|
Several factors are important for determining return on the investment in safety and health interventions. The cost of any new equipment is an obvious one, but there are other factors that determine when, or if, a reduction in injury or an increase in productivity pays for the cost of the new equipment or program. You may want to consider the following factors:
- Employee characteristics: wages and associated fringe benefits and taxes, cost of supervision, cost of overtime
- Employee turnover and associated costs
- Occurrence and costs of injury
- Training costs and other start-up costs of new intervention
- Reduction in overtime, training costs, turnover attributable to new intervention
- Reduction of occurrence and costs of injury
- Change in productivity with new equipment/program
Construction Solutions has deployed a free, easy-to-use online ROI Calculator that you can use to prepare your own custom analysis:
The NIOSH website includes a page that addresses the cost effectiveness of interventions in the workplace:
This paper appears in the eLCOSH website with the permission of the author
and/or copyright holder and may not be reproduced without their consent. eLCOSH is an
information clearinghouse. eLCOSH and its sponsors are not responsible for the accuracy of
information provided on this web site, nor for its use or misuse.
|