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Return on Investment for Ergonomic Programs

November 28th, 2011

Did you know that ergonomic programs can do more than just decrease injury rates? The State of Washington Department of Labor & Industries with the Puget Sound Chapter of the Human Factors and Ergonomics Society (HFES) published results from over 250 case studies showing the impact of ergonomic programs on businesses. They found that on average ergonomic programs do impact injury rates and workers compensation by the following amounts:

  • Decrease Work-Related Musculoskeletal Disorders (WMSDs) by 59%
  • Decrease Incidence Rates due to WMSDs by 65%
  • Decrease lost workdays by 75%
  • Decrease restricted workdays by 53%
  • Decrease Workers’ Compensation costs by 68%
  • Decrease cost per claim by 39%

They also found that ergonomic programs impact the business in other ways as well. They found that on average ergonomic programs:

  • Increase productivity by 25%
  • Decrease labor costs by 43%
  • Reduce scraps and errors (improve quality) by 67%
  • Reduce turnover by 48%
  • Reduce absenteeism by 58%
  • Have a payback period of 0.7 years
  • Show a cost : benefit ratio of 1:45.5

There are several tools available for free online which can show you the potential Return on Investment (ROI) for your ergonomic solutions. The Puget Sound Chapter of the HFES has a very good tool listed on their website  and Cornell University also has an excellent ROI calculator.

 

1 Comment »

  1. [...] There is an increasing focus on quantification of the return on investment for ergonomics programs. Ergonomics consulting firm EORM has posted a helpful piece on the topic summarizing results from a recent study by the State of Washington Department of Labor & Industries with the Puget Sound Chapter of the Human Factors and Ergonomics Society, which you can find here. [...]

    Pingback by ROI for Ergonomics Programs | Equipois Blog — April 24, 2012 @ 6:18 pm

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