Well-crafted worksite safety programs can generate considerable ROI and actually contribute to the financial health of the organization. Workplace injuries remain common in the construction space, despite the advancement of environmental health and safety technologies and techniques.
Businesses in the sector reported 2.8 million nonfatal workplace injuries and illnesses in 2017, the latest year for which data from the Bureau of Labor Statistics is available. More than 920 of these incidents resulted in death. Worse yet, analysts for the National Safety Council deemed the majority of these accidents preventable.
So, why are many builders failing to put into place seemingly essential precautionary measures into place via technology-driven safety initiatives? The answer: A perceived lack of return on investment.
Construction companies navigating the modern marketplace must prioritize spending, and EHS operations often land low on the fiscal totem pole. In reality, well-crafted worksite safety programs can generate considerable ROI and actually contribute to the financial health of the organization. Here are some examples.
Lower Compliance Costs
Adhering to Occupational Safety and Health Administration regulations is neither easy nor inexpensive.
Construction firms set aside significant amounts of time for compliance-related activities, many of which center on manual processes. These critical exercises can drain cash coffers. Construction companies with formalized worksite safety programs based on cutting-edge EHS technology often dodge these costs by automating compliance-related administrative actions. This not only bolsters back-office productivity but also facilitates more responsive compliance operations, making it easier for the business to react to sudden regulatory shifts which unfold routinely.
Reduced Financial Penalties
OSHA noncompliance penalties increased in 2019. Now, the agency can distribute fines as high as $132,598, the new maximum penalty for a repeated or willful violation. Even a serious violation, the least pressing citation OSHA can deal out, comes with a fine of $13,260. These relatively small amounts can add up for both construction companies with razor-thin margins and those boasting relative financial security.
EHS programs offer real ROI by decreasing the likelihood of worksite incidents that could result in regulatory action. With such initiatives in place, builders can effectively pinpoint and address hazards before they injure employees, thereby avoiding OSHA investigations, citations for noncompliance and the financial penalties that accompany them.
Improved Worker Productivity
Most businesses in the construction space are aware of the direct costs that materialize when an employee gets injured on the job. However, these expenses often pale in comparison to the amount firms surrender as a result of lost productivity, according to the NSC. The average construction company must get an extra $1,400 worth of work per active employee, per day to offset the cost of functioning with one man down, the organization found.
This is simply unsustainable for most builders, a vast majority of which are already dealing with staff shortages, the U.S. Chamber of Commerce reported.
Again, properly designed EHS programs directly address this common problem, allowing construction companies to maintain safe worksites, reduce worker injury rates and move forward, fully staffed.
These are just a handful of the ways that technology-driven EHS initiatives can generate ROI and lay the groundwork for financial success in the construction industry. Is your business looking to cultivate this sort of bottom line-building safety culture? We help construction firms of all sizes maintain safe and OSHA-compliant worksites via an innovative suite of EHS tools. Our software facilitates seamless data collection and analysis efforts while addressing ancillary issues such as regulatory compliance and profitability. Contact ProcessMAP today to learn how our solutions can help your EHS team generate ROI.