There are significant productivity and efficiency savings if you have an automated and digital EHS program at your workplace.
In part 2 of the 3 part series on how environment, health and safety (EHS) management can save you money, we look at some of the productivity and efficiency savings you can achieve.
In order to make compliance a repeatable and sustainable process, your company should automate EHS as much as it can so that human-related costs can drop over time. Our experience is that the human cost is the largest chunk of compliance spending and going digital saves money. It reduces people’s efforts and the automation and its associated productivity and efficiency savings justify technology spending.
Having online risk capture and document workflows will help your organisation reap savings in efficiency while better managing your business and protecting its people, the environment and the business assets.
Some examples include:
- 15% of an organisation’s revenues are spent creating, managing and distributing documents – going digital can reduce this effortlessly;
- A study by the Gartner Group, estimated that it takes as much as 19 hours to create one document. If you are sitting there creating your EHS documents can your time be better spent and this activity outsourced? If you had to create just 10 Safe Work Procedures (SWP) for your plant and equipment, is it sustainable for you to dedicate 190 hours to that task? Even if it takes only 5 hours for you to develop 1 SWP, based on $40/hr salary, you have lost 5 hours of work plus cost the business $200 in salary. As a simple cost saving example, epar has a library of over 2,000 EHS digital documents and protocols and you can buy a digital SWP for the Use of a Skid Steer from the epar library for just $49. This example shows how much time and money you can save your business.
- According to a Price Waterhouse Coopers study, finding a lost document will cost a company $122 on average. There are no lost documents with a digital EHS platform. Documents and records are online, in the cloud, and backed up to a secure server network.
- It is also estimated that 7.5% of all company documents are lost completely. Let’s assume your company works with around 100 EHS documents. That would mean, about 8 of those documents are doomed to be lost, ultimately costing your company almost $1,000 plus the cost of recreating those lost documents.
- It has been estimated that searching for documents takes about 20% of an employee’s time. Let’s say you have 1 employee managing your paper based EHS program. Consider you pay them $60k in annual salary, that’s $12,000 every year in productivity lost by using a paper-based system. Productivity and efficiency savings can be achieved by electronically assigning and tracking your EHS documentation that your teams need, and importantly they are all locatable in second.
- Price Waterhouse Coopers also reports that on average, a company spends $25,000 to fill one file cabinet and an additional $2,100 a year to maintain that cabinet. How many filing cabinets full of paper do you have in your office?
How much time are you spending on creating reports on EHS to management? Automated digital reporting is the act of delivering reports containing relevant EHS information at specified intervals or after a triggered event. We have embedded this feature into the epar Reporting App so that users don’t have to spend the time finding and formulating the information themselves. An EHS report can now be auto-scheduled to arrive in your bosses inbox without you lifting a finger!
In Part 3 of this series, we will look at the injury costs savings you can achieve by with having a robust EHS program at your workplace.