Perspectives: Worker morale, well-being starts with safety

In challenging economic times, many companies are faced with very tough choices about where to allocate their limited resources. One area that is often cut back on when the budget is tight is workplace safety and/or loss control programs. However, this can lead to unintended consequences when you consider the economic impact of workplace accidents. 

The National Safety Council reports that the economy lost $163.9 billion in 2020 due to the direct and indirect costs associated with workplace injuries. That makes the average cost per medically consulted injury roughly $44,000. The good news is that the risk of workplace injuries can be reduced. Rather than cutting back on workplace safety and/or loss control programs when they are needed most, strategically investing in these programs can provide employers with significant benefits, both in the short and long term.

Most obviously, investing in a strong safety program can help prevent workplace accidents and injuries. This not only protects employees from harm, but it can also potentially save the company money by reducing workers compensation claims, insurance premiums and medical costs. A strong safety program can also cut down on costs associated with lost productivity due to employees being away from work, not to mention the additional time needed to train employees on new tasks to replace an injured worker. According to the Society for Human Resource Management, the average cost to recruit a new employee is nearly $4,700, with the full hiring process costing many times that.

Beyond protecting employees and reducing costs, investing in safety programs can also help companies comply with Occupational Safety and Health Administration and various state regulations, avoiding costly fines and/or compliance-related legal action. Safety rules, regulations and guidelines are constantly evolving, so it is important for companies to stay informed, ensure they are in compliance and have well-documented processes. Using the free expertise and resources available from their workers compensation insurer is a great place for businesses to start. 

Companies can also benefit from partnering with safety organizations and experts from OSHA and NSC to stay current on the latest safety best practices and regulations and gain valuable insights and resources for improving safety programs and ensuring compliance. For example, OSHA offers free on-site consultations to small and medium-sized businesses, and the National Safety Council offers free educational webinars, toolkits and posters to assist with safety training. 

Internally, safety programs can help improve employee morale and productivity. When employees feel safe and supported in the workplace, they are more likely to be engaged and motivated to perform their best. This can result in higher-quality work, better customer service, less absenteeism and, ultimately, increased profitability for the company.

According to AlertMedia’s 2023 State of Employee Safety Report, 81% of respondents believe physical safety is important in the workplace, while 71% of employees don’t think their employers are following through on safety promises. This indicates a gap between how important workers consider safety and how many of them perceive that their employers prioritize it. With 46% of respondents saying they are more likely to stay with an employer that genuinely cares about their safety, business owners should take note of how important the feeling of safety in the workplace is for employee retention.

Another important element of a strong safety program is providing safety training for employees. This can include training on safety and emergency procedures, hazard identification and reporting, housekeeping and sanitation, and just about any topic relevant to the business’ operations. The key to an effective training program is operationalizing safety – by incorporating safety training into the day-to-day business, rather than something that only happens once a year. 

This approach to safety training can lead to a host of positive outcomes. It shows employees that safety is a priority for the business, as opposed to something that gets in the way of productivity. It also provides a kind of “drip irrigation” system of safety awareness, so that employees aren’t expected to remember that one item from the eight-hour vendor-supplied safety training class nine months ago. Lastly, and I believe most importantly, it works to create an atmosphere of interdependence, where employees begin to look out for one another and are more likely to report unsafe behaviors. It becomes the language of the workplace.

Investing in safety involves more than just policies and procedures, it’s also about creating a safety culture within the company. This means promoting safety as a core value and encouraging employees to incorporate safety into their daily activities. A strong, positive safety culture can lead to greater engagement and ownership among employees, which can further improve business outcomes. 

Finally, it is important for companies to regularly evaluate the effectiveness of their safety programs and make necessary adjustments. This can involve analyzing safety and accident data, soliciting regular feedback from employees and conducting real-time safety observations. By continually improving their safety programs, companies can ensure that they are providing the best possible protection for their employees, learning from their dynamic, ever-changing workplaces and maximizing their return on investment in safety.

In conclusion, investing in safety programs is a wise choice for companies, even in challenging economic times. There is a large body of evidence making a very strong business case for safety and health in the workplace and employees want an employer that cares about their safety and well-being. By working to prevent workplace accidents and injuries, complying with regulations, engaging employees early and often, and building a strong, resilient culture, companies can reap significant benefits from these investments over time. It is important for companies to view safety as an integral part of their business strategy and prioritize it accordingly.

Dan Killins is director, risk advisory services, for Employers Holdings Inc., which offers workers compensation insurance and services. He is based in Orlando, Florida, and can be reached at [email protected].