Safety both on the job site and in the equipment yard makes financial sense. It's both socially responsible and good business. Contractors who invest in sound safety training see a noticeable return on investment. Their business image in the community and the industry improves as they comply with standards and regulations. The bonuses, though, are cost savings, efficient operations and employee satisfaction.
"Employers want their employees, customers and the public to view them as safety minded, health conscious and sustainable," said the American Society of Safety Professionals (ASSP).
In a blog post on safety ROI, the association said that non-compliance can be disastrous and cost an organization financially and in public perception.
In fact, a proven record in workplace safety and construction safety elevates your standing with clients, partners and investors, believes YellowBird Training.
"In the age of environmental, social, governance metrics, strong safety performance is a key evaluation criterion," said the firm in a blog post.
Investors are increasingly scrutinizing safety data as part of their risk assessments, it noted.
"Clients, especially in government and enterprise contracts, prefer vendors with demonstrated safety excellence."
Occupational safety and health (OSH) programs can reduce costly worker injuries and incidents, the group said. These cost reductions allow companies to reduce expenses related to medical care, paid time off, litigation and disaster mitigation.
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Beyond the human cost, there's a compelling financial incentive, stressed YellowBird.
One of the most overlooked benefits is the cost savings from subcontractor safety training, said the organization in a blog post.
"Insurance premiums, legal settlements and project downtime all add up when safety is neglected," it noted.
Companies that implement safety protocols effectively report a return of $4 to $6 for every $1 spent on safety programs, said YellowBird.
Lower incident rates also reduce your Experience Modification Rate (EMR), directly influencing workers' compensation insurance premiums.
"An organization-wide focus on safety leads to higher worker productivity," said the ASSP article. This productivity, in turn, "drives short-term revenue growth and supports long-term sustainability."
YellowBird sees this trend, as well. The training firm believes safer environments boost morale, retention and overall productivity.
Recruiting and retaining top talent is easier for safety-conscious organizations, said ASSP. This is especially true for contractors that provide safe and comfortable workplaces, care for employee well-being and protect the environment.
Further, YellowBird points out, top-tier subcontractors want to work for contractors that take their well-being seriously.
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"Offering contractor safety training demonstrates professionalism and care, increasing contractor loyalty and the quality of their work," the firm said. "In markets with skilled labor shortages, a reputation for safety can be a critical differentiator."
In fact, reduced turnover and higher subcontractor engagement mean better project outcomes, said YellowBird.
"Some business leaders perceive workplace safety as a compliance-driven or feel-good initiative that costs their organizations money," said ASSP.
High-performing organizations, however, see real returns when they continually identify, analyze and evaluate risks, and evaluate existing controls. Add to that list executing needed improvements — "a formal process known as risk assessment," according to the ASSP post.
Safety training plays a key role in safety policy and the ROI on that training is measurable, say organizations that focus on training and certification.
CraneTech believes that some contractors often see workplace safety training like a trimmable line item. This philosophy can actually drive up insurance costs or even send a good worker home with an on-the-job injury.
"The truth is simple," said the crane training and certification company: "Safety protects both profit and people."
CraneTech trainers believe the ROI of safety training can be measured through fewer injuries and lower workers' compensation costs. It also can be tracked in reduced downtime and stronger workforce performance, CraneTech wrote in a blog post.
"When employees understand hazards and supervisors reinforce safe practices, incidents decrease and operations run more smoothly," said the firm.
Statistics Paint Serious Picture
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On construction job sites, forklifts and fall protection continue to be OSHA Top 10 citations — meaning real exposure, real fines and preventable incidents.
CraneTech notes that the risks most likely to impact a contractor's operation are significant. Falls to a lower level are among the most numerous.
Contact with objects/equipment were logged not only as the cause of a high number of fatalities but a leading source of serious lost-time cases.
"These facts are not theory," said CraneTech. They come from national datasets, insurance indexes and real-world studies.
"Training is one of the most direct ways companies can mitigate these costs without slowing growth."
Small businesses often feel the impact of incidents the most, the firm said, which is why small contractors can't afford not to invest in safety training.
"Even one claim can erase an entire quarter's profit for a small business," according to the CraneTech article.
OSHA's $afety Pays tool estimates direct (medical, insurance) and indirect (overtime, retraining, delays) costs and calculates how much extra sales are necessary to break even.
The OSHA tool estimates direct and indirect costs and calculates how much extra sales are necessary to break even.
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Examples of direct costs are medical and insurance expenses, while indirect expenses may include overtime, retraining and project delays.
Running the numbers for your operation against your profit margin is a quick way to show leadership why safety pays, believes CraneTech.
Where to Commit Your Safety Training Dollars
CraneTech suggests contractors focus first on programs where OSHA already expects training and qualifications.
Also focus on programs where incidents are common and costly, "even where a national certification isn't required," said the firm.
When forklifts are a regular part of daily work, every operator should be trained and evaluated on forklift operations. Records should be maintained on the training and evaluation of every operator who participates.
Perform a pre-use inspection daily — each shift for 24/7 operations — per OSHA regulations.
This all pays, said CraneTech, in fewer struck-bys, tip-overs and property damage. "Forklift incidents remain a significant source of severe cases," it said.
Regarding aerial lifts (MEWPs) and fall protection, only trained and authorized employees may operate, per OSHA.
A designated person should test controls each day prior to use and a full-body harness should be correctly worn and secured to an anchor point.
This practice pays in the prevention of serious injuries and costly errors, said CraneTech,
"Many incidents occur during setup, repositioning or when entering and exiting the platform," according to the company's blog post. "Training on stability, fall protection and site hazards helps prevent serious injuries and costly errors."
For crane operations, a pre-use inspection of rigging gear should be performed each shift.
In the inspection, OSHA dictates that defective equipment should be removed from service, defects tagged out and corrective actions documented.
CraneTech believes this practice pays in recognizing worn slings, bent hooks or damaged hardware before a lift, which prevents incidents and protects gear.
OSHA dictates employers ensure signal persons are properly qualified to give hand or voice signals and recognize load hazards before directing crane operations.
"Clear, consistent signals reduce crane miscommunication during lifts and help prevent struck-by and caught-between incidents." That's the pay-off, said CraneTech.
OSHA-recommended practices say managers and front-line leaders should review the day's work before operations begin. They should confirm required inspections were completed, address hazards before work begins and reinforce key safety points during toolbox talks.
"Supervision turns training into daily habits and helps build a strong safety culture," said CraneTech.
When supervisors are involved, crews make fewer mistakes, the blog post said, and work continues without costly interruptions.
The organization recommends small contractors start with a 90-day plan to make affordable safety improvements:
• Pick two high-exposure areas to start. For many, is said, that's forklift and inspection programs.
• Train operators and your "designated" personnel. Put daily checklists in place.
• Train your leaders/supervisors on basics: pre-task talks, verifying inspections, fixing hazards and documenting corrective actions.
For 60 to 90 days, track a few leading safety indicators such as near-misses, defects identified and corrected, training completions and inspection compliance.
Review results monthly and show the financial impact. Contractors can do this by re-running OSHA $afety Pays with profit margin.
They can then share the "sales-to-break-even" number, along with incident trends, to owners and managers.
A strong safety program, believes CraneTech, starts with documented trained and evaluated operators and pre-use checks before the first lift or drive.
Cranes and hoists receive frequent and periodic inspections on schedule, with a designated person assigned and records maintained.
Supervisors address hazards promptly and review key safety indicators each month.
Safety training organizations say first and foremost a contractor must consider how much he or she is actually losing by not investing in safety training.
"The bottom line: Safety training protects both people and profit," said CraneTech.
"Investing in safety leads to lower injury and workers' compensation costs, fewer delays, stronger retention and better performance."
The data is clear, said the firm, and the path is practical for operations of any size.
"Start with your highest-exposure areas, strengthen supervisor oversight, measure what matters, and share results in both dollars and incident rates." CEG
