Good News! An investment for Health and Safety can give you returns more than 24 %
A study by the researchers from the Institute for Work and Health (IWH) among large employers in the manufacturing, construction and transportation sectors in Canada found average returns on investment in workplace health and safety ranging from 24% to 114%. Study estimated the net financial return on investments in occupational health and safety among employers with at least 100 full-time equivalent employees in the above three large economic sectors.
The IWH return-on-investment (ROI) study included three phases. First, the project team established an estimate of the average cost of a lost-time workers’ compensation claim, using a methodology by which employers can estimate both the direct and indirect costs of work-related injury and illness.
In the second phase, the team identified employers with at least 100 full-time equivalent (FTE) employees that had the lowest incidence of work-related injury and illness in the three sectors, based on employers’ claims records for the period 2013-2018. In the third phase, the project team applied a set of plausible assumptions to estimate the financial benefits of health and safety expenditures.
For all three sectors studied, the average return on employers’ investment in workplace health and safety was positive and substantial. There was variation around the average, but most employers experienced a positive return. The average financial return was 24 per cent among 289 manufacturing employers, 114 per cent among transportation employers, and 34 per cent among 88 construction employers.
The study was published in a May Issue Briefing from IWH.