Amid the economic uncertainty facing Canadians, many are considering smart investment strategies to navigate potential challenges. As potential tariffs could have a negative impact on the growth of Canada’s travel industry, it only makes sense that businesses are looking for ways to reduce costs and retain employees. Investment in health and safety could be the solution.

“When looking at ways to reduce costs, health and safety should not be an area to cut. Doing so, could not only have a negative impact on the quality of service you provide to customers, but it will also leave your business vulnerable to the devastating costs that come with workplace injuries,” says Ayden Robertson, Health and Safety Consultant with Workplace Safety & Prevention Services (WSPS).

“Imagine losing a member of your housekeeping team to a back injury, or a key person from your kitchen staff because of a serious laceration, or someone from maintenance after a fall. In addition to dealing with a medical emergency, now you have to rely on the remaining employees to fill the gap left by the injured worker, likely with overtime, which is costly and often leads to burnout. “When employees are stressed, overworked, and worried that they may get hurt while doing their job, it creates a psychologically unsafe workplace. It often leads to absenteeism and employees looking for work elsewhere,” explains Ayden. “Ultimately, when these things happen, they leave your business less able to meet the needs of your customers, which is a major disadvantage in hospitality.”

While trying to minimize the disruption to operations, you would also have to deal with the direct costs of the injury. “In addition to lost productivity and a possible investigation, you will have medical costs, rising insurance premiums, and maybe fines,” says Ayden. “Don’t forget about the costs of recruitment and training,” he adds. It can be difficult for a business to recover from something like this, particularly smaller businesses and those that may already be in a precarious situation due to current economic circumstances.

What is your health and safety ROI?

Rather than looking to cut spending on health and safety, investing in health and safety could be one way to shore-up your business. The Institute for Work and Health, an Ontario-based organization that specializes in occupational health and safety research, studied the return on investment (ROI) when businesses invest in health and safety. They took the average health and safety expenditures across 17 sectors and measured them against the financial benefits gained. Their findings showed a return ranging from 24% to 114%, depending on the sector. “Twenty-four percent would be considered a good return on any investment,” Ayden points out.

The expenditures used in the study included health and safety training, supervision, personal protective equipment, professional occupational health and safety services, and capital investments related to improving health and safety. The average amount invested per employee across the 17 sectors was $1,303. 

To determine the return on that health and safety investment, researchers considered the tangible and intangible financial gains. When an injury is prevented, you save all of the direct costs Ayden mentioned (i.e., medical costs, insurance costs, fines, lost productivity, repairs, recruitment and training) and keep your operations running smoothly. When you factor in some intangible gains, such as employee morale and job satisfaction, along with stable, high-quality service, it adds even more to the financial return. 

Psychological safety matters as much as physical safety

Preventing mental harm is just as important as preventing physical harm. “Creating a psychologically safe workplace empowers employees,” says Ayden. “It demonstrates trust and value, which contribute to employee retention.” Ayden recommends clearly communicating to employees that they are not expected to tolerate bullying, harassment, or violent behaviour. 

Ensure that you have an up-to-date violence and harassment policy and provide training on that policy. “You may also want to complete de-escalation training with your staff to better equip them to handle difficult customers,” suggests Ayden. “It can be very stressful when someone finds themselves in a situation where they are unsure of what to do. Having knowledge, preparation, and a plan can reduce that stress, which contributes to positive mental health.”

Investing in people brings stability

Providing a mentally and physically safe work environment allows employees to grow and thrive in their jobs. “When people have the training, skills, and tools they need to perform their job well, it makes a difference. It shouldn’t just be about getting through a shift. You want people to take pride in the job they are doing,” says Ayden.

Ayden recommends starting with a detailed health and safety orientation for your workers, even if they are temporary. Review safe work procedures that address specific tasks and provide proper training on those procedures. “Talk to some of the more experienced employees when developing procedures. They can help identify some of the hazards involved with a particular task. Often, they can tell you what has worked and what hasn’t,” he says.

We know that healthy, competent workers contribute to stable, predictable operations, which is good for business. Rather than looking at health and safety as a cost, leverage it as an investment to help your business stay on track in an uncertain economy. Check out the WSPS Building Blocks, where you get expert advice, tailored resources, and customizable templates and forms. Start today.

The information in this article is accurate as of its publication date.