Overview

Every day, workplace injuries, illnesses and fatalities cause immeasurable pain and suffering to employees and their families as well as to the company itself. Recent estimates indicate that workplace injuries and illnesses cost American companies approximately $200 billion per year in wasteful and often preventable expenses. Effective management of employee safety and health protection is a decisive factor in reducing the extent and severity of work-related injuries and illnesses. Effective management addresses all work-related hazards and potential hazards that could result from a change in worksite conditions or practices.

Over the past several decades, American businesses have remained profitable and competitive in the local, national and global marketplace by focusing on cost reductions and improvements in productivity, efficiency and quality. Specifically, companies have utilized such business techniques as Six Sigma, Lean, Just In Time, Five S, and Quality Circles as tools to help their companies reduce costs and thus remain profitable and competitive. However, as the cost savings have been achieved in these areas over the years, the ability of companies to further reduce the cost from these areas has greatly diminished. As a result, companies in today's marketplace need to look at what additional areas in their businesses where cost savings can be achieved. The two major potential cost savings areas are in workers' compensation and healthcare. Safety is the common denominator within these two areas where significant cost savings can still be achieved, thus allowing a company to remain profitable and competitive.

The only way a company can focus on reducing workers' compensation and healthcare costs within its operation is through the development of an effective safety and health management system. The results of OSHA's Voluntary Protection Program (VPP) indicate that implementing an effective safety and health management system improves employee morale and productivity, significantly reducing workers' compensation costs and other costs of work-related injuries and illnesses as well as healthcare costs. These findings show that the best safety and health programs involve every level of the organization, instilling a safety culture that reduces accidents for employees and improves the bottom line for the company. As a result, any company can achieve operational excellence through safety by utilizing an effective safety and health management system.

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