Workplace safety not only protects your employees, but it also protects your wallet. Accidents are expensive. Worker’s compensation and other expenses can start to add up. There are many financial benefits to investing in proper safety equipment.

What is the Return on Investment for Workplace Safety Equipment?

Workplace safety not only protects your employees, but it also protects your wallet. Accidents are expensive. Worker’s compensation and other expenses can start to add up. Not to mention the fact that an accident probably means you’re going to lose an employee for some time. 

There are many financial benefits to investing in proper safety equipment. Sometimes, equipment can even save you money in ways you might not expect. For example, a lot of safety equipment can serve multiple purposes at once. Something used as a sound barrier may also be able to lower energy costs. In the long run, there is a pretty high return on investment for workplace safety equipment. 

Safety ROI

ROI stands for Return on Investment. It’s a very common abbreviation in business. ROI is used to measure how successful an investment is. In simplest terms, it tells you how much profit you made from an investment. For unsuccessful investments, it can be used to calculate how much money is lost on an investment. 

The ROI for safety equipment is usually very high. Accidents and hazards can be very expensive, so it makes sense that investing in safety equipment has a high return. Calculating the return on investment is straightforward. The most common formula is (profit-cost)/cost. Using this formula, you can quickly calculate a decimal or percentage for your ROI. 

OSHA calculates that businesses receive about five or six dollars for every dollar they spend on safety equipment. This means that safety equipment earns about five times its cost. While a good ROI is subjective, this is a pretty high number. In other words, investing in safety equipment pays for itself almost five times over!

When you think about it, this makes a lot of sense. Workplace hazards are expensive. OSHA estimates that many employers paid more than a billion dollars a week in worker’s compensation. Additionally, injured workers aren’t able to work, slowing down production. Often, workplace accidents involve machinery or equipment as well. This means not only can a minor accident at work set you back by one worker, but you might lose vital equipment too. In other words, it pays to be safe. 

Direct Cost

When discussing the cost of workplace safety, it’s important to understand the difference between direct and indirect costs. Direct costs are business expenses that are directly involved in selling a good or service. Direct costs are usually specific expenses that are necessary for producing a product or service. For example, if you sell ties, you’ll need fabric to make your product. In this example, fabric is a direct cost necessary for making your product. Raw materials make up a lot of direct costs. Raw materials are materials used to make a product. 

Labor is another common direct cost. The cost of labor can be easily calculated when determining the cost of producing a product. 

Indirect Cost

Indirect costs are expenses that aren’t as easy to calculate. They’re costs that are involved in the process of running a business, but they might not be directly necessary for producing a good or service. Computers, supplies, and paid time off can all be considered indirect costs. Even hiring security for your business is an indirect cost. These expenses might be important for running your business, but they aren’t directly involved in production. Insurance and utilities can also be thought of as indirect costs.

Safety has both direct and indirect costs. Worker’s compensation and medical expenses are both direct costs associated with safety. Both of these costs are very directly tied to the cost of safety and they are easy to calculate. The cost of repairs, training new employees, and the loss of productivity are all indirect costs. While these expenses may be a result of an accident, they aren’t considered direct costs. 

Both direct and indirect costs highlight how expensive workplace accidents can be. Investing in safety equipment is much cheaper than worker’s compensation, productivity loss, and more. Safety equipment can prevent dangerous accidents that can result in injury or even death. Even when accidents are relatively harmless, they can slow down production. 

Safety equipment can save your business a lot of money in the long run. Not only can it prevent accident costs, but there are many indirect benefits. Operating a safe, trustworthy business looks great to employees and customers alike. Employees are more likely to stay with your company when they feel safe. Customers are more likely to buy from you when they trust the safety of your business. When a business refuses to invest in employees, it’s safe to assume they aren’t safe for customers either. Today, many customers even refuse to buy from businesses that they believe are unethical or unsafe. 

Some safety equipment allows your business to run more smoothly. For example, vinyl strip doors have multiple functions. Vinyl strip doors are long pieces of vinyl that hang in the doorways of warehouses. They’re usually clear, making them great for visibility. Since they’re easy to move through, you save time. They can even help regulate temperature, lowering the cost of your power bill. Similar equipment like industrial curtains can also control temperature while reducing noise. Safety equipment has so many additional benefits besides just safety. 

Return on Safety Equipment 

Investing in safety equipment is a great business decision. Safety is very important, especially in industrial settings where accidents are far too common. Safety equipment has a very high return on investment, meaning it saves you money in the long run. When you invest in safety, you lower the risk of dangerous, expensive accidents. Safety equipment is usually cheaper than worker’s compensation and never-ending medical bills. 

Purchasing the right equipment means that your business can operate safely and smoothly. Singer Safety produces tons of high-quality products that are sure to give you a return on your investment. From industrial curtains to vinyl strip doors, safety equipment has many benefits that can save you a lot of money.