We’ve all heard the saying “a penny saved is a penny earned”.
And while that’s true, cost-cutting measures often come at a price. Traditional tactics like laying off employees, reducing pay, and closing facilities can cause you to miss out on new opportunities and ultimately do more harm than good.
However, that’s not to say there aren’t plenty of possibilities to reduce costs. In fact, you can save a substantial amount of money just by using EHS software! EHS software can pay for itself in under a year, and keep saving you money long after that.
Let’s look at six ways EHS software can help reduce costs and boost your bottom line.
1. Avoid accidents
Workplace accidents are expensive. From medical costs to workers compensation to administrative expenses, and productivity losses, injuries can cost you a lot of money. A single accident costs on average $41,000 according to the National Safety Council.
But, when you have an EHS software system in place, you are able to prevent accidents from happening in the first place. You can capture information about near-misses before they evolve into more serious problems. Ensure that employees have received the proper training, reducing the potential for accidents caused by untrained staff. And, should an incident occur, you can automatically notify management, trigger an investigation, and integrate preventive and corrective action plans to reduce the risk of future occurrence.
2. Reduce regulatory fines & penalties
Some states and federal agencies charge fees for violations of safety and environmental rules, or for failure to meet reporting deadlines. An organization that uses EHS software can significantly lower the potential for missed compliance deadlines and non-conformances, in turn reducing the amount spent on fines and penalties. Not only that, but having a strong compliance track record decreases the chances of being targeted for inspections and enforcement actions, thereby avoiding the costs and penalties associated with a violation.
3. Lower insurance premiums
Unexpected events can happen at any time, so you’ll understandably need to insure your facilities, equipment, and workers. But the amount you’ll pay for insurance can vary widely from one company to the next.
If you do have an accident or incident, you’ll pay a hefty premium for insurance since your company is considered a higher risk. You can lower your expenses by adopting an EHS software system, which helps you proactively identify hazards and minimize the potential for injuries and property damage. Over time, this can have a significant impact on your accident rates and insurance costs.
4. Increase productivity
EHS software helps your employees organize their daily work. Everything from tasks, documents, deadlines are all stored in a central location for easy retrieval. Information can be shared easily between need-to-know staff without the back and forth of email.
When people don’t have to run around looking for information or documents, they’re able to get things done more accurately and efficiently. In fact, many teams are able to reduce the time spent on administrative tasks by up to 50% with EHS software. That leaves them with more time to focus on high-value tasks that add to your business’ bottom line. Software can also reduce the number of billable hours consultants spend on administrative tasks, which in turn saves your organization money.
5. Reduce travel and administrative costs
While travel was greatly reduced during the pandemic, EHS staff typically spend a lot of time traveling to complete audits and inspections. When you consider the cost of airline tickets, rental cars, hotels, food, and other expenses, it all adds up quickly.
By using mobile EHS software, organizations can reduce the need for corporate staff to travel on-site. Inspections and audits can be assigned to someone at the facility and completed on a mobile device using standardized pre-built inspection forms. Then, the results can be synced to the centralized system for analysis and reporting. Instead of spending time on the road, your employees can spend more time working on the things that contribute to your business’ growth.
6. Optimize operational performance
When you have EHS software in place, it tells you all about your water, waste, and energy usage related to production. For example, your software can tell you which processes and equipment use the most energy.
When you know exactly where your resources are going, you can use them more efficiently. With the help of software, you can compare usage across your organization to discover opportunities for improvement. Set KPIs and track progress toward cost reduction goals. And, using that information, reduce energy and water usage while maintaining production output. All of this will help you reach your ESG goals and save your company money in the long run.
Cut costs with EHS software
When you’re in the position of needing to cut costs, it can be difficult to justify spending money on new tools and software. However, EHS software can actually help save your company money by reducing administrative burden, increasing operational efficiency, and preventing unwanted events. The best EHS software will return many times what you paid for it.