- OIL & GAS
Companies that invest consistently in safety realize positive bottom-line results, reduced absenteeism, lower turnover rates, higher productivity, increased employee morale and a positive brand image, according to ASSE. Plus, as illnesses, injuries and fatalities decline so, too, do healthcare and workers' compensation costs.
Studies have reportedly shown that the indirect cost of an incident can be up to ten times the direct costs. For every $1 invested in an effective workplace safety program, $4 to $6 may be saved as illnesses, injuries and fatalities decline. Indirect costs include: training and compensating replacement workers; repairing damaged property; accident investigation and implementation of corrective action; scheduling delays and lost productivity; administrative expenses; low employee morale and increased absenteeism; and poor customer and community relations.
ASSE points out the following examples of positive bottom-line results:
"There is a direct positive correlation between investment in EHS and its subsequent return on investment," Kendrick notes.