How Workplace Safety Can Save Your Business Money

You may not realize it, but a safe workplace can lead to a decrease in business expenses. Something as simple as installing a security system or video surveillance equipment can save your business money on your insurance premiums, as well as reduce the risk of having to replace items that are damaged or stolen in the event of a break-in. If your business features adequate security systems, your insurance provider may lower your premium if they believe there is a lower risk of theft or break-in at your business. While it might be an initial expense to upgrade or install a new security system for your office, the amount of money you’ll save as a result of lowered premiums will help you recoup the costs associated with installing the security system.

Many business owners often focus on keeping their business structure safe from theft and burglary but don’t spend enough time making sure workplaces are safe from the inside out. Giving workplace safety the same level of importance as installing a security system or locking your office doors at night can not only prevent workplace injuries, but can also lead to workers’ compensation savings.

One of the easiest ways to reduce workplace injuries is to implement general safety programs aimed at preventing workplace injury and illness. Through management leadership; employee participation; hazard identification and prevention; and education and training, the Occupational Safety and Health Administration believes businesses can greatly reduce the amount of injuries that occur at workplaces each year.

Liberty Mutual Group Inc. recently released research that identified the five leading causes of workplace injuries. The biggest cause of workplace injuries is overexertion, caused by pulling, holding, carrying, pushing, or lifting items that are too large or weigh too much. These injuries cost businesses nearly $13 billion in direct expenses each year, accounting for a quarter of the workplace injuries that occur annually. Holding injury prevention seminars at your business, even if you doubt these sorts of injuries might occur at your workplace, is an easy way to reduce the likelihood this type of injury can happen to one of your employees.

Aside from not having to pay these direct workers’ comp related expenses, preventing injuries in your workforce can save you additional expenses. OSHA did an internal study of nine small businesses, ranging in size from 15 to 160 employees, over the course of 12 years. OSHA discovered the firms that implemented injury and illness prevention programs experienced the following business savings:

  • Decrease in workers’ compensation insurance premiums
  • Reduction in human resources and administrative resources associated with filing illness and injury reports
  • Less money spent on managing workers’ comp cases
  • Fewer resources spent training new employees to replace injured workers who were missing work

Taking a few precautions to ensure your workplace is safe from the inside out can provide additional benefits other than saving your business money. OSHA discovered limiting workplace injuries and increasing workplace safety is beneficial as it increased workplace productivity and quality; reduced employee turnover; and led to greater employee satisfaction. So consider implementing workplace safety measures to help your business realize all these benefits and more.

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