Businesses often view the OH&S as an overhead, but we’re seeing a noticeable shift in how companies view OH&S as key driver of business growth. It’s done by measuring related ROI, which hiring our consulting services will help add to your bottom line.
ROI is a return on investment. When taking OH&S into account, the return on investment (ROI) is typically done by comparing your operational and capital expenses with net benefits.
You can calculate the ROI as such:
We’ll show an example from our experience, but let’s explain the formula first.
Here’s how it would look using one of our anonymous clients as an example.
The numbers, when plugged into the formula looks like this:
Their ROI calculation was 65%
It’s also worthwhile to say that their business saw a $52,000 profit boost (after costs to fulfill the work) when receiving enhanced bidder status. They secured a contract after meeting ISNetworld's qualifications, which a large corporation had previously denied their vendor status. However, after winning the RFP, they should be able to expect growth. At Calgary Safety Consults, we take pride in part of that growth.
Studies emphasize the important role of employee morale and engagement in a company's ROI. A report by Gallup reveal that organizations with high employee engagement are 21% more profitable and 17% more productive than those with disengaged staff. Engaged employees tend to show greater innovation, provide higher-quality work, and help retain customers, all of which contribute to a stronger financial performance.
Also, employee satisfaction plays a direct role in reducing turnover, which can be costly for companies. High morale lowers absenteeism and turnover rates, directly reducing associated costs. For example, replacing an employee can cost around 50-60% of their annual salary, while high engagement reduces these costs and increases overall efficiency. Executives widely acknowledge this connection, with 92% agreeing that higher engagement levels lead to happier, more loyal customers, further enhancing ROI.
In a June 28, 2024, a report by an Ontario-based organization, The Institute for Work and Health, published a study investment (ROI) for Ontario businesses. The researchers took the average health and safety expenditures from 17 sectors and compared them to the financial benefits obtained. The results of their research revealed a return that varied between 24% and 114%, depending on the industry. Each dollar spent could potentially yield an ROI exceeding 100%. Even when considering safety as an overhead, an ROI of 24% can be significant.
Keep in mind that hiring a consultant is in part an operational cost, but it can help you become effective in the net benefits. Our goal is to save you money by helping your OH&S be morally solid while maintaining business focus.
Investing in OH&S is more than a compliance checkbox—it's a strategic move for sustainable growth. By partnering with OH&S experts, businesses can boost productivity, minimize hidden costs, and ultimately increase profitability. With clear ROI, an effective safety program doesn’t just protect employees: it strengthens the foundation for a thriving, resilient business.
Ready to see the impact on your bottom line? Contact Calgary Safety Consultants for your complimentary consult to explore tailored OH&S solutions that drive real financial results.
It is the occupational health and safety return on investment when assessing your operational and capital related OH&S cost.
There is a formula, (ROI (%) = (Net Benefits / Cost of Investment) x 100). If you don’t track some of the net benefits you could consider hiring a consultant to help you with that study.
It’s an important KIP. This number can be used to show the health of your OH&S investment. A positive number can be an indication of a strong OH&S Management System. A positive number can also be a good indication of positive safety culture. A negative number could indicate active or latent failures that might need further investigation.
You've made it this far, so let’s take the next step. Calgary Safety Consultants is here to help you ensure compliance, enhance safety, and streamline your OH&S program. Don’t wait—fill out the form, and we’ll connect with you to discuss how we can support your business. Let’s get started!
Calgary Safety Consultants delivers game-changing COR Audits and OH&S consulting designed to keep your business safe, compliant, and accident-free. With 30+ years of expertise in high-risk industries like oil & gas, construction, and manufacturing, we understand the unique challenges you face. We offer tailored safety solutions that not only meet regulatory standards but also reduce operational risks and protect your workforce. From conducting thorough safety audits to implementing comprehensive safety management systems, we ensure your team is fully supported. Our hands-on, collaborative approach means we're with you every step of the way, helping you achieve a safer, more efficient workplace. Let us handle the heavy lifting so your team stays protected, and your business thrives!
