Unlock the true value of investing in your people

By Jennifer Coccimiglio

Workplace Safety & Prevention Services

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As technology continues to evolve and AI advancements transform how we work, Canadian businesses are contemplating how best to harness their benefits. Investments in innovative tools and machinery that will improve production and grow the business seem like an obvious win. However, investment in health and safety may be an even bigger win.


“If you aren’t currently investing in the health and safety of your employees, you’re leaving your business vulnerable,” says Kristin Hoffman, health and safety consultant with Workplace Safety and Prevention Services (WSPS). “You really can’t afford to overlook it.”


A workplace injury or fatality will devastate any company — especially a small business with five or 10 employees. “When a small business loses even one employee, it can have a significant impact on productivity and the ability to meet contractual obligations,” says Hoffman. In the midst of coping with a heartbreaking tragedy, your business has to find a way to move forward.
 

What is the cost of an injury?

In 2015, a Canadian landscaping company was fined $100,000 after a worker suffered a fatal fall in a parking lot. In 2019, another landscaping company was fined $45,000 after a worker fell off an extension ladder. The worker was using a chainsaw to cut branches from a tree when the ladder fell, also injuring another worker standing on the ground. In 2024, after a 20-year-old worker died after contacting an electrical wire while trimming a hedge, his manager was charged with criminal negligence causing death. 


When tragedies like these occur, fines and legal fees are just the beginning of the financial pressure a company may experience. According to a report from the Association of Workers Compensation Boards of Canada, the average cost of a lost-time injury claim was $47,238 in 2019. Indirect costs, such as lost productivity and recruiting and training new employees, was estimated to be at least twice the amount of direct costs. 


“Work will be delayed while an investigation takes place. A new employee may need to be recruited and trained. The company’s reputation may be negatively impacted. And all of this is happening while employee morale reaches a low point,” says Hoffman. “It can be very difficult for a business to recover from something like this.”
 

What’s your health and safety investment?

The Institute for Work and Health, an Ontario-based organization that specializes in occupational health and safety research, studied the return on investment (ROI) for Ontario businesses when they invest in health and safety. They took the average health and safety expenditures across 17 sectors and measured them against the financial benefits gained. Their findings showed a return ranging from 24 per cent to 114 per cent, depending on the sector. “A 24 per cent return would be a success for any investment,” Hoffman points out. “Essentially, an investment in health and safety is an investment in business continuity, which yields considerable returns.”


The expenditures used in the study included health and safety training, supervision, personal protective equipment, professional occupational health and safety services and capital investments related to improving health and safety. The average amount invested per employee across the 17 sectors was $1,303. For agriculture and forestry, it was slightly lower at $890 per employee. 


When determining ROI, researchers included the tangible and intangible costs described earlier. So, for approximately $890 per employee, you could save your company upwards of $50,000 by preventing an injury. When you factor in some of the more intangible gains, such as employee morale and job satisfaction, along with stable, quality production, it adds even more to the financial return. 
 

Invest in your people and reap the rewards

“Recruiting, training and retaining workers is no small expense,” says Hoffman. “Investing in your people by providing quality training, personal protective equipment and healthy working conditions will lead to greater job satisfaction. It will keep them coming back season after season.”


We know that healthy, competent workers contribute to stable, predictable operations, which is good for business. When you provide a physically and mentally healthy work environment, you demonstrate how much your employees are valued. “Creating a psychologically safe workplace that is free of mental harm is just as important as creating a workplace that controls physical safety hazards,” reminds Hoffman. 


Hoffman recommends starting with a detailed health and safety orientation for your workers, even if they are temporary. Review safe work procedures that address specific tasks and provide proper training on those procedures. “Any worker who will operate machinery or heavy equipment must receive training on the specific equipment they will use,” says Hoffman. 


The Orientation Handbook Generator is a great tool from WSPS to help you create the documentation you will need for training. Simply enter some information about your work, employees and the hazards they will encounter and within 15 minutes you will have a detailed health and safety orientation handbook. 


Depending on the type of work that will be done and where the jobsite is, you could consider training in working at heights, confined spaces, ladder safety, the Workplace Hazardous Materials Information System (WHMIS) and traffic control. Ensure workers have the personal protective equipment they need to work safely (e.g., safety boots, hearing protection, high-visibility vests). 


As technological advancements lead to safer ways of working, invest in that infrastructure for your employees. “If you’re looking for a guaranteed ROI, invest in health and safety,” says Hoffman. “It’s a win-win for everyone.”


If you have health and safety questions, contact WSPS at 1-877-494-9777 or fill out the form at wsps.ca/contact-us and a member of the team will contact you.