Workplace safety remains a top priority for organizations across industries in 2024. In an environment marked by a constrained labor market and increasing expectations from both employees and regulators, companies are making significant strides to reduce accidents, minimize associated costs, and enhance their safety cultures. Earlier this year, we conducted a State of the Market Report alongside EHSToday. Based on a survey of 478 responses, the report offers a comprehensive snapshot of the current state of workplace safety, and indicators we can use to determine the future of EHS.
The State of Workplace Safety in 2024
Safety is a shared responsibility in many organizations, involving a diverse range of roles, including EHS professionals, operations managers, and plant managers. One of the key takeaways from the report is the significance of safety budgets. Despite economic challenges affecting companies globally, nearly a third of organizations have increased their safety budgets, while only 10% reported a decrease. This signals a strong commitment to prioritizing safety even in uncertain times.
However, the report also reveals that while organizations are maintaining or increasing their investment in safety, they are still facing significant challenges in improving safety performance. This includes struggling to stay on top of safety tasks, improve worker engagement, and effectively manage risk in increasingly complex work environments. Many companies are not fully leveraging available technology, particularly EHS software that could enhance their safety management efforts.
EHS Staffing: A Vital Component of Safety Success
EHS staffing levels are a crucial factor in safety program success, organizations with increased EHS staffing are more likely to meet their safety goals, particularly in areas such as recordable injury rates. Even though EHS staffing levels have largely stayed the same this year, companies that increased staffing cited reasons such as business growth, enhanced safety goals, and the need to address safety gaps.
On the other hand, organizations that have reduced their EHS staff often struggle to meet their safety targets. Only 6% of companies that cut back on EHS staff were able to meet their injury rate goals, highlighting the critical role of having adequate personnel to manage and execute safety programs.
Technology’s Role in Managing Safety
Over the last few years, technology has emerged as an essential tool in managing safety programs. The survey highlighted that a significant majority (83%) of companies are using technology to deliver safety training, with 59% using it for chemical and safety data sheet (SDS) management, and 57% using it for incident reporting and investigations.
However, there is still considerable room for improvement in adopting technology for other critical safety functions. For example, only 45% of companies use technology for hazard identification and risk assessments, and even fewer (27%) use it for managing work permits, which presents a major opportunity for improvement. Leveraging technology for these areas could help organizations proactively manage risks, identify trends, and improve overall safety outcomes.
EHS software offers a streamlined, data-driven approach to managing safety, allowing organizations to automate processes, track safety performance, and gain real-time insights into potential hazards. The survey suggests that companies that are fully utilizing these technologies are better equipped to mitigate risks, reduce downtime, and ensure compliance with evolving regulations.
EHS Standards: Certifying vs. Following
The report also explored the role of safety management systems and certification standards such as ISO 14001, ISO 45001, and ANSI Z10. While many companies follow the guidelines of these standards, fewer are formally certified. For instance, 30% of respondents reported following the ISO 14001 framework, but only 25% were certified. This gap suggests that while companies understand the value of safety standards, they may not be fully committing to the rigorous process of certification, which requires audits, documentation, and a higher level of accountability.
Certification to standards like ISO 45001, which is specifically focused on occupational health and safety management, has been shown to improve safety performance. Organizations that are certified often benefit from a more structured approach to risk management, greater engagement, and improved safety culture.
Metrics: Leading vs. Lagging Indicators
How the effectiveness of safety programs is measured is critical for ongoing improvement. The survey results show that most companies (89%) use leading metrics, such as safety audits, risk assessments, and inspections, to gauge the success of their safety management systems. Leading metrics focus on proactive actions, such as identifying hazards before they result in accidents.
Lagging metrics, on the other hand, measure the outcomes of safety programs, such as incident rates, lost workdays, and workers’ compensation claims. While these metrics provide valuable insights into past performance, they do not offer the same predictive power as leading metrics. Nonetheless, companies that use both leading and lagging indicators are better positioned to track safety performance comprehensively and benchmark against their peers in the industry.
Interestingly, the survey also revealed a lack of widespread adoption of impact metrics, which measure the broader business benefits of safety programs, such as increased productivity, reduced absenteeism, and improved employee engagement. Despite the potential of these metrics to demonstrate the return on investment in safety, 79% of companies are not using impact metrics. This presents a key opportunity for safety leaders to better quantify the value of their programs and secure greater support from top management.
Safety and ESG: An Increasingly Integrated Role
Workplace safety is increasingly being integrated into broader ESG initiatives. The survey found that 18% of organizations have safety teams leading their ESG efforts, while 29% report that safety is closely integrated with their sustainability programs. This trend highlights the growing recognition that health and safety are not only critical for regulatory compliance but also essential for meeting ESG goals.
However, not all organizations are yet aligning safety with their ESG strategies. One-quarter of respondents reported having no formal sustainability or ESG initiatives, suggesting that there is still room for improvement in integrating these two critical areas.
What’s Next?
The 2024 State of Workplace Safety report highlights the significant strides organizations are making to improve safety but also highlights areas for further growth. While companies are investing in safety programs, staffing, and technology, many are not fully exploiting the potential of EHS software, ESG integration, or adopting impact metrics to measure the broader business benefits of safety. Companies that commit to formal safety certifications, adopt both leading and lagging metrics, and leverage technology are more likely to create a robust safety culture that leads to reduced incidents, lower costs, and greater employee engagement.
Ultimately, the survey reveals a clear message – solid safety programs are the cornerstone of operational success, now and in the future. With plenty of room for improvement, we can expect to see organizations continue to implement health and safety as a strategic business advantage that ensures a sustainable future.
Looking for a deeper dive into the insights from our State of the Market Report? Check it out here.