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.
Studies show that companies spend $1,111 on safety training per employee.
Average training expenditures for large companies (10,000 or more employees) decreased from $19.2 million in 2022 to $16.1 million in 2023.
Many companies view 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.
The manufacturing industry had 490,000 preventable injuries in 2021, with fatalities increasing 10% from 2020 according to National Safety Council (NSC) data.
These safety incidents represent a significant drain on businesses, on top of the often life-changing impacts on workers. In terms of financial costs, there are obvious expenses such as workers’ compensation claims, medical expenses, and regulatory penalties.
In reality, those costs are just the tip of the iceberg. Underneath them hide a wide variety of additional costs that impact the company, its workers, and society as a whole.
The actual cost of safety training per employee varies significantly between companies based on industry, size, and budget.
A cost of safety training budget refers to the direct and indirect costs and resources used to train employees in an organization. It includes the cost of courses, books, and other learning materials.
It also includes indirect costs like wages, compensation, and time spent setting up training.
It’s not unusual for an organization – regardless of size – to have problems getting a clear handle on how much to spend for the cost of safety.
Experts in this area contend one of the best ways to determine cost of safety based on salary is with this simple formula:
Total yearly salary (per employee) X 1-3% = training budget.
Get the total amount you spend on each employee. Then multiply that by one to 3% of their salary. This will give you your training budget.
This technique is ideal as organizations can cover both fixed costs (employee pay, office supplies, and equipment) and variable costs (hidden or unplanned costs).
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.
Learning Objectives:
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.
Target Audience:
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.
Course Outline:
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
Safety Economics
- 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
Capstone Project
- 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.