According to the American Society of Safety Engineers (ASSE), a Liberty Mutual poll of executives shows that for every $1 spent on direct costs related to an accident, there are another $3 to $5 worth of indirect costs…putting the actual cost of an accident (with direct medical and compensation costs of $15,000) at somewhere between $45,000 and $75,000.

Most executives polled by Liberty Mutual said that for every $1 their company spent on workplace safety, they saved at least $3. In a recent poll of financial decision makers the participants perceived that on average, for every dollar spent improving working place approximately $4.41 would be returned.

This type of return is significant on many levels.  First and foremost is the reduction in accidents that an effective SMS provides.  Second is the economic gain organizations reap upon implementation of a Safety Management Software.  Additionally, as workplace safety improves, so does employee morale which leads to greater productivity and higher profits.

What type of SMS does your company have?  Is it effective?  We’d love to hear your thoughts on this!

 

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