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The Business Case for Safety: Strategies to
Communicate the Business Value of Safety & Health

 

By the 2008 AASCIF Safety & Health Standing Committee

How do we encourage all organizational leaders to invest in an Occupational Health and Safety (OH&S) system? With more operations moving overseas, organizations are seeking every competitive advantage. To that end, retention of the workforce is imperative for achieving organizational success. One means of achieving this is through the implementation of an effective OH&S system.

There is a challenge in selling the value of an effective OH&S system. With the ultimate goal of an effective OH&S system being an injury frequency of zero, it sometimes makes it difficult the sell the idea. This is typically the result of an unclear understanding of the costs of workplace injuries and illness. This is not surprising as safety is largely measured with lagging or trailing indicators. The WCB of NS attempts to empower employers by providing functional data and prevention consultants to facilitate management of their OH&S system.

Organizations also have challenges evaluating their OH&S system. As a compensation organization, we clearly display the return on investment for OH&S to our client base. We provide organizations with data that can be used to both shape the evolution of their OH&S system, but also ascertain the effectiveness of said system.

We at the WCB of NS made it our responsibility to articulate the business case for safety to all of our clients. As we have a sound understanding of true injury costs; it allows us to build a more complete picture of the cost of conducting business in a risk unconscious fashion. Leaders in the field of risk management have stated that the direct to indirect costs of workplace injuries can be a 1 to 5 ratio.

The financial costs of workplace injuries are a compelling argument for the prevention of workplace injuries. This coupled with the moral argument for the protection an organization’s human capital is an argument few leaders can oppose. Therefore, we integrate financial and people resource information into our employer engagement process. This process establishes a relationship with large employers that have potential for significant improvements in the management of OH&S.

For an effective OH&S system, the commitment must begin at the top of an organization. Therefore, the working relationships with our clients are brokered at the CEO level. If safety does not start at the top, it is destined for failure. Safety must be the way of doing business, not an add-on to business processes.

During the initial CEO meetings, we provide an unbiased quantification of the compensation costs associated with their current management of OH&S. We put the message into terms and figures inherent to their industry. The reasons for this are two-fold:
1. It puts the message into terms the client is familiar with;
2. It lends credibility to the WCB representative for understanding the terminology of the industry in question.

Beginning the implementation of an effective OH&S system at the top of an organization makes sense. Attain the buy-in of individuals that have the responsibility and authority to makes things happen. Yet, there is also a concurrent grassroots initiative. We must engage the front line. This is accomplished through our own OH&S perception survey and interviews. This achieves two goals:
1. It engages the front line and provides them a voice;
2. Establishes the beginnings of an communication infrastructure

Now both essential participants groups engaged in the process. This establishes a “top-down” and “bottom-up” communication channel. Escalating claims costs or mismanagement of an OH&S system can be a lack of communication between organization levels. Effective dialogue could also lead to improvements in other areas of the organization’s performance. By engaging the front line, it could lead to improvements in employee morale and improved production. The business case for safety is clear as it leads to benefits across all facets of an organization.

 

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