How often do we say that prevention is better than the cure? Aurenda has been saying it for over ten years now. Money, time and effort spent on safety and injury management now (prevention) saves you later with fewer lost time injuries, decreased injury claims and – potentially – lower workers’ compensation premiums.
So someone in America has done a study.
The new study, co-authored by Harvard Business School Professor Michael Toffel, Professor David Levine of the Haas School of Business at the University of California, Berkeley, and Boston University doctoral student Matthew Johnson, examines workplace safety inspections conducted by California’s Division of Occupational Safety and Health (Cal/OSHA). It will be published in Science journal.
The study found that within high-hazard industries in California, inspected workplaces reduced their injury claims by 9.4 percent and saved 26 percent on workers’ compensation costs in the four years following the inspection, compared to a similar set of uninspected workplaces. On average, inspected firms saved an estimated $355,000 in injury claims and compensation for paid lost work over that period. What’s more, there was no discernible impact on the companies’ profits.
The cost savings applied to both small (less than $2000) and large (more than $2000) workers’ compensation claims, and the reduced injuries and cost savings lasted for at least four years after the inspection. These findings suggest the inspections had a lasting, across-the-board effect.
“We spent several years collecting data, not just on injuries, which is very important, but also on other indicators to see whether inspections led to problems they are often accused of causing – like whether they increased costs and led to the elimination of jobs. We looked at company survival, employment, sales and total payroll to see if inspections were detrimental to the employers,” said Levine.
“Across the numerous outcomes we looked at, we never saw any evidence of inspections causing harm,” Toffel explained. “If OSHA inspections conducted in all 50 states are as valuable as the ones we studied, inspections improve safety worth roughly $6 billion to employers and employees, ignoring pain and suffering. The overall message of our research is that these inspections worked pretty much the way one would hope. They improved safety, and they didn’t cost firms enough that we could detect it.”
From Science http://www.sciencemag.org/content/336/6083/907
This study was applied to high risk industries, small to large enterprises and the results were the same: workplace site inspections and audits saved the business money in the long run. At Aurenda we say “because injury costs” and here is the proof.