We’ve all heard the saying, “Don’t put off until tomorrow what you can do today.” Yet we’re all guilty of procrastinating from time to time. We put off doing laundry until we run out of fresh shirts, or wait until the night before a big meeting to create a Powerpoint.
In the same way, many companies put off purchasing EHS software even though they know they need it. They postpone a decision until next quarter, next year, or “the future”. Sometimes, new software gets put on the back burner because there’s no room in the budget. Or because of fear of the disruption a new system might cause.
Whatever the reason, it’s worth taking a moment to consider the cost of doing nothing. What risks is your organization exposing itself to if you don't purchase EHS software? What opportunities are you missing?
More often than not, doing nothing is the most expensive action of all. Below, we’ll look at five reasons why putting off EHS software is costing you time and money.
1. Lost time/productivity
Using the wrong tools wastes time and hurts employee productivity. According to a survey by West Monroe, the average manager spends up to half their workweek on administrative tasks. Instead of focusing on the big issues, EHS directors are forced to waste time transferring data between spreadsheets, tracking down documents, and compiling reports. And if you employ consultants, you’re potentially paying hundreds of dollars per hour for a highly skilled expert to perform manual data entry tasks. Over the course of a year, the cost of this lost productivity is staggering.
Good EHS software solves this problem by helping your team be more productive. With software, many of the mind-numbing tasks that waste your team’s time can be automated. You’ll immediately notice a difference in how much time employees spend on administrative tasks. Many organizations see up to a 50% reduction in time spent on common tasks like data entry and reporting when using Perillon.
2. Accident costs
The cost of a single accident can easily outweigh the cost of purchasing new software. On average, a work-related injury costs companies $39,000 while a death costs $1.15M, according to the National Safety Council. In the case of an environmental incident, damage, fines, and remediation costs can be many times that amount.
Companies that use EHS software are in a better position to prevent incidents and injuries. They’re able to anticipate and respond to potential risks before they cause serious damage.
EHS software can also help shorten response time during an unplanned event such as a chemical spill or security breach. A swift response can help limit damage to people, property, and the company’s reputation. In some cases, regulators may be more lenient with fines and penalties if you can prove that you acted quickly to remedy the situation.
3. Insurance premiums
Paying for insurance on buildings, vehicles, and worker’s compensation is a cost of doing business. However, the actual amount you pay for insurance can vary widely based on individual rating factors.
Think of it this way: If you’ve had a car accident or speeding tickets, you’ll pay more for your car insurance than if you had a clean driving record. Similarly, if an employee was severely injured at your company in the last year or two, you should expect to pay a higher rate for worker’s compensation insurance. On the other hand, if you maintain a good safety record, you’ll likely benefit from a better rate.
Implementing EHS software can help your organization save on insurance costs by minimizing the frequency and severity of claims. What’s more, many insurers reward policyholders having a documented safety program. In this way, software can dramatically reduce the amount you spend on insurance premiums and deductibles.
Putting off EHS software can also put your business’ reputation at risk.
Consider how an accidental release of toxic chemicals at a refinery could hurt your public image. Or how a product safety recall at a manufacturing plant could harm your brand.
According to a study by the World Economic Forum, on average more than 25% of a company’s market value is directly attributable to its reputation. Once the damage is done, it can take years for your organization to recover — if it recovers at all.
Clearly, preventing fires is cheaper than putting them out. A good EHS software system can help you proactively manage risks that could lead to reputation damage. It can also help you to establish a plan for dealing with unforeseen events that could tarnish your corporate image.
In the long run, the benefits of purchasing EHS software far outweigh the costs. Though it might feel like a big step, investing in EHS software now is one of the best decisions you can make for your business. You’ll see immediate returns on employee productivity, with long-term gains in safety, risk, and costs. Perillon customers typically see an ROI of 3-5X their investment, and a payback within 12 months.