OSHA’s inspections not only prevent workers from getting hurt on the job, they also save billions of dollars for employers through reduced workers’ compensation costs. A recent study by business school economists at the University of California and Harvard University followed more than 400 worksites in California after each site underwent an OSHA inspection.
The study, entitled “Randomized Government Safety Inspections Reduce Worker Injuries with No Detectable Job Loss,” appeared in the top scientific journal Science and reports that workplace injury claims dropped 9.4% at businesses in the four years following a randomized OSHA inspection, compared with employers who were not inspected. Those same employers also saved an average of 26% on workers’ compensation costs, compared to similar companies who were not inspected. This means that the average employer saved $355,000 (in 2011 dollars) as a result of an OSHA inspection. Benefits were observed among both small and large employers. Nationwide, these savings to employers amount to an estimated six billion dollars.
While it’s great to know that safety pays, you don’t need to call OSHA to start saving. KPA’s Environment & Safety services are delivered by safety engineers with extensive knowledge in compliance- not only with OSHA, but also EPA, DOT, FAA, along with state and local agencies. As part of our service, they visit your facility and conduct regularly scheduled inspections without intruding on your work day. For our clients, this means reaping the savings, without the headache, potential fines, or paperwork from regulatory agencies.