Most profitable companies know that having an effective injury and illness prevention program provides multiple benefits to their organization. Although many aren’t yet aware that there are prevention programs that can make their organization virtually injury free. But most realize that it’s just good business and is a win-win for everyone involved.
There are many companies, however, that may be struggling with profitability and view IIPPs as a cost they simply can’t afford. What these companies may not be aware of is that there are a range of options from low-cost solutions to state-of-the-art programs that can help them not only become a safe place to work but contribute to their profitability.
A Safe Company is a Profitable One
A 12-year study by the Ohio Bureau of Workers Compensation revealed businesses in OSHA’s SHARP program experienced a 52% decrease in the number of claims filed, an 80% decrease in claim costs, an 87% decrease in lost time per claim, and an 88% decrease in claims per million dollars of payroll.
An OSHA study revealed that, in addition to injury reductions and improved compliance, safety and health programs contribute many benefits to a business such as:
- Reduced Workers Compensation premiums
- Reduced administrative and human resource costs associated with filing injury claims and managing injured workers.
- Reduced recruiting, hiring, and training costs of replacement employees.
- Reduced downtime, improved efficiencies, and greater productivity.
- Improved morale and teamwork leading to collective responsibility for each other’s health and safety.
- Improved reputation in the business community and a positive employer brand.
A Risk Management Tool
BASuccessful businesses know that to become successful, management must be comfortable in managing risk. And an effective injury and illness prevention program should be designed with potential risk in mind. Business disruptions due to employee injuries can be more expensive than just the cost of a claim and the associated administrative costs. It can result in an order not being shipped and the loss of an important customer, higher business insurance premiums, uncompetitive product costs, public notification of fines and penalties, and a negative reputation in your industry. It can also be a problem for potential investors or in obtaining financing.
It is much easier, takes fewer resources, and is less expensive to prevent injuries than it is to respond to injuries after the fact. Injury and illness prevention programs can be adapted to the needs of an organization based on company values and the potential risk involved.