Cost of Safety: Investing in a Safer Future Training
Cost of Safety is a 2-day course where participants learn to define the cost of safety and its components within an organizational context. Participants also learn to calculate direct and indirect costs of workplace incidents and safety measures.
Many companies look at safety strictly from a compliance standpoint, looking only to meet bare minimum requirements. While this makes sense given the astronomical number of regulations they must meet, it is ultimately shortsighted.
Unfortunately, a bare minimum approach often leads to underinvestment in safety, driving up costs later when businesses are forced to use valuable resources reacting to incidents.
Taking into account both direct and indirect costs of safety incidents, a proactive approach focused on safety culture and prevention is far more cost-effective.
Frequent plant floor inspections are a key tool for addressing this challenge, allowing companies to:
- Verify compliance with safety protocols and regulatory requirements
- Monitor known hazards and identify new ones
- Verify effectiveness of corrective actions and ensure gains are held in place
- Identify gaps in safety training programs
- Foster more face-to-face conversations about safety
- Demonstrate management’s commitment to safety to gain employee buy-in
The cost of safety is part of an occupational health and safety (OHS) expert’s job and generally consists of taking a look at an organization’s cost of training and cost of personal protective equipment (PPE).
Their cost of safety reports include the total cost of such things as:
- The price of outfitting your staff with PPE (Personal Protective Equipment)
- The cost of researching and developing your safety program
- The cost of running training presentations
- Expenditures on salary for safety officers
- Insurance premiums
All veteran OHS experts tell organizations the same thing: The cost of safety tools is minor compared to the cost of workplace accidents.
Organizations trying to attempt to figure the cost of safety need to first determine the goal of the cost of safety.
Cost of Safety: Investing in a Safer Future Training by Tonex
This course is designed to navigate the complex landscape of the Cost of Safety (COS), which encompasses all expenses related to the prevention of accidents and incidents, as well as the economic impact of unsafe work conditions.
Participants will learn to identify, quantify, and justify safety-related expenditures, and understand how these costs impact an organization’s financial health and employee well-being. The course will explore the balance between operational efficiency and safety investment to achieve sustainable business operations.
At the end of this course, participants will be able to:
- Define the Cost of Safety and its components within an organizational context.
- Calculate direct and indirect costs of workplace incidents and safety measures.
- Develop and analyze safety budgets and investment strategies for maximum ROI.
- Implement cost-effective safety solutions aligned with industry best practices.
- Integrate safety cost analysis into broader organizational risk management.
This course is intended for safety managers, operations directors, HR professionals, risk assessors, and any key personnel responsible for workplace safety and organizational risk management across all sectors.
Introduction to Safety Costs
- Understanding COS and its significance
- The true cost of workplace accidents
Direct and Indirect Costs of Safety
- Medical expenses, legal fees, fines, and compensation
- Loss of productivity, reputation, and employee morale
- Economic theories behind safety investments
- Safety spending vs. profitability analysis
Measuring and Reporting COS
- Tools and techniques for tracking COS
- Effective safety reporting and communication
Strategies for Safety Investment
- Prioritizing safety initiatives
- Calculating return on safety investment (ROSI)
Regulatory Compliance and COS
- Understanding the cost implications of regulations
- Strategies for cost-effective compliance
Insurance and Safety Costs
- The role of insurance in COS
- Managing premiums through safety programs
Safety Culture and Behavioral Economics
- Influencing safety behaviors to reduce costs
- The role of leadership in fostering a safety culture
Technology and Safety Management
- Leveraging technology to improve safety and reduce costs
- Cost-benefit analysis of safety technologies
Risk Management and Decision Making
- Integrating COS into risk management frameworks
- Decision-making processes in safety investments
Case Studies in COS
- Analysis of high-profile safety incidents and their costs
- Lessons learned from safety cost management
Sustainability and Safety
- Aligning COS with sustainable business practices
- Long-term benefits of sustainable safety investments
Workshop: Safety Cost Analysis
- Practical exercises on COS calculation and analysis
- Developing a safety cost action plan
- Participants will conduct a comprehensive COS analysis for their organization, develop a safety investment proposal, and present their business case.
The course will employ a blend of teaching methods, including interactive lectures, group discussions, practical workshops, case studies, and a capstone project to ensure a holistic understanding and application of COS concepts.