How Raising Employee Morale Saves You Money

[fa icon="calendar'] Sep 14, 2015 4:00:00 PM / by Deborah Lechner

Every business owner understands the direct costs of doing business, the ones that can be clearly and easily laid out on a spreadsheet. When measures are taken to reduce those costs, the benefits are readily apparent: fewer workers injured on the job means fewer workers' comp expenses. Simple. However, there are many less obvious factors that impact the bottom line.

Employee morale is one of those indirect costs, and doing what you can to keep that morale high can definitely be of benefit to your bottom line. But if you can't measure it, how can you manage it? It turns out you can. Increased productivity, fewer sick days, decreased accidents, fewer injuries, and lower employee turnover – all of them proxies for the state of worker morale – are easily captured and readily examined.

Improving Morale In Your Workplace

So what are some effective methods for improving employee morale? Obviously competitive wages and benefits are a big factor, as is letting your employees know that they're appreciated, but you've probably already got these issues covered. A less obvious, but just as important, factor is workplace health and safety. According to OSHA, a good health and safety program benefits employee morale by providing the consistency and reliability necessary to build a strong, stable, and efficient workplace community, and workplaces with strong heath and safety programs are typically rated "better places to work" by employees.

By reducing on-the-job accidents and injuries, these programs create an environment that leads to more satisfied and productive workers and improves the quality of the goods and services those employees produce. When injuries do happen, workers return to work more quickly, and the improved morale promoted by a safe, healthy workplace tends to reduce absenteeism rates and improve employee retention. To illustrate these points, OSHA cites the benefits in specific cases where strong health and safety programs were implemented, including a Fortune 500 company that saw a 13 percent increase in productivity and a small plant with a 50-person workforce that saved more than $265,000.

Is a Physical Ability Test Program the “Missing Link” In Your Workplace Health And Safety Policy?

If your company is on the road to improving health and safety in the workplace but has not yet seen the benefits mentioned above, a physical ability testing program may be what you need to achieve them. A solid, evidence-based physical ability testing program can do a lot to improve the effectiveness of your overall workplace safety program. By making sure the people you’re hiring are up to the job  that is, physically capable of performing the essential functions of their jobs without undue stress, strain, and fatigue  you’ll build a happier, healthier workforce.

A proper physical ability test ensures that the right employees are placed in the right jobs, reducing risk of injuries caused by overexertion or fatigue. Employees that have proven themselves able to easily manage the physical demands of the job are more satisfied with their positions and more productive than those who struggle to meet those demands. They're also more likely to remain in your workforce long-term, lowering your employee turnover rate.

The bottom line here really is the bottom line: employee morale has far-reaching effects, both human and financial. Making the most of workplace safety boosts morale – and that can save you money. An evidence-based physical ability testing program can give you the edge you need to do both.

How much can you save on Workers' Comp costs

Topics: Workers' Compensation Costs

Deborah Lechner

Written by Deborah Lechner

Deborah Lechner, ErgoScience President, combines an extensive research background with 25-plus years of clinical experience. Under her leadership, ErgoScience continues to use the science of work to improve workplace safety, productivity and profitability.