News & Information Blog

In today's high-stakes workplaces, justifying safety investments isn't just good practice—it's essential for business survival. According to the Liberty Mutual 2025 Workplace Safety Index, employers face over $50.87 billion annually in direct costs from the top 10 causes of serious workplace injuries (based on 2022 data trends continuing into recent years). The National Safety Council estimates total work-related deaths and injuries cost the U.S. nearly $1.2 trillion yearly, including indirect losses like lost productivity and reputational damage.

Yet studies consistently show strong safety programs deliver impressive returns: investments in occupational health and safety (OHS) can yield 24%+ ROI on average (per WSPS research and similar benchmarks), with proactive measures reducing incident rates by up to 74% in organizations with robust training and tracking.

Return on Safety Investment (ROSI) helps bridge the gap between safety managers and business leaders. It compares the cost of preventing a hazard (abatement) against the potential costs if an incident occurs. At Simple Safety Coach, our integrated Safety Observations feature lets teams log near-misses or hazards, estimate abatement costs, forecast accident expenses, and calculate ROSI directly in the app—turning qualitative safety efforts into quantifiable business wins.

Why ROSI Matters More Than Ever in 2026

With OSHA's persistent Top 10 citations (Fall Protection leading for the 15th year in FY 2025 per NSC data), multi-site operations face rising scrutiny. Modern tools like AI-driven observations and mobile reporting make it easier to track leading indicators and prove value. ROSI empowers you to:

• Prioritize high-impact fixes
• Secure budget approval
• Demonstrate compliance and risk reduction

The 7 Types of Cost Estimates: Building Accurate ROSI Calculations

When entering abatement or potential accident costs in tools like Simple Safety Coach, use one (or a blend) of these estimation methods for credibility. Originally outlined by industrial hygiene expert Jeff Burton in a 2019 Synergist article (and still foundational today), here are the seven types with 2026 practical guidance:

1. Approximate (Rough or "Horseback" Estimate) Quick and low-effort—ideal for initial triage of a reported hazard. Example: "Replacing slippery flooring might cost $5,000–$10,000 based on similar past jobs." Use this early in Safety Observations to flag priorities fast.
2. Detailed The gold standard for accuracy. Involves itemizing every expense: materials, labor hours, contractor fees, production downtime, training, and permits. Example: For a ventilation upgrade, calculate supplier quotes + 40 employee hours at $50/hr + 2 days downtime at $X lost revenue. This method shines when pitching major investments to executives.
3. Equation-Based Relies on industry formulas or apps (e.g., OSHA risk models or vendor calculators). Caution: Verify inputs—black-box equations can mislead. In 2026, tools like our platform auto-apply simplified equations for common hazards (e.g., fall protection gear costs tied to site specifics).
4. Experience (Analogous or Engineer's Estimate) Draw from your team's or industry's past projects. "Last year's similar machine guarding abatement cost $15,000 across three sites." Great when historical data exists in your safety software dashboard.
5. Exponent (Scaling Estimate) Adjust past costs for size/scope differences using scaling factors (e.g., cost scales with capacity^0.6 for equipment). Useful for growing operations: "Doubling ventilation for a larger warehouse might increase costs by 1.5x, not 2x."
6. Source (Vendor/Supplier Quotes) Direct from manufacturers, contractors, or suppliers—highly reliable. Example: Get current 2026 quotes for respirators ($X per unit) or guardrails. Always document sources for audit trails.
7. Unit (Per-Unit Pricing) Breaks costs into rates: $/hour for labor, $/person for PPE, $/CFM for ventilation. Example: "Training 50 workers costs $200 per person." Easy to scale in multi-site environments.

Pro Tip: Blend methods—start approximate, refine to detailed/source as the abatement plan solidifies. In Simple Safety Coach, enter values per category (e.g., medical, lost wages, property damage) for potential incidents, then compare against abatement totals for instant ROSI insights.

Simple ROSI Example in Action

Hazard: Unguarded machinery (potential amputation).

• Estimated accident cost: $150,000 (medical $80k + lost productivity $50k + fines/insurance hike $20k).
• Abatement cost: $12,000 (guards + install + training).
• ROSI = (Avoided loss – Investment) / Investment = ($150k – $12k) / $12k = 1,150% (or $11.50 saved per $1 invested).

Our platform tracks these over time, showing cumulative savings and trends.

Ready to Calculate Your Own ROSI?

Simple Safety Coach makes it effortless: Log observations on mobile, estimate costs during investigations, and generate reports that prove safety's bottom-line impact.

Schedule a Free Demo Today – See ROSI in action for your team. Email: sales@simplesafetycoach.com

FAQs

• How often should I update ROSI estimates? Annually or after major changes (e.g., inflation, new OSHA rules).
• What if my team lacks budget expertise? Start simple—use approximate + source methods, then build detail.
• Does ROSI include indirect benefits? Yes—add productivity gains, morale boosts, and lower turnover for fuller picture.