Many factors impact a business's cash flow, both directly and indirectly. Investing in Occupational Health and Safety (OHS) has improved cash flow through various factors. Despite being a legal responsibility for companies, practicing good OHS standards can also improve the business's success.
What is Occupational Health and Safety?
International Labour Organization describes Occupational Health and Safety as "the science of anticipation, recognition, evaluation, and control of hazards arising at the workplace". It is applied to prevent accidents, injuries, and deaths of everyone employed at the workplace.
OHS, in general, is a broad and diverse field. Its concern is not just about safe working standards among employees but also related to the tool and machinery operations, ergonomic practices, housekeeping, environmental or natural risks, disease prevention, and human relation management to avoid stress, physical conflicts, and violence.
OHS and Business' Cash Flow
Applying OHS is known for creating better cash flow. A 2011 study by the International Social Security Association showed that the return of investment value from using OHS is 2.2. This means that from every $1 invested in OHS, there is a $2.2 return on investment.
This study opposes the typical view about OSH among companies with outdated values. There have been many cases where companies cut the costs on OHS practices to save money, but the cut ended up hurting them more because of injuries, accidents, and deaths. The companies must also deal with negative reputations, lawsuits, and high turnover rates, which stretch them more.
By investing in Occupational Health and Safety, companies can create better workplace environments for their workers, creating a compelling long-term investment while protecting the workers.
Benefits of OHS for Business
What kind of benefits OHS application brings to business and cash flow? Here are several examples:
A safe workplace improves productivity, which is beneficial for revenues and company performance. The OHS application reduces dangerous situations and helps workers do their jobs more efficiently. It also means decreasing numbers of sick leave and absenteeism.
When workers experience accidents or sickness caused by unsafe working conditions, the company is responsible for paying compensation costs, disability management costs, and another related spending. The company may also be required to pay fines. By applying proper OHS, the company can decrease these costs in the long run.
Improving Stock Market Performance
Occupational Health and Safety have a significant role in keeping and improving the stock market performance. The combination of a good reputation, low turnover, high safety standards, and worker loyalty will add to the company's performance in the stock market.
Lowering Turnover Rate
A high turnover rate can burden a company in many ways. It forces the company to repeatedly train new employees, increasing operational costs and reducing efficiency. By creating a better and safer work environment, the company can lower the turnover rate because employees tend to work longer.
Tool to Build Better Occupational Health and Safety
Applying a good Occupational Health and Safety standard at work requires top efforts and resources, including tools. Nimbly is a digital management tool that can help you use OHS easier and efficiently. With a digital checklist, monitoring tool, and complete analytic system, Nimbly allows leaders, managers, supervisors, and technical experts to apply OHS principles at work based on SOP.
Here are several features Nimbly offers to apply OHS at the workplace better:
Nimbly's digital checklist is helpful to remind employees in certain positions about the list of priorities, such as checking, controlling, and adjusting safety-related tools or programs. The lists can be adjusted based on SOP, and it can be shared with officers in other departments. Perfect for making sure that every OHS-related task is fulfilled.
Nimbly immediately alerts you about specific issues and shares the resolution info. You can adjust the information based on the SOP. If there is no predetermined SOP, Nimbly will automatically generate issue cards. No possible problems will go undetected with this automatic feature.
Occupational Health and Safety program needs to be reviewed and evaluated. Nimbly has a complete analytics system that creates charts, tables, and other graphics for more straightforward analysis. You can share the data to assess OHS application and results. Applying Occupational Health and Safety principles is an excellent long-term investment to support cash flow and business reputation. Download Nimbly to make the process easier in your company.