How to Justify EHS Investment by Pinpointing Issues

How to Justify EHS Investment by Pinpointing Your Biggest Issues

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28 · 8 · 2024 by Claire Styles

Building a strong business case for new EHS software doesn’t start with listing useful features. It starts with showing leadership exactly what’s broken today and what it’s costing the company.

You need to clearly pinpoint the problems your current system creates and connect them directly to financial, compliance, and operational risks. That way, you’ll be in a stronger position to prove ROI and justify EHS investment.

Here’s how to uncover the gaps and frame them for leadership.

Step 1: Look at the Hidden Costs of “Business as Usual”

Before you pitch a new EHS tool, you need to ask yourself, “Why are we struggling with our current EHS processes?” Getting to the heart of the problem is the first step in building a strong case for change.

Map your health and safety processes end-to-end

Document each step of your health and safety processes. Who’s involved? Where do tasks stall? Where do incidents repeat? Pull in employee feedback to capture real pain points.

Then create a workflow or process map. This makes it easier to spot bottlenecks, weak points, and costs that leadership may not see day to day.

Put numbers to the problem

Next, put numbers to your findings—because leadership speaks in metrics. Select metrics to evaluate how well your current system is performing, such as incident rates. Use your historical data to establish a baseline “before” picture:

Incident and near-miss reports: Check how often incidents happen and how severe they are. Add up the costs, like medical bills, lost workdays, and any compensation payouts.
Inspection and audit findings: Look for patterns and problem areas from past inspections. This will help you estimate the costs tied to these issues, like fines or operational disruptions.
Regulatory compliance documentation: Calculate the financial impact of recent non-compliance, including fines, legal fees, and the cost of remediation.
Maintenance logs: Figure out the costs related to repairs, downtime, and any accidents caused by faulty equipment.

By analyzing this data, you’ll show leadership not just that issues exist, but exactly how much they cost.

Did you know: Workplace injuries cost U.S. businesses $167 billion and 75 million lost workdays in 2022.[1]. And indirect costs (like lost work time, equipment repair, and production losses) can be up to 20x higher.[2]

Step 2: Show the benefits of your new EHS tool

With your problems clearly defined, it’s time to turn your attention to the solution. What does the future look like with a digital EHS tool in place? You need to paint a picture of a more efficient, safer, and cost-effective workplace. To bring it to life, start by listing both the tangible and intangible benefits, such as:

Reduced incident rates: EHS software can help you drive down injury and illness costs by up to 20%.[3]
Lower workers’ compensation costs: With fewer accidents and claims, you can enjoy more stable, or even reduced, workers’ compensation costs.
Regulatory compliance: Better control of your EHS processes helps you steer clear of costly fines and legal headaches.
Stronger employee morale: EHS software helps create a safer work environment that keeps your team engaged, improves job satisfaction, and lowers turnover.
Higher productivity: Easy-to-use software helps your team enter information, follow up on tasks, and analyze data quickly, driving a 14% increase in productivity.[4]
Faster closure of action items: Automated reminders and workflows keep tasks moving.
Position yourself as a safety leader: Your commitment to high standards will boost your reputation with customers, investors, and regulators alike.

Investing in an EHS tool can make a big impact by preventing costly incidents. According to the ASSP, every $1 spent on safety can save your company at least $3 by reducing injuries, lost work, and extra admin tasks.[5] OSHA takes it a step further, reporting that companies with strong health and safety programs can slash injury and illness rates by 20% or more, earning back $4 to $6 for every $1 invested.[6]

Step 3: Link the benefits to your company’s core priorities

When you present the benefits of EHS software, you need to align them with your company’s top priorities. Your top priority is safety, but leadership often focuses on profitability, reputation, shareholder value, and growth. To make your pitch hit home:

Review your company’s mission and vision statements for clues about what leadership values most.
Talk to other department heads about what metrics got their projects approved.
Frame benefits in leadership’s language by focusing on productivity, compliance posture, brand reputation, or customer trust.

Example: Instead of saying, “This tool streamlines audits,” say, “This tool reduces audit preparation time by 80%, which frees resources and minimizes the risk of costly fines.”

Ready to strengthen your case?

By clearly showing the hidden costs of your current system, the measurable benefits of going digital, and the alignment with leadership’s priorities, you’ll create a business case leadership can’t ignore.

Download our EHS Business Case Guide for ROI stats, objection-handling tips, and a step-by-step playbook to build your pitch.