THE ECONOMIC IMPACT OF WORKPLACE SAFETY PROGRAMS: A COST-BENEFIT ANALYSIS OF INVESTING IN OCCUPATIONAL SAFETY VS. COSTS OF WORKPLACE INJURIES

Workplace safety is a critical driver of operational efficiency and employee well-being, yet organizations often struggle to quantify its economic value. This study examines the cost–benefit dynamics of investing in occupational safety programs relative to the financial burdens associated with workplace injuries. Using quantitative analysis, industry benchmarks, and an applied case study, the research evaluates the return on investment (ROI) of proactive safety interventions. Findings demonstrate that comprehensive safety programs reduce the frequency and severity of workplace injuries while generating measurable financial benefits, including lower insurance costs, reduced absenteeism, and improved operational efficiency. Although safety initiatives require upfront investment, the results show that proactive interventions consistently outweigh injury-related costs and deliver substantial long-term economic advantages. The study further highlights the strategic importance of integrating safety management into organizational decision-making, emphasizing its role in enhancing economic performance, workforce sustainability, and organizational resilience.