Savings on Business Expenditures Through Security

Business cost savings through security

Implementing a health and safety program reduces costs. A program would reduce accidents and lower the compensation premiums of the company’s workers; More and more business insurance companies prefer health and safety programs for their customers. These insurance companies can even reduce the premium if it can be shown that a program exists. The average cost of an accident is $68,000. Direct costs of an accident such as work injury and fines can result in the closure of a business. Indirect costs like low employee morale, legal fees, and retraining can be just as expensive, if not more.

A work program will:

1. Boost employee morale – Show concern for their well-being
2. Reduce Loss of Income – Fewer accidents keep all employees in the workplace
3. Encourage customers – Ensuring the business is performing at its best

According to OHSA statistics, small businesses with voluntary health and safety programs have fifty percent fewer accidents and report insurance claims than their peers. Most small businesses are required by law to have a formal health and safety program due to the number of employees. 68 percent of reported accidents occur in the service industry, showing that businesses like retail are not accident-free either.

A health and safety program can be started by writing a health and safety policy; these are just the values that the company wants to convey in its work process. Second, how communication between all employees and owners will work. And finally, implement procedures to ensure safe practices.

To find hidden dangers and unsafe practices, audits must be conducted. Pay close attention to the workplace and note all factors that can lead to injury. This hazard can be a dangerous chemical or as simple as a letter opener. Identification of these hazards leads to procedures for their control. Controls such as “Don’t walk with scissors in hand” are effective. Write all procedures in the manual.

Implementing these health and safety procedures requires behavioral change. Some programs are weak and ineffective because:

1. No definition of safety practice – No written process
2. No Teamwork – Security is top-down communication and vice versa. A well-written plan describes the role that everyone plays in security policy.
3. No effective targets – “No Accident Day” posters will appear as a result of good safety processes.
4. Wrong incentives – Money as a gift doesn’t work well. Health and safety should be fun and equal to employee.

effort. The right incentive plan can be inexpensive and have achievable goals. Incentive packages can include movie tickets or simply “free coffee for the boss”. The insurance industry reports that one dollar spent on health and safety yields four to six dollars in savings.

After all the hard work of developing and implementing a health and safety program, take time each month to review the workplace. Note what is found; It’s good practice to spot potentially dangerous trends like permanently blocked emergency exits. Postmeeting with employees in this year’s quarter. These meetings are a great way to get important feedback from employees and motivate them. Conduct an audit at least annually to ensure your health and safety program is consistent with current business operations.