ICW Group mySafetyNews.com
Printed from www.mysafetynews.com - Your Risk Management Resource

Risk management blog

Money Spent is Money Saved

- June 7, 2018 by Leslie Stoll, CSP, ARM (View all posts by Leslie)

Company safety managers, human resources managers, and plant managers often have the responsibility of implementing safety programs and controls. Unfortunately, with many industries suddenly finding themselves back in a growth mode, it can be difficult to find financial backing for safety improvements when all the money is being set aside for capital projects. It can also be hard to find time to make important safety improvements when people are so busy with growth that they can barely get the current safety expectations completed. For those who are facing a tight budget with time and money, I’ve listed some key arguments to get management interested in investing in safety.

Spending money on safety can save the Company money on…

  • OSHA fines. OSHA fines  can be costly. If you are not up to date on your OSHA news, you may not know that the cost of a serious citation increased from $7,000 to $12,600. With inflation, the fine increased in 2018 to $12,934 per violation. And don’t forget, per violation means for each occurrence, so if you have three eyewash stations that are not properly functioning that’s 3x#12934 = $38,802!
  • Profit Margins.  These can be used to your benefit. There are many uninsured costs of an accident such as the cost to repair machinery, the cost to replace the employee, and other administrative costs. OSHA has an application on their website called $afetypays that can help you estimate the costs related to accidents (insurable and uninsurable) and it factors in profit margins.
  • Experience Mod. Fewer claims equal fewer days away from work and lower claims costs. This can reduce your experience modification rate which directly affects the cost of your workers compensation insurance premium. If you need more explanation on ex mod and how it affects your rates, please reach out to your insurance agent or your ICW Group Risk Management Consultant.
  • Morale. Low morale among employees can be very costly. If a workforce believes that safety is an afterthought and low on the priority list, they are much more likely to obtain an attorney after an injury and/or report a company to OSHA. By improving safety efforts, you will improve morale which often leads to a natural increase in production efficiency. I know I work harder when I believe my supervisor cares about my well-being.

Remember, you have to invest in safety to improve safety. Help your company grow profitably. Money and time spent now is money and time saved in the long run.