Safety and Health Program Adds Value to Your Bottom Line

We are all aware of OSHA’s site inspection activities, but many construction business owners may not be aware that OSHA maintains a comprehensive website that provides free information and training materials on Safety for employers to use in developing their safety programs.

Here is an example from the “OSHA Handbook for Small Business”, that is available on the website (http://www.osha.gov/), which we feel you will find useful.
 
Addressing safety and health issues in the workplace saves the employer money and adds value to the business. Recent estimates place the business costs associated with occupational injuries at close to $170 billion-expenditures that come straight out of company profits.

When workers stay whole and healthy, the direct cost-savings to businesses include:

• lower workers’ compensation insurance costs;
• reduced medical expenditures;
• smaller expenditures for return-to-work programs;
• fewer faulty products;
• lower costs for job accommodations for
• injured workers;
• less money spent for overtime benefits.

Safety and health also make big reductions in indirect costs, due to:

• increased productivity;
• higher quality products;
• increased morale;
• better labor/management relations;
• reduced turnover;
• better use of human resources.

Employees and their families benefit from safety and health because:

• their incomes are protected;
• their family lives are not hindered by injury;
• their stress is not increased.

Simply put, protecting people on the job is in everyone’s best interest-our economy, our communities, our fellow workers and our families. Safety and health add value to businesses, workplaces and lives.

INTRODUCTION: The Value of a Safety and Health Management System

A Profit and Loss Statement

As a small business owner, you are, by nature, a risk taker. You wager your business acumen against larger, perhaps more heavily financed corporate groups and other free-spirited, self-employed individuals like yourself. There is excitement and challenge in such a venture, but to succeed you need good management information, an ability to be a good manager of people and the intelligence and inner strength to make the right decisions.

Thousands of workers die each year and many, many more suffer injury or illness from conditions at work. But how often does an owner or manager like you actually see or even hear about work-related deaths, serious injuries or illnesses in the businesses with which you are familiar? How often has your business actually sustained this type of loss?

In most small businesses, the answer is rarely. For this reason, many owners or managers do not understand why there is controversy about the Occupational Safety and Health Administration (OSHA), job safety and health standards, inspections, citations, etc.

But others have learned why. Unfortunately, they have experienced a loss. These owner/managers will tell you that it is too late to do anything once a serious accident happens. They have learned that prevention is the only real way to avoid this loss.

Reducing losses is a goal that you as an owner or manager share with us in OSHA. While we may see this goal in a slightly different light, it remains a common bond.

We have learned from small employers, like you, that you place a high value on the well-being of your employees. Like many small businesses, you may employ family members and personal acquaintances. And, if you don’t know your employees
before they are hired, then chances are that the very size of your workplace will promote the closeness and concern for one another that small businesses value.

Assuming that you are committed to safe and healthful work practices, OSHA wants to work with you to prevent all losses. We believe that, when you make job safety and health a real part of your everyday operations, you will not lose in the long run. Investing in safety and health activity now will better enable you to avoid possible losses in the future.

Developing a Profitable Strategy for Handling Occupational Safety and Health

Nobody wants accidents to happen in his or her business. A serious fire, a permanent injury, or the death of an employee or owner can cause the loss of profit or even an entire business. To prevent such losses, you don’t have to turn your business upside down. You may not have to spend a lot of money, either. You do need to use good business sense and apply recognized prevention principles.

There are reasons why accidents happen. Something goes wrong somewhere. It may take some thought, and maybe the help of friends or other trained people, to figure out what went wrong, but an accident always has a cause-a reason why. Once you know why an accident happened, it is possible to prevent future incidents. You need some basic facts and perhaps some help from others who already know some of the answers. You also need a plan-a plan to prevent accidents.

Not all dangers at your worksite depend on an accident to cause harm, of course. Worker exposure to toxic chemicals or harmful levels of noise or radiation may happen in conjunction with routine work as well as by accident. You may not realize the extent of the exposure or harm that you and your employees face. The effect may not be immediate. You need a plan that includes prevention of these health hazard exposures and accidents. You need a safety and health management system.

It is not difficult to develop such a plan. Basically, your plan should address the types of accidents and health hazard exposures that could happen in your workplace. Because each workplace is different, your program should address your specific needs and requirements.

There are four basic elements to all good safety and health programs. These are as follows:

1. Management Commitment and Employee Involvement. The manager or management team leads the way, by setting policy, assigning and supporting responsibility, setting an example and involving employees.
2. Worksite Analysis. The worksite is continually analyzed to identify all existing and potential hazards.
3. Hazard Prevention and Control. Methods to prevent or control existing or potential hazards are put in place and maintained.
4. Training for Employees, Supervisors and Managers. Managers, supervisors and employees are trained to understand and deal with worksite hazards.

Regardless of the size of your business, you should use each of these elements to prevent workplace accidents and possible injuries and illnesses.

Developing a workplace program following these four points is a key step in protecting you and your workers’ safety and health. If you already have a program, reviewing it in relation to these elements should help you improve what you have.

Following this four-point approach to safety and health in your business may also improve efficiency. It may help you reduce insurance claims and other costs. While having a safety and health plan based on these four elements does not guarantee compliance with OSHA standards, the approach will help you toward full compliance and beyond.

It will certainly give you a way to express and document your good faith and commitment to protecting your workers’ health and safety.

We hope the above we have highlighted for you will provide as an initial guide in developing a safety program for your business goals of completing your projects safely, on time and on budget.

Construction Business Owner, September 2006