If you’re on the hunt for a new digital EHS tool, you’ve probably been busy building a business case to present to senior leadership. After all, you’ll need their buy-in to secure the budget. As we’ve discussed in our recent blog series, leadership is focused on financial metrics. They value, well value! That’s why demonstrating the return on investment (ROI) of your new tool is vital.

In theory, ROI is a simple calculation:

    ROI (%) = (Total Benefits - Total Cost of Investment)
    ---------------------------------------
           Total Cost of Investment
                    × 100

But when it comes to EHS software, it can be difficult to demonstrate. Many of the benefits are indirect, so it’s not always easy to put an exact price on them.

This guide will walk you through how to highlight the benefits of your new EHS tool, assign a cost to not having one, and make the ROI crystal clear and directly relevant to your business.

How is safety good for business?

Ideally, you’ll make your own ROI calculations, but there are other ways to show senior leaders just how much safety can boost the bottom line. Grab their attention with this fact from OSHA: for every $1 invested in safety, companies save at least $4 to $6 by preventing injuries, illness, lost work, and extra admin tasks. With EHS software, many organizations see payback within the first year.[1]

Then demonstrate the benefits of a digital EHS tool, including industry stats to back them up:

Cost savings

• Fewer incidents: You’ll see fewer workplace accidents, which means cutting down on legal fees, medical bills, and lost productivity. In fact, strong EHS management can help you lower injury and illness costs by 20%.[2]
• Lower workers’ comp costs: A safer workplace means fewer workers’ compensation claims, which can keep your insurance premiums stable or even reduce them.
• Better compliance: Staying compliant helps you dodge ever-increasing fines. OSHA upped penalties again in 2024, with serious violations now costing up to $16,131 each.[3]
• Less admin: Automating your EHS tasks can lead to a 15% drop in operational costs.[4]

Productivity improvements

With an EHS management system, you can see a 14% increase in productivity.[5] Automating reporting, auditing, and training makes everything run smoother. Companies have reported:

• 50% more near-miss events reported and resolved
• 61% more corrective and preventive actions tracked and completed
• 80% fewer open or overdue actions
• 80% more actions completed each shift
• 25% faster identification and mitigation of potential risks
• 20% fewer incidents from unidentified risks

Revenue gains

• Better reputation: When you prioritize safety and environmental responsibility you boost your brand’s image among customers, investors, and regulators.
• Greater opportunities: Companies known for strong safety practices are more attractive to clients, partners, and stakeholders, opening doors to new opportunities.
• Loyaler customers: Safe and responsible practices build trust, making it easier to retain your customers.

Operational excellence

• Fewer costly disruptions: In manufacturing, downtime can cost about $260,000 per hour.[6] And, with manufacturers experiencing approximately 800 hours of downtime every year due to maintenance and other issues, the costs add up fast.[7]
• Better decision-making: Real-time safety data gives you the insights you need to make smart, informed decisions that boost performance.

Happier workers

75% of workers say that feeling safe at work is really important to them.[8] So it’s little wonder that when your workplace is safe, you can expect to:

• Boost morale, engagement, and productivity.
• Attract top talent.
• Keep skilled workers, cutting down on turnover costs

Quick guide to calculating the ROI for your new EHS tool

ROI =  ( Cost savings from step 4 )
         -------------------------
        ( Investment cost from step 3 ) 
                    × 100