When it comes to investing in safety management software for your business, one of the primary considerations is ROI – or return on investment. Many business owners and managers see safety software as an up-front expense with no tangible benefits, but this isn’t the case.
With a little bit of planning and understanding, it’s relatively easy to determine the ROI of safety management software and how it can positively impact your business.
Calculate direct savings from the investment for materials and employee time, current (paper-based) and future (using software)
While there is an upfront cost for safety inspection software, there are also ongoing costs for conducting inspections the old-fashioned way with paper and pencil. Safety inspection software doesn’t require any paper or pencils – two things that need to be constantly replenished.
While this might seem like a small and insignificant expense, over time and depending on the size of your business, this can add up to significant cost. In addition to the cost of materials, you also need to consider storage costs and the employee time required to manage paper-based records.
Calculate Indirect Savings from the use of the investment in Safety Program Software
Conducting safety inspections manually takes a lot of time, which could be better spent on other tasks. Employees can complete inspections more quickly and efficiently by using safety inspection software. This leads to increased productivity and cost savings for your business.
Another indirect cost saving that you may experience is a reduction in employee sick days. When employees feel confident that their workplace is safe, they’re less likely to take time off due to illness or injury. This can lead to increased productivity and fewer lost workdays due to accidents.
You may also find that safety inspection software helps you identify potential hazards before they cause accidents or injuries. By spotting these hazards early, you can take steps to mitigate them and reduce the likelihood of an incident occurring. This can save your business money in insurance premiums and other costs associated with accidents and injuries.
Determine the cost of the Software Safety (Investment)
The first step in determining the ROI of safety management software is to calculate the cost of the software itself. This includes the initial purchase price and any recurring costs such as subscription fees or maintenance costs.
Next, you’ll need to factor in the cost of training your employees to use the software. Working with a company that provides specialized training services could help save time and money in this area.
Finally, you’ll need to consider the opportunity cost of using safety management software. This is the value of the time and resources you’ll invest in using and maintaining the software.
Calculate the Total Cost Savings
Now that you know all of the costs associated with safety management software, you can begin calculating the total cost savings. To do this, simply subtract the total cost of using safety management software from the total cost of not using safety management software. This will give you your total cost savings.
For example, let’s say the total cost of not using safety management software is $5,000 per year. The total cost of using safety management software, including the purchase price, subscription fees, training costs, and opportunity costs, is $3,000 per year. In this case, the total cost savings would be $2,000 per year.
In making your calculations, make sure you consider all of the incidentals that could impact your calculations so that you can make sure you’ve got an accurate picture. Now that you know how to calculate the ROI from safety management software, you can decide whether or not it’s right for your business.
How Field Eagle can help with your ROI
Field Eagle is customizable Safety Management and Field inspection software that can be made to fit your organization. Trying to adapt to new software can be costly, and slow. We take a different approach by adapting to your systems, or working independently, as needed.