Understanding the research behind Hovmand's Care Calculator

Investing in Occupational Health and Safety (OHS) measures is not only a compliance or ethical decision, but also a strategic financial choice with significant positive impacts on employee well-being and company profitability.

A comprehensive international study of 26 cases demonstrated that in 19 of these, businesses recouped their investment in OHS measures in less than a year. On average, companies made back 214€ per worker in the first year, with these savings attributed to reduced sick leave, increased productivity and quality, and lower medical costs*.

In 2023, a follow-up study further reinforced these findings, showing that for every euro spent on OHS, companies saw a 1.24€ return within the first year – the so-called "Return on Prevention" (ROP)**.

These returns cover both direct benefits, such as fewer work-related injuries, and indirect benefits like improved employee retention and morale.

The studies collectively highlight that investing in OHS is a financially sound decision, leading to a more competitive, prosperous organisation.

Though, implementing these safety measures can face internal and external barriers. These include strict legal rules, a lack of knowledge about Occupational Health and Safety (OHS) among management, and not having enough funding.

Especially one barrier is dominant:

Calculating the direct financial benefits of safety investments can be challenging, hard to define and somewhat abstract, which makes it difficult to argue the value of such investment.

However, using insights from the mentioned studies, Hovmand has created a calculator. This tool simplifies the process, enabling you to precisely determine the amount of money your company can save by investing in prevention measures such as a Hovmand lifter. 

What do the areas of cost savings cover?

Cost savings through avoided sick leave

Reducing sick leave directly saves money by decreasing the need for temporary replacements or overtime payments for other employees to cover work. Consistent staff presence ensures steady workflow and avoids disruptions, maintaining the regular pace of operations. Fewer absences also reduce the administrative burden of managing leave and reallocating tasks. To highlight some examples, the companies from the studies experiences decreases in injuries, reduction in sick leaces, reduction in low-back injuries and pain, less muscle fatigue and less muscoloskelatar injuries*.

Cost savings through productivity and quality increase

A healthy workforce is more productive and produces higher quality work. Healthy employees are more focused, make fewer errors, and demonstrate greater efficiency in their tasks. This leads to better outcomes, which can attract more clients or customers, thus increasing revenue. Enhanced productivity also means that goals can be achieved with fewer resources and less time, contributing to a more efficient cost structure. In the research, a company experienced 30 hours less overtime per week, and another company experienced a productivity increase of 10 %*.

Cost savings through avoided medical costs and other costs 

By preventing work-related injuries or health issues, a company can save on direct medical costs such as insurance claims, worker’s compensation, and rehabilitation expenses. 

The positive effects of implementing preventative measures

Occupational Safety and Health (OSH) measures have a wide range of positive effects on both the physical and mental health of workers.

This is made clear by the three examples we have selected in this article. Read along – maybe you can relate to the issues or solutions in the stories. 

The cost of workplace accidents and diseases

In this article, we delve into the cost of work accidents and diseases and detail how implementing preventative measures like Hovmand lifters can help.