According to the Occupational Safety and Health Administration (OSHA), workplaces that establish safety and health management systems can reduce their injury and illness costs by 20- to 40 percent. Safe environments also improve employee morale which positively impacts productivity and service. When it comes to the costs associated with safety, consider the following statistics from OSHA:

U.S. employers pay almost $1 billion per week for direct workers’ compensation costs alone, which comes straight out of company profits.

Injuries and illnesses increase workers’ compensation and retraining costs.

Lost productivity from injuries and illnesses costs companies roughly $63 billion each year.

As many Pawnbrokers may be aware, OSHA has made their presence known within the industry by fining operations for safety violations. In today’s environment, these safety-related costs can be the difference between reporting a profit or a loss. If it is important for your organization to measure safety as it relates to profitability, more accurate tracking should be done.

OSHA studies indicate that for every $1 invested in effective safety programs, you can save $4 to $6 as illnesses, injuries and fatalities decline. With a good safety program in place, your costs will naturally decrease. It is important to determine what costs to measure to establish benchmarks, which can then be used to demonstrate the value of safety over time. 

Also, keep in mind that your total cost of safety is just one part of managing your total cost of risk. When safety is managed and monitored, it can also help drive down your total cost of risk.

Considering the statistics, safety experts believe that there is direct correlation between safety and a company’s profit. We, at Marshall & Sterling, Inc. are committed to helping you establish a strong safety, health and environmental program that protects both your workers and your bottom line.