No matter the price tag, the right EHS software should deliver more value than it costs. That’s true whether you’re in the market for safety software or are trying to gauge the effectiveness of your current system.
So how can you objectively measure the ROI of an EHS management solution?
Here are a couple of metrics that you can use.
A medically consulted work injury costs an average of $32,000 including wage losses, medical and administrative expenses, and employer costs.
EHS Management Software Can Help You Reduce:
In many cases, by preventing a single medically-consulted injury or illness, companies can see a return on their investment in EHS software.
Did you know? Studies have shown that $1 invested in injury prevention returns between $2 and $6.
The idea of calculating ROI for online training is to convert both training costs and benefits into a single value, e.g. dollars. This is actually great because you can make a direct comparison and come to a clear conclusion on the effectiveness of training.
A formula for calculating the ROI of online learning technology could look something like this:
When you've completed your research and vetted the solutions that would best fit your needs, then you need to show your stakeholders that your software selection warrants the investment. Convincing leadership to sign off isn’t always simple, though.
You’ll have better luck if you approach your request as a business case and emphasize what the software will do for the company.
Start with your total contract costs, then subtract any discounts you may have been able to negotiate with your vendor. Then consider the reduction of time and labor you and your team will save on reporting, training, conducting inspections, etc.
You should also be prepared to talk about the implementation process, learning curves, and other requirements.
Presenting a business case still might earn a no, but you’ll never get a yes without focusing on what’s in it for your company.