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Cost benefits of certification to OHSAS 18001
Rank: Forum user
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I am preparing a brief presentation to the H&S committee of an international organisation (a professional membership body with approx 1000 or so staff). Would any of you in similar sounding organisations be able to let me know what amounts of costs savings you gained (e.g. through lowered insurance premiums)?
Have you experienced any other cost savings?
Thanks very much,
Sheila
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Rank: Super forum user
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The potential savings would depend upon the level at which the organisation has implemented its health & safety management system and there is likely to be an initial cost increase to "resource it" . It is also speculative as to what extent one may save in potential enforcement action costs.
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Rank: Super forum user
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The liability insurance costs of a professional membership body are likely to be towards the lower end of the scale (as compared to construction, steel, fishing, quarrying etc). Any potential savings are therefore a small percentage of not much!
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Rank: Super forum user
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Me, I agree with Jay. My main customer has had 18001 and BSC 5 Star for two years and it's difficult to attribute any 'saving' in money terms.
No changes in insurance premiums. No improvements in production efficiences attributable to new safer procedures or machines. Costs of accidents may be reducing every year but the numbers aren't real and are based on an HSE 'model' calculation. Loss of production due to 'incidents' occurs/varies every year and can't measure savings on that.
Ask me what 18001 now COSTS the company every year and I could probably put a figure to that based on increased time spent on training, preparing and delivering toolbox talks, time of supervisors or operators writing new SOP's that we didn't have. Cost of management time having more frequent safety meetings, more review meetings, more internal audits, cost of the formal audits, costs of more department inspections, more training reviews, more RAMS reviews, more COSHH reviews, more preventative maintenance costs......
And they now employ me two days a week instead one day..... :o)
JohnW
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Rank: Super forum user
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One company I know are spending so much time on getting 18000 etc. and complying to its parameters they are now not really managing out on the front line & I have found that in many cases ensuring compliance to the standard is put in front of reality management
a company who I am now working with have all the standards yet their reality managent and the way they treat staff is very poor
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Rank: Super forum user
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JohnW, are you their consultant or employee?
If consultant, have you consulted with your client on whether to keep paying to maintain the badges?
If employee it is plainly in your interest to keep the work flowing.
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Rank: Super forum user
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David, I'm their their consultant for about 7 years now. They are a major roofing company (manufacturing and also some installation at hospitals, schools, football stadiums, major retail etc) they need the ISO and OHSAS badges and can afford them. Their safety budget I think is about £50k (not all me).
The badges do get them business which otherwise they might not, so the original poster Sheila can add that to her report, I have no figures but for them it could help to get several major projects to several £100,000+ a year.
John
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Rank: Forum user
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Hi all,
thanks for responding, it's much appreciated. Probably best to do a brief overview without any promises of noticeable cost savings.
ta again
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Cost benefits of certification to OHSAS 18001
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