We’ve all heard the proverb, “Don’t put off until tomorrow what you can do today.” However, we are all guilty of procrastinating from time to time.
Similarly, many businesses put off getting EHS software even though they know they need it. They postpone making a decision until the next quarter, year, or “the future.” New software acquisition is sometimes put on the back burner because there isn’t enough money in the budget. Or because they are afraid of the disruption that a new system will create.
Whatever the reason, it’s worth considering the cost of doing nothing. What dangers does your company face if it doesn’t invest in EHS software? What opportunities do you think you’re overlooking?
Doing nothing is, more often than not, the most expensive action of all. We’ll look at five reasons why postponing EHS software implementation costs you time and money in the sections below.
● Time/Productivity Lost
Using ineffective tools wastes time and reduces staff productivity. According to a West Monroe survey, the average manager spends up to half of his or her workweek on administrative activities. EHS directors are compelled to spend time transferring data between spreadsheets, tracking down documents, and creating reports, rather than focusing on the big concerns. If you hire consultants, you could be paying hundreds of dollars per hour for a highly qualified specialist to undertake manual data entry chores. Over the course of a year, the cost of lost productivity is staggering.
Good EHS software solves this issue by helping your team to be more productive. Many of the mind-numbing tasks that waste your team’s time can be automated with software. When adopting EHS software like CloudApper Safety, many firms can decrease the time spent on routine operations like data input and reporting.
● Accident Expenses
A single incident can potentially cost more than purchasing new software. According to the National Safety Council, a work-related injury costs $39,000 on average, while a death costs $1.15 million. Damage, fines, and remediation costs might be many times that amount in the case of an environmental incident.
Companies that use EHS software have a better chance of avoiding accidents and injuries. They have the ability to predict and respond to possible threats before they cause major harm.
EHS software can also aid in reducing response time in the event of an unanticipated occurrence, such as a chemical spill or a security breach. A quick response can help limit the amount of harm done to people, property, and the company’s reputation. Regulators may be more lenient with fines and penalties in some situations if you can demonstrate that you acted immediately to fix the situation.
● Insurance Premiums
It is an unavoidable cost of operating a business to pay for insurance for buildings, vehicles, and workers’ compensation. However, depending on individual rating factors, the amount you pay for insurance can vary a lot.
Consider this: If you’ve been in a car accident or received speeding fines, your vehicle insurance will be higher than if you have a clean driving record. Similarly, if an employee has been seriously wounded at your company in the last year or two, you could expect to pay higher rates for worker’s compensation insurance.
By reducing the frequency and severity of claims, EHS software can help your company save money on insurance. In addition, several insurers offer discounts to policyholders who have a documented safety program. As a result, software can help you save a lot of money on insurance premiums and deductibles.
Delaying EHS software implementation may jeopardize your company’s reputation. Consider how an unintentional leak of harmful chemicals at a refinery could tarnish your public image. Or imagine how a product safety recall at a manufacturing plant could affect your reputation.
According to a World Economic Forum research study, more than 25% of a company’s market worth is directly due to its reputation. Once the harm is done, your company may take years to recover – if it recovers at all.
Preventing fires is clearly less expensive than putting them out. A good EHS software system can assist you in proactively managing risks that could harm your company’s reputation. It can also assist you in developing a strategy for coping with unforeseen situations that could damage your company’s reputation.
Your Key Takeaway for EHS Software
The advantages of purchasing EHS software far outweigh the price in the long term. Investing in EHS software now, even if it seems like a large step, is one of the smartest moves you can make for your company. You’ll see immediate improvements in staff productivity, as well as long-term improvements in safety, risk, and cost after implementing EHS software like CloudApper Safety.