executives polled by Liberty Mutual said that for every $1 their company spent on workplace safety, they saved at least $3. In a recent poll of financial decision makers the participants perceived that on average for every dollar spent improving working place approximately $4.41 would be returned.
Resource: ASSE (pdf)
In July of 2009, the Associated General Contractors Oregon-Columbia Chapter (AGC) and SAIF Corporation announced that a $14,518,778 million retrospective return for the 700 companies participating in the 2007–2008 AGC/SAIF group workers’ compensation program. This represents a 34 percent return of paid premiums during the policy year, and is the largest retro return paid in the group’s 17 year retro payout history. The actual payout to participants will surpass $16 million after the Department of Consumer and Business Services (DCBS) and non-disabling claim reimbursement adjustments are made.
Title: From Nothing to Best Practice: Establishment of an Ergonomics Program for HTSI-COS
Author: Keith Osborne
Publisher: ASSE Ergonomics Practice Specialty
Summary: The author explains how Honeywell Technology Solutions Inc.-Colorado Springs improved not only its safety program, but also its ergonomics program and health and wellness initiatives.
Resource: Keith Osborne Article
Title: Plain English Leads to Savings & Safety Compliance
Author: Linda Richardson
Publisher: ASSE Consultants Practice Specialty
Summary: Today's business climate is all about decreasing costs while increasing profitability. Proactively including Plain English writing in your training will positively impact your bottom line and cash flow.
Resource: Linda Richardson Article
Title: Getting a Return on Wellness
Author: Joanne Sammer
Publisher: Business Finance
Summary: You need not be a Fortune 500 company with a million-dollar budget to take steps to improve the wellness of your workforce.
Resource: Joanne Sammer Article
Title: The Savings in Safety
Author: Christian D. Malesic
Summary: Safety is thought of as a “compassion issue” or a “workplace environment improvement.” The care and consideration placed on safety issues by management are seen as an indicator of attention to detail and teamwork. Safety is all of those things, but it is also "profit center" that should be monitored by management.
Resource: Christian Malesic Article
(This article is from the May/June 2011 issue of Insights magazine. It is reprinted with the permission of the Independent Electrical Contractors, Inc. (IEC).)
Title: Ergonomics Investment: Making the Case in Any Economy
Summary: Several best practices can be used to demonstrate the economic value of ergonomics as a cost-saving, productivity-enhancing tool that contributes significantly to a company's bottom line.
Resource: Ergonomics Investment: Making the Case in Any Economy (PDF)
Title: Building a Case to Invest in OHS and Organizational Health (2009)
Publisher: Australian Government Comcare
Summary: This publication outlines the elements of organizational health and the benefits employers can expect to receive from investing in organizational health initiatives.
Title: The Business Case for Safety – Justifying an Investment in Ergonomics, Part 1 of 2 (2006)
Publisher: Glenn Demby (Author)
Summary: This article provides a strategy for safety professionals to financially justify an investment in ergonomic equipment to their CEO’s.
Resource: ASSE - THE BUSINESS CASE FOR SAFETY Justifying an Investment in Ergonomics (MS Word)
Title: Making the Business Case for Ergonomics (2006)
Publisher: Dan Bloswick, PhD, P.E., CSP
Summary: Presents information for safety professionals to utilize in order to justify ergonomic investments to their company’s senior management.
Resource: Making a Business Case for Ergonomics
Title: Where’s My Return? Many Safety investments Won’t Show Financial Gain (2005)
Summary: Safety and health professionals once felt secure justifying expenditures and investments in terms of OSHA compliance and reducing injury and illness. But many now find themselves confronted with the phrase “make the business case” when arguing the need for funding. What happened?
Resource: Where’s my return? Many safety investments won’t show financial gain.
Title: The ROI of Safety and the Business Leaders Who Get It! (2005)
Publisher: National Safety Council
Summary: A Business Week section in 2005 addressed the business case for safety, the financial impact of both on and off-the-job, and the emerging safety and health issues confronting a 21st century global workplace.
Resource: "The ROI of Safety and Business Leaders Who Get It" (PDF)
Title: White Paper Addressing the Return on Investment for Safety, Health, and Environmental SH&E Management Programs (2002)
Summary: ASSE Council on Practices and Standards provides a position statement about return on investment for SH&E Management Programs
Title: Technical Report: ROI & Annual Reports
Summary: This white paper determines if businesses in the U.S. annually report their return on investment (ROI) in occupational SH&E management. It also identifies different methods that American businesses use to report their investment strategies.