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Safety Management Insights

Where to Find Safety ROI

Posted by Doug Shoemaker on Aug 20, 2019 6:09:51 PM
3wayssafetyROI

 

Most safety manager have a lot of data to work with. Although it may be cumbersome, this data is the key to learning how much return you are getting by investing in safety.

Here are 3 places you can find evidence of a true ROI or return on investment.

 

1. Amount of Lost Time

If the amount of lost time your company experiences is going down you are getting a higher return!

Look at your current DART, DAFW, and DJTR compared to last year to determine how much less time was lost.

If you know how much value (in dollars) each hour of employee labor is worth you can begin to see exactly how much return you got this year.

 

2. Lower insurance costs

Measuring insurance costs gives you some very direct numbers associated with your safety ROI.

Generally, these take around 3 years to change BUT you can look at your costs associated with Workers comp on a year to year basis to show savings.

For example: If you spend $40,000 less on comp and $10,000 more on safety measures then you can show a 4:1 ROI.

 

3. Better safety culture

Out of the 3 this is the most subjective but it is still worth mentioning.

Most companies understand at this point that better safety culture means higher morale, and higher morale means higher productivity.

The way you can measure this is by checking participation rates in training, behavior observations, and just general willingness to participate in safety or communicate about workplace safety.

You will also want to watch production rates at your company, most likely an improvement in one will mirror an improvement in the other.

You can then use the production value numbers to calculate a rough ROI.

Now, if you are looking for a better way to measure the ROI of your safety program, I highly recommend looking into safety management software like BasicSafe that can provide this type of data (and more) directly to you!

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