Impact of Safety Management on Business Profitability

Providing a safe and secure work environment for the employees to work in is a legal and moral obligation for every business in the United States, but it is also directly related to business profitability. While it may seem counterintuitive at first, take note of the following to understand how efficient safety management can actually boost a business’s profitability.

Morale and Reputation:

In business, reputation is everything, and that’s not restricted to only customer/client relations either. A company can only be as good as the employees it hires, and unless your company has a good reputation for something as basic as safety, it is very unlikely that skilled and experienced workers would be willing to join the organization and risk their wellbeing.

On the other hand, frequent accidents and injuries are bound to bring employee morale down because they won’t feel safe at work anymore. One cannot really expect their workers to perform if they are constantly worried about their safety every time they come to work! Without the necessary morale, a workforce will invariably become less productive and they will constantly be looking for better and safer opportunities elsewhere. Both loss of reputation and morale fuel each other, stunting the company’s growth and productivity in general.

Avoiding Fines:

Organizations have lost tens of millions of dollars in the United States for not complying with the Occupational Safety and Health Administration (OSHA) rules and regulations. Needless to say, hefty fines for noncompliance with the set safety standards can not only harm the profits but can potentially bankrupt smaller organizations as well.  To help companies avoid such situations, Stronghold Safety Engineering offers risk assessment services to determine the potential health and safety hazards in a workplace, so that the organization can opt for the right industrial safety equipment that’s necessary to provide a safe, productive and compliant work environment to their workers.

Avoiding Compensation Claims:

Each time an employee gets injured while working for you, it leaves your company open to compensation claims and lawsuits, which can take huge chunks out of the profit margins, especially if they keep happening over and over again. Now, you probably have worker’s compensation insurance, but did you know that if there are too many claims within a short time, the insurance company will raise your premium significantly? As this would once again cut into the company’s profits, it’s just better to invest money into securing your workplace instead.

Aside from these three points, it is also mostly about applying common sense. A workplace which makes employees feel safe is one where they feel valued, and they are therefore more likely to perform and commit. Also, each and every time someone gets injured at work, the company is losing out on productivity, further adding to the overall expenses. To prevent all this, invest in the necessary safety checkups, assessments, equipment, training, etc. and the results may surprise you quite a bit after some time.

Read Also:

• Top 7 Benefits of Hiring a Private Waste Management Company for Your Business
• How to Boost Your Employee Morale with Corporate Events in the Workplace