Plumas News reports that measures taken to improve employee safety have resulted in workers compensation cost savings for Plumas County. “We have good news that we’re saving money,” Pat Bonnett told the supervisors during their Feb. 9 meeting. “We’ve probably saved over $1.8 million in workers compensation claims.”
In 2009-10, the county paid $1.85 million in workers compensation, and by 2014-15 that number had dropped to $117,504.
Bonnett, who is the county’s safety officer, presented the information to the board with Roberta Allen, the county’s treasurer and risk management officer. Bonnett said the savings reflected the emphasis placed on employee safety.
Supervisor Lori Simpson said the numbers show that the “active safety program instilled in the county” is working.
Bonnett attributed the program’s success to the department heads’ commitment to making the workplace safe for their employees.
This report is confirmatory of longstanding industry findings. On August 29, 2001, Liberty Mutual Insurance Company released a report titled: A Majority of U.S. Businesses Report Workplace Safety Delivers a Return on Investment. The Liberty Mutual survey shows 61 percent of executives say $3 or more is saved for each $1 invested in workplace safety.
OSHA’s Office of Regulatory Analysis has stated: “our evidence suggests that companies that implement effective safety and health cans expect reductions of 20% or greater in their injury and illness rates and a return of $4 to $6 for every $1 invested…”
In its 2012 Workplace Safety Index, Liberty Mutual estimated that employers paid almost $1 billion per week for direct workers’ compensation costs for the most disabling workplace injuries and illnesses in 2010. Employers that implement effective safety and health management systems may expect to significantly reduce injuries and illnesses and reduce the costs associated with these injuries and illnesses, including workers’ compensation payments, medical expenses, and lost productivity. In addition, employers often find that process and other changes made to improve workplace safety and health may result in significant improvements to their organization’s productivity and profitability.