ROI of prevention: measuring health & safety return on investment

European studies show that every euro invested in prevention can generate meaningful savings. This white paper gives you the keys to calculate the ROI of your health & safety programme and present it to management.

The real costs of a workplace accident

A workplace accident generates direct and indirect costs often underestimated by companies:

Direct costs

• Increased accident insurance premiums (impact over the following 3 years)
• Daily allowances and medical expenses
• Possible fines and penalties

Indirect costs (often 3 to 5× direct costs)

• Production disruption
• Replacing and training a temporary worker
• Time spent by managers and HR
• Impact on team morale
• Damage to employer brand

The health & safety ROI formula

ROI = (Savings achieved - H&S programme costs) / H&S programme costs × 100

The 4 indicators to present to management

1. Cost avoided: estimate of accidents prevented through prevention actions
2. Absenteeism reduction: impact on productivity
3. Decrease in accident insurance premiums: measurable from the 2nd year
4. Reduction in non-quality costs: less production disruption

How software helps objectify the discussion

Kitry helps consolidate data, track actions and provide a more usable view for governance and management discussions.