The Occupational Safety and Health Administration (OSHA) is commonly thought of as a red tape-laden, bureaucratic behemoth government organization that stunts job growth and reduces bottom-line profits. Yet the facts state otherwise. Take a look at the facts & stats below. Some will surprise you, others will shock you, but all point to a singular, indisputable fact: OSHA actually saves companies money in the long run.
REDUCED WORKERS’ COMPENSATION COSTS
A 2012 study by the University of California and Harvard University concluded that workplace injury claims dropped nearly 10% for employers who had undergone an OSHA inspection. The same study showed an average savings of 26% for total workers’ compensation costs for the same group of employers. These statistics prove the old adage, “Safety pays in the long run.”One study showed that for every $1 spent on safety programs, $5 is saved in accident avoidance and other related savings.
MORE INSPECTIONS = MORE SAVINGS
According to some analysts, more frequent OSHA inspections would save the U.S. economy around $6 billion per year.
The general consensus is that more aggressive OSHA action would stop supervisors and workers from “cutting corners.” Even with a widespread inspection schedule, OSHA can’t prevent all accidents from happening.
Each year, workplaces fatalities, injuries and illnesses add over $170 billion in costs.
WHAT KINDS OF ACCIDENTS DOES OSHA PREVENT?
Accidents are expensive – last year, $93 million was spent on carpentry-related falls – just one part of one industry’s accident expenses!
The 3 most common OSHA standards that are violated are:
Construction fall protection
General industry hazard communication
OSHA legislation has helped reduce the numbers of daily on-the-job fatalities in America. In 1970, the average daily death toll for American laborers was 38.Today, that number has been reduced by almost two-thirds. In 2014, there were 14 worker fatalities per day.
As you can see, these statistics show that OSHA saves employers and companies in total operating costs. And it’s not just money; numerous lives are saved as well. Becoming OSHA compliant is a worthwhile goal for any employer AND employee.