If companies understood the total cost of their safety culture—including direct, indirect, and consequential losses— we honestly believe safety would be recognised as a crucial asset, not an inconvenient expense. Traditionally, safety is often viewed as a "necessary cost" in business, but a closer look shows that cultivating a resilient safety culture can drive significant savings and efficiency.
At Safety Collaborations, we see safety as a fundamental part of an organisation’s DNA, a core pillar supporting a more efficient operation. Building this foundation involves weaving safety into every business layer, from leadership to frontline teams. It’s about changing the way people think about safety, where a commitment to long-term safety and resilience shapes daily decisions.
Calculating the True Cost of Safety
Safety costs go beyond direct expenses like equipment repairs and medical fees. Indirect costs—such as lost production, additional supervision time, temporary labour, and reputational damage—can add up to substantial figures, often overlooked but crucial for understanding safety’s real financial impact. Our Cost of Safety Culture formula helps organisations assess these factors, revealing the true impact of incidents and areas needing improvement.
This calculation—factoring in workforce size and the productivity losses involved—often exposes a financial reality that is hard to ignore. With a clearer view of these costs, companies can take the necessary steps toward meaningful safety improvements.
Focusing on “Blue Money”
Shifting focus from simply reacting to incidents (what we call “red money”) to a proactive safety strategy enables businesses to capture substantial ongoing savings—what we term “blue money.” Blue money represents what could/should have been spent to avoid incidents and operational disruptions and improve operational efficiency, benefiting financial health. Our podcast episode, Being Proactive: Red, Green & Blue Money - It’s Not What You Think, explores how this proactive approach transforms safety from a financial burden into a driver of savings and stability.
Turning Insights into Action
Safety Collaborations guides organisations on their journey toward a proactive safety culture, offering services from safety culture assessments to leadership training. Our approach delivers measurable results, helping companies make informed safety decisions and embed a resilient safety culture into daily operations. Working with us, your teams will develop skills to manage risks proactively, making safety an integral, value-adding part of your business.
Ready to See the Difference?
Investing in your safety culture isn’t just about reducing incidents; it’s about building a resilient organisational culture, allowing your organisation to operate smoothly without unexpected setbacks. Visit our website,
www.safetycollaborations.com, or explore our podcast,
https://safetycollaborations.com/being-proactive-red-green-blue/, to learn more about our approach. Safety Collaborations is here to support your journey, helping you turn your safety culture into an asset that drives both performance and savings.
Take the next step toward resilience—contact us today to discuss how we can support you. Email Nuala directly at nuala@safetycollaborations.com
to receive a copy of our Cost of Safety Culture formula. Making the true cost of your safety visible may seem like a scary exercise, but you can’t fix what you can’t see, and this financial exercise is a great place to start.