If you’re on the hunt for new EHS software, 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. The thing is, leadership is focused on financial metrics. They value, well, value! That’s why demonstrating the return on investment (ROI) of your new digital tool is vital.

In theory, ROI is a simple calculation:

ROI (%) = (Total Benefits – Total Investment Cost) ÷ Total Investment Cost × 100

In practice, proving ROI for EHS software isn’t always simple. Many of the benefits are indirect, so it’s not always easy to put an exact price on them.

This guide walks you through how to highlight benefits, put a price on the cost of doing nothing, and make ROI crystal clear and directly relevant to your business.

Why safety pays off for business

Ideally, you’ll make your own ROI calculations, but there are other ways to get leadership’s attention. Start with this fact from OSHA: for every $1 invested in safety, companies save $4–$6 by avoiding injuries, lost work, and admin costs. With EHS software, many organizations see payback within the first year. [1]

From there, you can demonstrate the benefits of EHS software, with stats and benefits that leadership understands.

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] 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
• 25% faster identification and mitigation of potential 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] With manufacturers experiencing 800+ hours of downtime every year, 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

Step-by-Step: How to Calculate ROI for EHS Software

Industry stats help, but nothing beats numbers from your own business. Here’s a quick ROI framework you can adapt:

1. Start with direct savings

Begin by listing the materials, tasks, and people’s time that will be impacted by the new tool. For each, compare the current costs with what they’ll be after you’ve implemented the tool. For example, how long does it currently take to complete a task, and how much quicker will it be with the new system?

Multiply the time saved by the hourly rate of your workers to calculate savings for each task.

2. Don’t forget indirect savings

Next, think about the less obvious benefits. Will the software free up your team to focus on higher-value tasks instead of repetitive admin? Could it reduce downtime by minimizing the risk of injuries?

Estimate the value of these benefits and add them to your total savings. They may be harder to quantify, but they’re just as important.

3. Calculate your total investment cost

Gather quotes from software vendors and make sure you’re clear on all the costs—licensing, implementation, customization, training, and any new equipment or technology you’ll need. These will be your total investment costs.

4. Calculate your net cost savings

Now, take your direct and indirect savings and subtract the total investment cost. This will give you your net cost savings.

5. Determine your EHS Software ROI

Now it’s time to calculate your ROI using this formula:

 

ROI = (Cost savings from step 4) ÷ (Investment cost from step 3) x 100

 

Remember to keep your calculations simple and aligned with your organization’s priorities.

Ready to secure leadership buy-in?

When you can show both the hidden costs of doing nothing and the tangible ROI of going digital, your case becomes hard to ignore. You’ll not only prove that EHS software cuts costs—you’ll show how it drives efficiency, improves safety, and strengthens your company’s reputation.

Download the full EHS Business Case Guide for ROI templates, objection-handling strategies, and ready-to-use data points to strengthen your pitch.

 

 

Sources

[1] OSHA, Business Case for Safety and Health – Overview

[2] ASSP, The Return on Investment for Safety, Health, and Environmental (OSH) Management Programs

[3] OSHA, OSHA Civil Penalty Amounts Adjusted for 2024

[4] Aberdeen Group, Environment, Health and Safety: Going Beyond Compliance

[5] ASSP, Safety ROI- Return on Investment

[6] Aberdeen Group, Environment, Health and Safety: Going Beyond Compliance

[7] Pingdom, Average Cost of Downtime per Industry

[8] Antea Group, EHS Manager’s Guide: 7 Tactics for a People-First Workplace