3 Ways Effective Safety Management Makes Your Business More Profitable
A good safety management program for your business not only makes you a good citizen, it also makes your business more profitable.
Safety management is a business process that identifies and mitigates extant safety threats within a company. It’s a proactive aspect of risk management that minimizes, as much as possible, potential hazards.
Often times, business will utilize a formal safety management system (SMS). This is an effort to minimize risk that entails the usual management components: setting goals, assessing performance, and post-mortem analysis.
Safety management is most important from an ethical standpoint. However, it also carries the benefit of making a business more profitable.
Here are 3 ways that safety management makes a business more profitable.
1. Employees Will Have Better Morale
As a rule of thumb, anything that improves employee morale is going to also improve their productivity. If your employees know that precautions have been put in place to ensure their safety, they will have peace of mind about their work environment. With that, employees are much more likely to give 100% of their effort to the work they do. On the other hand, anxious employees are often unfocused as they may worry about concerns such as hazardous working conditions. Help your employees become more productive by practicing good safety management.
2. You Will Avoid OSHA Citations
It is wise to have good safety management in place if your work environment is subject to inspection by the Occupational Safety and Health Administration (OSHA). Otherwise, OSHA could slap your business with a citation and a fine. Obviously, that fine will eat into your bottom line. Instead of allowing that to happen, practice a healthy amount of preventative maintenance by ensuring safe working conditions for you and your employees.
3. It Will Reduce Workers’ Compensation Claims
It’s a foregone conclusion that a safe working environment reduces the risk of workplace injuries. The fewer workplace injuries there are, the fewer claims for workers’ compensation. That is good for your bottom line.
How is that good for your bottom line? Because your workers’ compensation premiums are tied to the number of claims filed by your employees. As a result, if you have a lot of employees who file for workers’ compensation, you’ll find that your insurance premiums go up a lot more than if none of your employees go injured on the job. Those higher premiums will take a chunk out of your profits.
Safety management may seem tedious, expensive, and time-consuming. However, a good safety management program not only ensures that you’re taking care of the people who work for you, in the end, it also means your company will be more profitable.