87% Say 2016 Safety Budgets Will Stay the Same or Decrease
Safety professionals can only do their jobs effectively with adequate resources, including sufficient funding. But safety budgets may be targeted by senior management if the company is looking to reduce its costs. And even when business is good, the company may not choose to increase the safety budget, preferring to spend money on other areas.
When we asked if you expected your safety budget to increase in 2016:
- 50% said your budgets will stay the same
- 37% said they’ll decrease
- 12% said they’ll increase by between 1-10%
- While just 1% said your budgets will increase by more than 10%.
In comparison, a new global survey of 312 EHS executives by independent research firm Verdantix found that 10% of firms will increase spending in 2016 by double digits and 21% will spend between 5% and 9% more next year. In fact, 75% of this survey’s respondents expect budgets to increase in 2016.
Other highlights from the Verdantix survey findings:
- 60% of respondents see incident management as a high priority, 59% put risk analysis as a high priority and 45% say the same for EHS auditing
- Training and hiring will see the biggest increases in spending in 2016
- Primary drivers of increased EHS budgets are operational excellence programs, CEO focus on sustainability and improved financial performance.
“EHS has traditionally been viewed as a function, which should deliver compliance at minimum cost” commented Verdantix CEO, David Metcalfe. “Our survey data show that this negative perception of EHS is changing. Thirty-six per cent of the EHS managers we interviewed state that their CEO believes EHS impacts short- or medium-term financial performance.”
So how do you get your CEO and other members of senior management to have this mindset toward EHS programs and budgets?
- A special report containing several case studies that you can use to get support for different kinds of health and safety programs and initiatives
- A case study that proves the financial benefits of participatory ergonomics programs
- 5 steps to take to prove the ROI on safety training programs
- Case studies that prove companies save money on wellness programs
- 10 ways to improve your OHS program in a down economy
- The financial benefits of going beyond mere EHS compliance
- How putting productivity ahead of safety hurts the bottom line.