Introduction

Environmental, health, and safety (EHS) performance and operational efficiency are connected and it’s crucial to think about them together. Having an understanding of how the two connect can make you more successful than your competition. Putting appropriate technology in place can secure your spot as a leader in the industry you work in. What was once a siloed aspect of operational management is now seen as integral to corporate performance. 

The connection between EHS performance and operational efficiency has an array of benefits. Those who implement it properly can ensure the future success of their business and position themselves as true leaders in their field. It’s an excellent way to move forward for any organization. 

Based on the Workplace Safety Index 2021 from Liberty Mutual, nonfatal workplace injuries led to American employers paying about $1 billion each week in compensation costs for workers. The National Safety Council also notes that work-related injuries and deaths have cost individuals, employers, and the nation about $171 billion (in 2019). Beyond these compensation costs, accidents can also create a loss of productivity and medical expenses. 

Compromised safety and health performance has many consequences, including lower retention rates, negative corporate culture, and decreased employee morale. It can also lead to fines from claim costs, lawsuits, and non-compliance. A brand with a negative environmental and safety record, exacerbated by instances of serious incidents, injuries, and fatalities, can also decrease morale and cause the loss of public trust and customers. 

EHS is directly related to many operational areas, such as quality management, assets, energy, and more. In a world with social media, sentiment analysis, the Internet of Things (IoT), and artificial intelligence all around us, EHS has changed to fit the culture. It’s essential to use the right tools to outperform and compete effectively.