Can a Safety Management Program yield a Return
On Investment (ROI) ?
It is important not to confuse the benefits of a Safety Management Program with the concept of Return on Investment. According to a Google search, “ROI (Return on Investment) measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments”
During a most recent case study that was conducted using a sample of over 1000 employers across an array of industries within South Africa during the 2019 period suggested an average Return on Investment (ROI) of up to 380% in employers who implemented full turnkey solutions utilising SafetyWallet in partnership with MAKROSAFE Holdings (Pty)Ltd and OHS Online as trusted partners. Not only did these employers ensure compliance to the act, they also ensured that loved ones return home healthy and safe after work on a daily basis whilst being rewarded.
Facing the harsh economic climate, South African employers are continuously faced with rising running costs, increased taxes and decreased revenue as a result of poor economic growth over the last few years resulting in South Africa's Gross Domestic Product (GDP) declining to roughly R385 billion in 2019.
It is estimated that there are currently five hundred and fifty-three thousand four hundred and twenty-five (553 425) registered employers in South Africa which currently employ approximate ten million two hundred and fifty-one thousand employees (10 251 000). In comparison with the current population of South Africa,estimated by Stats SA to be fifty-eight million seven hundred and eighty thousand (58 780 000) in June 2019 according to the released mid-year population estimates, indicates that 17.45% of the South African population currently residing in the country head to work on a daily basis. Unfortunately, not all of them return home healthy and safe after work ...
Given the circumstances, employers are tightening the belts and implementing cost-saving strategies in the order of long term sustainability and in some cases of SME's ….. Just to keep the doors from being shut! As a result, a substantial amount of resource is undoubtedly diverted away from the most important aspects of the business, one of them probably being the safety of its employees as employers slash budgets for personal protective equipment, health and safety training, safety management partners and further in the form of maintenance schedules for machinery, etc. Contrary to popular belief, It's often perceived that Health and Safety endeavours may cost money, well yes they do! However, the results could potentially far outweigh the expense resulting in an impressive ROI if managed effectively.
Upon exploring the benefits of complying to the act, the following would be noted:
- Increased compliance toward health and safety within the workplace
- Reduced medical and compensation fund costs
- Improved workplace culture and job satisfaction
- Improved productivity
- Improved competitiveness in the marketplace
- Improved quality of work
- Reduced absenteeism and employee turnover
- Reduced probability of accidents and exposure to occupational diseases.
The Safety Wallet, backed by technology and driven by intelligence, helps businesses understand how compliant they are, provides tools and support to ensure employers and employees alike can improve Health and Safety compliance within the workplace whilst offering great rewards to ensure motivation along the way.
By employers becoming a member of one of the four SafetyWallet membership reward circles namely :
- Friend Circle
- Family Circle
- Champion Circle
- Pinnacle Club
Businesses immediately qualify for the specific Reward discounts as per the specific membership circle joined.
The picture below, Illustrates one of the membership plans SafetyWallet has to offer to highlight your possible Return on Investment: