Each dollar invested in work environment gives two back

7 Oct 2014

Assessing the value of investments in the work environment is widely regarded as difficult. Quite simply because it is difficult to place figures on the benefit.

For example, what is it worth for the staff not to have headaches or skin irritation during their working day? The symptoms might not entail absence due to illness, but how you feel at work affects both motivation and effectiveness. If it does cause absences, it is naturally easier to calculate the costs. If that is the case, then it is not just the sick pay expense that should be included, but also the cost of any loss of production and for staff that have to be replaced.

A good workplace with a good work environment also usually influences how the staff perceive their employer. Good employers both attract and retain skilled staff. For many companies their staff are by far their major asset, and introducing and training new people takes time and costs money.

An international study conducted by the International Social Security Association (ISSA) External link, opens in new window., Germany's Social Accident Insurance (DGUV) External link. and Germany's social insurance institution (BG ETEM) External link, opens in new window.calculates both the costs and the benefits of investing in work environment measures. The results of the study show that it is within production that the greatest gains can be made.

Direct effects

Reduced risk
Increased awareness of risks
Reduction in behaviour and the number of accidents

Indirect effects

Improvements to the company's brand and corporate culture

The study's conclusion shows that each dollar invested in preventive work environment measures can be expected to deliver a return of 2.20 dollars. The report can be downloaded here: Link External link.