evaluation of the european strategy on safety and health at work ...

138 EVALUATION OF THE EUREVALUATION OF THE EUROPEAN STRATEGY ON SAFETY AND HEALTH AT WORK 2007-2012138safety, up to €4.81 is saved through reduced accident and disease rates, and lowerrates <strong>of</strong> absenteeism as working conditions improve. 153Costs and benefits <strong>of</strong> OSH measures at enterprise levelIn addition, studies suggest that money spent by enterprises on prevention effortsthat aim to reduce future accidents at work and occupational illnesses havesignificant benefits.Benefit-cost-ratiobetween 1.29 and2.18A new study published by <strong>the</strong> European Commission concludes that especiallywhen an enterprise brings toge<strong>the</strong>r several measures into a comprehensiveprogramme a positive return can be expected from investments in occupationalsafety and health. Based on an analysis <strong>of</strong> 401 cases <strong>of</strong> accidents at work and 56prevention projects in companies <strong>the</strong> benOSH study argues that developing andimplementing prevention measures should be considered as investments generatinga reduction or elimination <strong>of</strong> avoidable costs linked to accidents and ill-health. For<strong>the</strong> 56 prevention projects <strong>the</strong> benOSH study calculates an average benefit-costratiobetween 1.29 (<strong>the</strong> conservative assumption) and 2.18 (a more optimisticassumption). A project will be accepted when <strong>the</strong> benefit-cost-ratio is larger than 1because <strong>the</strong> benefits in economic terms are larger than <strong>the</strong> costs in economic terms.154, 155Return onPrevention ratio <strong>of</strong>2.2Up to 20 percentincrease in labourproductivity fromimproved OSHAno<strong>the</strong>r recent study, including 300 companies from 15 countries in Europe, Asia,North America and Australia, finds that <strong>the</strong>re are benefits resulting frominvestment in occupational safety and health in microeconomic terms, with <strong>the</strong>results <strong>of</strong>fering a Return on Prevention ratio <strong>of</strong> 2.2, i.e. for every €1 per employeeper year invested by companies in workplace prevention, companies can expect a156, 157potential economic return <strong>of</strong> €2.20.A third recent study from Eur<strong>of</strong>ound focuses on <strong>the</strong> link between quality <strong>of</strong> workand performance. One <strong>of</strong> <strong>the</strong> key findings is that health, safety and well-beingcontribute to improved performance through decreasing sickness absence andinsurance payments. Improvements in health, safety and well-being also increaseemployee satisfaction and decrease voluntary staff turnover. In companies which153 EU-OSHA - European Agency for Safety and Health at work (2011): How to createeconomic incentives in occupational safety and health: A practical guide, Workingenvironment information – Literature review, European Agency for Safety and Health atWork.154 European Commission (2011): Socio-economic costs <strong>of</strong> accidents at work and workrelatedill health. Key messages and case studies, Luxembourg.155 European Commission (2011): Socio-economic costs <strong>of</strong> accidents at work and workrelatedill health. Final report, Luxembourg.156 Bräunig D & T Kohstall (2011): The return on prevention: Calculating <strong>the</strong> costs andbenefits <strong>of</strong> investments in occupational safety and health in companies. Summaries <strong>of</strong>results, Research report, International Social Security Association, Geneva.157 Bräunig D & T Kohstall (2012): Calculating <strong>the</strong> International Retur non Prevention forCompanies: Costs and Benefits <strong>of</strong> Investments in Occupational Safety and Health, Finalreport, International Social Security Association, Geneva.http://projects.cowiportal.com/ps/A019055/Documents/3 Project documents/Interim and final report/Final report October 2012/OSH <strong>evaluation</strong>report_Final_submitted14 March 2013.docx