Last month, we explored how to effectively pitch an EHS system to your co-workers and boss, focusing on the broader benefits of an EHS system, including boosting efficiency, maintaining compliance, limiting liability, enhancing facility safety, and promoting a positive public image. Showing skeptics how each of these individual points adds value to your company can be highly effective. However, to make an even more convincing case, you may need to provide more detailed information on how these benefits create financial returns for the company.
That’s why, this month, we are focusing on the more direct monetary return on investment (ROI) from implementing EHS software. A Verdantix ROI analysis of EHS software found that companies implementing EHS systems for over five years achieved an average ROI of 239%.[1] In light of this, it is clear why companies continue to increase their investments in EHS systems.
A 2022 global survey found that 52% of firms already possessing an EHS system planned to increase their EHS budget that year.[2] This statistic is evidence of the growing awareness of the ROI that comes with increased investment in EHS services.
More specifically, EHS systems generate ROI through increased efficiency for workers, resulting in decreased time and money spent on compliance issues, as well as a reduction in accidents. Data is more accessible when managed through an EHS system, allowing employees to complete their tasks in shorter timeframes. The exact ROI from this benefit varies from company to company. However, emphasizing how much your company spends on wages in any given hour can help stress the value of every hour saved by utilizing EHS software.
Digital training from EHS software can also decrease company spending. A 2022 market insight study examined accidents and injuries at Walmart before and after the implementation of EHS digital training. The study found that recordable accidents decreased by 54%, and lost workdays due to injury decreased by 52%.[3] Consider using average hourly wages at your company to demonstrate the money these percentage decreases could save.
The same study also produced evidence that EHS mobile applications, such as the one Chemical Safety Software offers, simplify the process of transitioning to an EHS system. This can save time and resources, and boost ROI, making it a valuable feature to look for in an EHS system.
The reputational benefits of implementing an EHS system also carry ROI value through attracting customers and more valuable employees. Current employees choosing to stay on because of the safety and organizational benefits of the EHS system also results in savings on recruiting and onboarding.
As mentioned last month, EHS ROI depends in part on which system you select and its suitability for your company. A 2024 global EHS readiness report found that companies leveraging advanced EHS systems spend about 30% less on incident expenses than those using less advanced EHS systems. Chemical Safety Software’s advanced system provides expansive capabilities and is fully customizable to meet your organization’s specific needs. When demonstrating EHS ROI, remind your co-workers or boss of the added value of selecting a quality provider like CSS.
Next month, we will further narrow our focus to one of the most valuable elements of EHS systems, mobile capabilities, and how they are shaping safety culture.
[1] Verdantix, The Business Case for EHS Software, 19 March 2018.
[2] Verdantix, Global Corporate Survey 2022: EHS Budgets, Priorities and Tech Preferences, 26 March 2022.
[3] Verdantix, Market Insight: 10 EHS Technologies With a Rapid Financial Return, October 2022.