Safety Management

The High Price of Safety; Is It Worth It?

Workplace regulations, including 25 major statutes and executive orders, cost U.S. employers an estimated $91 billion annually, according to a study by the Mercatus Center at George Mason University. More than half of that amount , $48.6 billion, is for occupational safety and health regulations.

In a separate study, by the Liberty Mutual Group, 95 percent of business executives said workplace safety has a positive impact on a company's financial performance. Sixty-one percent of the 200 executives surveyed said they believe their companies receive a return on investment of at least $3 for every $1 they spend on workplace safety.

Combined, the two studies suggest that business executives recognize the bottom-line benefits of paying attention to workplace safety and health, although they might be surprised to find out how much they are actually spending on regulatory compliance, some of which may not have a direct impact on safety and health.