Safety Programs Improve Bottom Line for Companies

Everyone understands that strong safety programs pay off for contractors and construction companies. Such programs help to prevent injuries and fatal accidents on job sites. They also save money that would be spent paying workers’ compensation claims, as well as defending themselves when lawsuits are filed against them by injured workers or their families.

Studies show that companies that implement effective safety and health programs can expect to see their injury and illness rates reduced by 20 percent or more, and a return of approximately five dollars for every dollar invested in their safety program. These studies also report that employee injuries make up anywhere from six to nine percent of project costs on jobs sites without a safety program, as opposed to less than three percent of project costs when an effective safety program has been implemented.

However, there are other tangible benefits that many companies do not associate with strong safety programs. And contrary to the belief that instituting safety programs is a drain on a construction company’s bottom line, experts report that even small construction companies see a positive effect on their bottom line when safety programs are put in place.

When asked, contractors and construction companies that have implemented comprehensive safety management programs report the following positive findings:

• Almost half say they are able to complete projects faster.
• Thirty-nine percent report their project budget is decreased.
• More than 80 percent say their company’s reputation is improved.
• Sixty-six percent report that they are able to contract additional work.
• Sixty-six percent say the quality of completed projects is increased.

Statistics show that the more substantial and comprehensive the safety program, the more significant the benefits – both in terms of improved profit margins and worker safety – are for companies. These safety programs also allow companies to hire the best workers in the industry. An average of 13 construction workers die on the job every day. This makes contractors and construction companies that offer comprehensive safety programs much more attractive to construction workers. Construction workers want to be safe, and they want to know that their employer cares about them.

Safety programs are a great way to get the best workers in the industry. A safe work environment also boosts employee morale, leading to fewer absences, less turnover, and quality workmanship.