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Safety Pays: Numbers Made Simple

F Marie Athey OHST

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F Marie Athey OHST | June 29, 2015 | Comments Off on Safety Pays: Numbers Made Simple

Safety Pays Program

Businesses are undoubtedly in the business of making money. On-the-job accidents, injuries, and illnesses cost companies big bucks. The solution? Reduce injury rates by incorporating safety programs into the workplace. If you are struggling with getting your company to commit to occupational safety training, check out these facts. By looking at how much your lack of safety programs is costing your company, you can encourage your employer to take safety training much more seriously.

Preventing On-the-Job Dangers

If you are working in a blue-collar industry, such as construction, mining or trucking, you can take OSHA to the bank when it comes to predicting what kind of accidents, illnesses, and injuries will affect employees. Consider the most cited workplace violations as reported by OSHA for fiscal 2014:

  • Top 1 – Fall Protection
  • Top 2 – Hazard Communication
  • Top 3 – Scaffolding
  • Top 4 – Respiratory Protection
  • Top 5 – Powered Industrial Trucks
  • Top 6 – Lockout and Tagout
  • Top 7 – Ladders
  • Top 8 – Electrical Wiring Methods
  • Top 9 – Machine Guarding
  • Top 10 – Electrical (General Requirements)

If your company is involved in any of these activities, sit down with your boss and note how many related accidents have occurred in the past year. In doing so, you can point out that OSHA has options that will help your employer cut the costs associated with these incidents. How much are these accidents costing your company?

The Dollars Game

According to statistics, when there is an accident on a job site, it costs:

  • $3 to $5 spent for costs indirectly related to the accident for every $1 cost by the accident

For example, if the accident costs your company $1,000, go ahead and tack on $3,000 to $5,000 in addition to that—for a total cost of $4,000 to $6,000. That is quite a jump from the expected amount. These indirect costs easily add up due to workplace citations, downtime for all workers as the accident is addressed, hiring or replacing a substitute worker, and managing the paperwork associated with the accident. You are also looking at paying for unexpected costs due to repairing machinery or handling the recovery of the injured employee. Furthermore, in the scheme of things, the overall amount lost by businesses across the nation is a staggering $43 billion, according to H&S Hub. Fortunately, there is a way to reduce these costs—by taking preventative measures into consideration.

OSHA’s Safety Pays Program

OSHA understands that the time spent up front on establishing safety training programs is a hassle for many companies. After all, this time cuts into productivity and earnings. However, just as with preventative care provided to you by a medical doctor, a good safety program helps you reduce accidents and illnesses down the line, saving you even more money in the long run. Preventing accidents will save you much more money than dealing with them when they happen. To encourage positive behavior in regards to safety training, OSHA has established the Safety Pays Program. Highlights of the SPP include:

  • Choosing among the injury types listed or manually enter your workers’ comp costs into an analyzer
  • Create a profit margin analysis that is based on the number of injuries sustained by your workers
  • Generate a printable report featuring the costs of on the job injuries, and the needed revenue increase in order to cover these costs

This program allows you to take the facts and figures as calculated by OSHA and present them in an easy-to-interpret manner to your employer. By showing them the true impact of a lack of safety training, you will hopefully be able to encourage your boss on the benefits of establishing ongoing safety training. Visit for more details!

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