Understanding the value of return on prevention
An international study with 300 participants in 15 countries demonstrates how safety solutions payoff at a cost-benefit ratio of 1:2.2. On the micro-economics level, investments in workplace safety enable you to return $2.20 on every single dollar spent on workplace prevention per employee per year. Return on prevention is the key indicator for gauging the economic performance of investments in safety.
What’s your return on prevention?
Disruptions and stoppages on site and time wasted catching up afterwards factor into costs. Worse still, in the short term or the long term your business is likely to suffer the direct and indirect effects of reduced productivity while replacement workers are trained up, loss of company image, additional administrative outlay, lack of customer satisfaction, completion delays, higher insurance contributions and much more.
But look again, and there is a lot of sustained potential for saving money. Add up your investment in prevention, including personal protective equipment, a safe workplace and safe-practice training, and compare that figure with safety savings (e.g. on avoiding stoppages and disruptions) and see how much your bottom line benefits from your workplace prevention strategy.
Room for improvement?
If you aren’t there yet, Doka’s safety solutions can help you boost your return on prevention in many ways, with a wide range of safety products and services, and also with great know-how combined with an understanding of your specific savings potential.