Productivity and Cost
Productivity is a function of people, technology, and management strategies. Safety and health have a direct effect on the first two. Companies with a reputation for providing a safe and health workplace will find it easier to attract and keep the best people. Correspondingly, these talented employees will be able to focus their skills more intently on being on being productive rather than worrying about accidents or health problems. On the cost side of the issue, companies with a record of safe and healthy practices will be better able to reinvest in equipment upgrades than those who must divert funds into such nonproductive cost as medical claims, environmental cleanups, and safety and health-related litigation. As shown in figure 5-2, the more productive a company, the more competitive it can be in setting prices for its products.