Workplace safety, especially fall protection, is crucial for any company’s success. Not only does it protect employees from harm, but it also has direct impacts on a company’s profits. We will explore three ways safety can positively influence your company’s financial success.
OSHA (Occupational Safety and Health Administration) violations can have significant financial implications for businesses. In recent years, OSHA has issued numerous citations for Fall Protection General Requirements, which highlights the importance of compliance in this critical area. In 2021 alone, fall protection violations surpassed $29 million (OHSA Top 10 Safety Violations: What They Cost In 2021). Failing to meet safety regulations can result in hefty fines, legal fees, and increased insurance premiums, draining your company’s financial resources.
More Resources: Top 10 Most Frequently Cited Standards
OSHA’s maximum penalties for serious and other-than-serious violations will increase from $14,502 per violation to $15,625 per violation. The maximum penalty for willful or repeated violations will increase from $145,027 per violation to $156,259 per violation. (OSHA)
Not only do OSHA violations cost money, but they also consume valuable time and resources. Ongoing investigations and corrective actions can halt progress causing companies to lose hours of labor, leading to reduced productivity and profitability.
Moreover, workplace accidents due to safety lapses can result in employee injuries or even fatalities. Beyond moral responsibility, this can lead to increased workers’ compensation claims and potential lawsuits. Losing skilled employees due to accidents not only affects morale but also leads to recruitment and training costs for new hires.
Having a solid safety record is not only essential for avoiding financial losses but also a key factor in winning lucrative contracts. One of the critical metrics that contractors evaluate is the Experience Modification Rate (EMR) for prospective companies. EMR is a number used by insurance companies to assess a company’s past workers’ compensation claims and risk profile.
Companies with a low EMR are seen as safer and less likely to have workplace accidents. This perception gives them a competitive advantage when bidding for construction projects, as reputable contractors prefer to work with safe and reliable partners. By prioritizing safety, your company can position itself for higher-profile projects that offer better financial rewards.
Damian Lang, CEO of Malta Dynamics, and Construction Executive for nearly 40 years encourages companies to value consistently safe work to achieve business success. “Our three promises at my contracting and masonry companies are Safety, Quality, and Production. We are adamant we perform our work in that order. Our teams know we will not sacrifice safety for quality, or quality for production.” With the implementation of a good safety program your company is more likely to acquire a good safety record.
OSHA Safety Pays Program raises awareness of how occupational injuries and illnesses can impact a company’s profitability. The program features tools to help employers estimate costs from workplace injuries. The Safety Pays Tool uses data to allow companies to compare their safety record to others in the industry. With this tool and related resources, the program demonstrates the value of implementing workplace safety programs to keep employees safe and lower work-related injuries costs.
Resource: OSHA Safety Pays Program
Workplace safety and employee performance go hand in hand. Employees who are safety-conscious tend to be more engaged and dedicated to their jobs. They understand the value of safety measures and are more likely to follow established protocols, leading to fewer accidents and better overall job performance.
Safety-conscious workers are also more likely to have good attendance records, reducing the cost of absenteeism and maintaining productivity levels. Their commitment to safety often translates into a higher level of care and attention to detail in their work, minimizing errors and costly rework. As an employer, correctly outfitting your workers directly links to their success on a job.
“When my safety managers test-fit our workers for the right size harness, and hand them one that is not the cheapest on the shelf, but the one best-suited for their work, and give them the training and knowledge to be successful in safety, quality, and production, then your front-line workers are advocates for safety and produce high-quality work.”
-Damian Lang, CEO and Construction Executive
More from Malta Dynamics: Stay in business by focusing on safety
Prioritizing workplace safety, particularly fall protection, is not just a legal obligation but a smart financial investment. OSHA violations can lead to costly penalties, time-consuming investigations, and potential employee losses. Conversely, companies with good safety records are better positioned to secure lucrative contracts, boosting their revenue prospects. Safe employees are more likely to exhibit good job performance, attendance, and a positive attitude, contributing to increased productivity and cost savings. Embracing safety as a core value ultimately enhances a company’s reputation, profitability, and long-term success.
Langford, James. “OSHA’s Top 10 Safety Violations: What They Cost In 2021.” MSC, 14 Apr. 2022, https://www.mscdirect.com/betterMRO/osha-top-10-safety-violations-2021.
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