According to information provided in a report by a nationwide insurance company, approximately 60% of company executives figure that their companies save $3 for every dollar spent on safety programs. A $10,000,000.00 company that spends 1% of their budget on safety can figure to save approximately $300,000.00. OSHA puts the figure to be more likely $6 to $1 (i.e. $600,000.00 saved).
If an employee is injured, the insurance company reported that for every dollar cost of an accident, approximately $3-$5 additional dollars are spent as indirect costs. Therefore, if an accident costs a company $10,000.00, an additional $40,000.00 may be spent on average for that injury, costing the company a total of $50,000.00.
Well, how much money does that $10,000,000.00 company need to make to recoup that $50,000.00? Assuming the company has a profit margin of 8%, the company will need to increase revenue by an additional $625,000.00 (or 6.25%).
Stay Safe!