How Safety Management Affects Profitability

safety management system

One of the most factors that keep businesses in the black in expense control. When an employee gets injured on the job, the company or business ends up paying considerable amount of money for unplanned expenses, which can in some cases lead to affecting its ability to perform and survive.  A recent Canadian study found that small businesses with high injury rates fail sooner than those with better safety records. That’s why a safety management system is usually conidered an effective cost-control tool to keep risk to a minimum, and maintain profitability.

Increased Insurance Premiums

Safety regulations in most states make workers compensation insurance mandatory for employers with at least one employee who’s not the owner. And even though such insurance covers the employees medical expenses, rehabilitation and a portion of wages lost due to any work-related accidents, businesses will have to buy it with premiums tied to their safety history, i.e. the more workplace injuries, the higher the premiums. They also often pay for uncovered medical expenses out of pocket. Safe Work Australia estimates that direct workers’ compensation expenses costs AU employers nearly $6.5 billion each year.

Indirect Costs of Workplace Accidents

Direct safety costs such as workers’ compensation and medical bills pale when compared to the indirect costs a business pays after an on-the-job accident. According to the American Society of Safety Engineers, businesses pay more than $2 in indirect expenses for every dollar paid for direct costs. The biggest category of indirect expense relates to payroll. A workplace accident may mean hiring and training a replacement, paying overtime and paying any wages and benefits workers’ compensation doesn’t cover. Increased payroll costs can add up quickly: The U.S. Bureau of Labor Statistics reports absences last a median of eight days. Management and staff time diverted to accident-related administration tasks also adds to indirect compensation expense.

The Cost of Downtime

And if direct and indirect costs of workplace injuries are not enough, businesses also have to account for the cost of downtime due to workplace accidents. When an accident happens, work has to be stopped immediately, the accident must be investigated, corrections need to be made immediately, and any damaged property or equipment must be repaired and supplies or raw materials replaced before work can resume. The resulting drop in productivity can cause delivery and scheduling delays that damage customer relations or sales — additional indirect costs that impact profits. Worker distraction may hinder your team’s ability to achieve normal production levels quickly, as can accommodating the injured worker upon return.

The Indirect Benefits Of a Safe Workplace

Safety management offers profitability-guarding benefits. Don O’Neal, safety manager at a 116-employee business in Florida, told the Jacksonville Business Journal in a 2010 article that his safety program raised employee morale and made them more productive. Clients may require evidence of safety training and workers’ compensation coverage in their contracts. According to OSHA, businesses with the reputation for being safety-conscious business earn “better places to work” ratings that make attracting job candidates easier and reduce recruitment costs. Finally, putting safety first enhances a business’s standing in the community and generates positive publicity, factors that contribute to customer confidence.

Connect With Your Workforce With Better Health and Safety Software

Finding an Appropriate Health and Safety Software for Your Organization

Modern Health, Safety and Environment (HSE) practices are currently the best they have ever been. Unlike in the past, most people today know about workplace safety. It is also easy to create and manage a safe workplace with the aid of all the professional Health and Safety support systems that are in place, in conjunction with the many software solutions that are available to us.

Not only is a Health and Safety Software a central part of today’s HSE management systems, using an appropriate Health and Safety Software helps a company connect with its employees better. Most organizations have implemented a Health and Safety Software system to create a safer workplace. Those that haven’t are actively searching for an appropriate software solution.

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The Process Of Obtaining Effective Safety Software

Three Proven Steps to Finding an Effective yet Affordable Safety Software Package

No matter how large or how small your company is, safety software is a valuable investment for managing environmental impact. With the increased awareness of the importance of environmental health and safety standards, most companies have implemented safety software systems to reduce their carbon footprint by operating in a greener and safer way. One major issue companies have to deal with before investing in safety software is justifying the cost of the investment.

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All About Health and Safety Training Courses

Everything You Need To Know About Health and Safety Training Courses

Business owners, managers and employees have one goal in common: to promote Health and Safety in the workplace. To minimize injuries and accidents in the workplace, the use of Health and Safety Training Courses is essential.

Safety training brings personal benefits to all participants and to the company as a whole. Most countries require companies to subject their employees to health and safety training. The completion of health and safety training courses helps to create a positive work environment and minimize accidents. For the company, this training prevents injuries, sicknesses, accidents and health hazards related expenses and liability costs.

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Health and Safety Training

The Health and Safety Training, Risk Assessment and Other Functions of Safety Consultants

Beakon offers Safety Services & Consultancy, Occupational Health and Safety services and evaluations. Our Safety Management System is designed to compliment your Health and Safety Training and provide you with the tools ensure that your workplace remains safe and free of harm

Our Safety Management System’s functions include:

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Improving Health and Safety Training Software

Improving Safety Training by using Safety Software and Involving Managers and Supervisors In The Training Process

An effective way to reduce occupational accidents is to equip workers with job safety skills and knowledge through health and safety training in order to achieve a safe work environment. For the health and safety training to be effective, the managers and supervisors should be involved as well. The top management initiates workplace safety by authorizing resources to support the initiative. The company can contract training providers where employees have to attend the training sessions. This requires a schedule adjustment to create time for employees to attend the classes. A more convenient option that does not require interrupting of the work schedule is to take online Beakon safety training courses.

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