Strategies for demonstrating safety ROI to executives

In a recent webinar hosted by Alcumus, health and safety experts Robin Asher and Lorena Espin provide insights on how to effectively communicate the return on safety investments to C-suite executives. The session, titled "How to Demonstrate the Return on Safety to C-Level Executives," focuses on measuring the impact of safety initiatives and presenting a compelling business case for prioritizing health and safety within organizations.

Asher, technical standards manager at Alcumus SafeContractor, opens with the challenge of getting senior leadership to see safety investments as beneficial. "We know it can be a challenge to engage and excite senior leadership about the value of investing in health and safety initiatives," she states. She emphasizes that safety strategies need to align with broader business goals to gain executive buy-in. "Developing a business case for health and safety that reflects organizational priorities is crucial."

Espin, account manager at Alcumus SafeContractor, adds that companies often face unique challenges that affect their ability to maintain robust safety programs. "You could have complex processes or multiple locations with different environmental risks," she explains, noting that such factors can complicate safety management. "In some cases, organizations are fast-growing, which poses additional hurdles in scaling their health and safety practices effectively."

The webinar also addresses common perceptions among executives that safety initiatives entail high upfront costs without immediate returns. "Executives might view health and safety as a cost that doesn’t generate revenue," Espin says. "It’s important to reframe the conversation to highlight the long-term benefits, such as reduced legal liabilities, lower insurance premiums, and improved employee retention."

To resonate with executives, the speakers outline a strategic framework based on three pillars: moral, legal, and business imperatives. Asher underscores the legal aspects, referring to Bill 251, which mandates that companies ensure safe working conditions for all workers, including contractors. "Failure to comply with safety regulations can lead to significant fines and penalties, which certainly catches the attention of the C-suite," she points out.

The business pillar, they argue, is where safety professionals can make the most persuasive case. Espin illustrates how workplace incidents can disrupt business operations, leading to costly delays and lost revenue. "If there's an accident, timelines are disrupted, hours are lost, and the company’s focus shifts from growth to damage control," she says. "These disruptions don't just affect productivity—they can also significantly harm a company's reputation and ability to attract top talent."

The higher risk of incidents among contractors also becomes a focal point of discussion. Espin explains that contractors often operate in dynamic environments with changing conditions, making safety more difficult to manage. "It could be inadequate safety measures or simply a lack of induction and orientation for new contractors," she says. "These factors contribute to why contractors are three times more likely to have an accident compared to permanent employees."

Espin and Asher highlight practical steps for measuring the return on safety investments. One example they provide is the time saved in contractor vetting processes using safety management programs like Alcumus’s. "A process that might take eight hours for initial qualification can be reduced to four hours during requalification," Espin notes. "For companies managing hundreds of contractors, this translates into significant cost savings and frees up resources for other projects."

As the webinar nears its conclusion, the speakers take questions from the audience, addressing topics such as the role of CSA 45001 standards in contractor management and legislative requirements for contractor versus employee training. Espin reiterates that while legal standards are crucial, the ultimate goal is to go beyond compliance. "We don’t just want to meet the minimum requirements," she says. "Our aim is to help companies mature in their safety practices and close any existing gaps."

Asher wraps up the session by encouraging safety professionals to use the insights shared to strengthen their case to executives. "At the end of the day, it’s about protecting lives and ensuring everyone goes home safely," she concludes. "But if you can also show your boss the financial and operational benefits of a strong safety program, you’re more likely to get the backing you need."