Do safety management programs improve a company's bottom line?

The answer is a resounding "YES," although the benefits may be somewhat hard to quantify without an effective process for managing data and implementing Key Performance Indicators (KPI) and Service Level Agreements (SLA).

In addition to potential outright savings on benefit claims, civil liability damages, or litigation expenses, having a solid safety and health management program with senior management commitment will improve productivity and employee morale.

SMS documentation must include and refer to, as appropriate, all relevant and applicable national and international regulations.

It must also include SMS-specific records and documentation, such as hazard reporting forms, lines of accountability, responsibility and authority regarding the management of operational safety and the structure of the safety management organization.

It can also make the difference between winning and losing contracts.

One of the best ways to look at the SMS is to consider that the overhead (manpower – financial – training, etc.) is an investment in your business, rather than thinking of it as an expense. While it may be considered somewhat strange to think of safety as an investment, in basic terms, the money you pay for your safety program is likely significantly less than what you’d pay for a preventable incident. Once you understand the economics involved, along with the negative bottom-line impacts of each safety incident, implementing SMS becomes a no-brainer.

 

The following list identifies a small number of the benefits related to an effective SMS:

a) Improved safety culture which leads to improved safety in an operational environment and lower accident rate.

b) Improved organizational behavior leads to a lower level of compliance-related findings and better long-term decision-making ability.

c) Lower level of incidents and consequently a reduced exposure to accidents.

d) Improved awareness of the internal exposure status is driven by improved safety data and the availability of safety-related documentation.

e) Improved reputation within the industry including passengers and business stakeholders – the potential consequence is increased business; improved data flow provides the opportunity to raise the standards across the business.

f) Higher quality investor confidence, improved organisational stability, enhanced revenue flow, and reduced exposure to waste.

g) Reduction in employee “churn” which means that employees stay longer. Maintaining a stable employment base provides a higher level of organisational competence.

h) Greater acceptance of the need to optimize processes and procedures makes it easier to implement organizational changes (Management of Change).

i) Integrated with an effective Quality Management System (QMS), a combined SMS / QMS approach provides significant benefits across the organisation—both in terms of the SMS's general health and well-being and in terms of Return on Investment (ROI) and the general reduction in exposure across the business. 

 

Have questions about our programs, need more information, or want to learn about our exclusive special offers? We’re here to help! Reach out to us at team@sassofia.com, and one of our friendly experts will get back to you promptly. Let us guide you in finding the perfect training solution tailored to your needs!