Program Management: Return on Investment


For the cost of just one injury we can provide
training and assistance for hundreds of employees.

Cost US-based office environments can expect 1.0 – 1.6 reported or unreported ergonomic injuries per 100 workers each year. This results in $8,000 – $12,000 in direct medical costs and an additional 2 – 5X more indirect expenses for every 100 workers.

In the United States, Direct Costs
(Workers Compensation) for an
ergonomic injury average
$8,040.00 per case.

 

The Indirect Costs for an injury are
often 2-5 times higher than the
Direct Costs, adding
$16,000.00 to $40,000.00 per case!



Cause of Injuries and Accidents:

SURFACE CAUSES “The Leaves”

  • Lack of management commitment
  • Failure to enforce procedures
  • No employee involvement in procedure development

HIDDEN CAUSES “The Roots”

  • Employee rushing
  • Employee didn’t follow procedures
  • Employee wasn’t paying attention

Employers' Costs of Workplace Injuries and Accidents

DIRECT COSTS  “The Leaves”

  • Medical Costs
  • Increased Compensation Premiums
  • Penalties and Fines

INDIRECT COSTS " The Roots"

  • Cost of internal investigation of the accident/injury
  • Overtime to other employees because of the accident/injury>
  • Hiring and/or training replacement worker
  • Cost of repair or damage to the equipment or product
  • Lost productivity
  • Lower staff morale
  • Administrative costs
  • Loss of good will and damage to reputation


 

[Back to Program Management: Formal]

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The average for every $1 of direct costs of an accident/injury
a company will expend additional $4 in indirect costs

 

ERGONOMICS: Human-centered design; the scientific discipline concerned with design according to human and organizational needs

COST SAVINGS: Reduction in workers' compensation claims due to healthier work environments and fewer injuries

EMPLOYEE MORALE: Organizations that invest in human capital lead to employees who feel valued and respected, resulting in higher
morale and lower turnover

PRODUCTIVITY AND QUALITY: A properly fitted environment, along with improved employee morale, translates into greater
productivity, higher quality products and better services provided

PROFITS: By lowering costs, reaping higher quality products and better services, increased profits result

ROI ERGONOMICS = Cost Savings + Employee Morale + Productivity and Quality + Profits = Return on Investment