Effectively Measuring the ROI of Your MSDs Prevention Actions
In 2017, the direct cost of musculoskeletal disorders (MSD) for companies amounted to nearly two billion euros through workplace accident and occupational disease contributions. Certainly, prevention represents a cost, but not taking action exposes companies to even greater costs and risks. For companies looking to prevent TMS, the challenge lies in ensuring the effectiveness of their prevention actions. How can this be achieved? This is where ROI comes into play.
Proud of our years of experience alongside companies of all sizes in combating TMS among their employees, our ergonomic experts explain how to calculate the return on investment (ROI) of your prevention policy. After reading this article, ROI will no longer hold any secrets for you!
ROI, an Indicator to Measure the Effectiveness of Your Prevention Actions
What is ROI?
ROI, Return On Investment, is an indicator that measures the profitability of an action taken by a company.
Originally used in marketing campaigns, ROI is also applied in the fields of ergonomics and health prevention. In this context, ROI is used to calculate the effectiveness of your prevention actions. Specifically, it’s referred to as Return On Prevention (ROP).
With this indicator, you can assess your current strategy and adapt it, implementing new measures to limit risk factors within your organization.
How is ROI Calculated?
ROI provides a percentage corresponding to the profitability of your actions. The higher your ROI, the more profitable your prevention program is. At 100%, costs and benefits are balanced. Above 100%, your prevention actions are profitable because the benefits exceed the costs incurred by prevention.
It’s calculated using the following formula:
Benefits refer to the costs that the company has avoided thanks to its prevention policy
How to Calculate the Costs of MSDs for Your Company?
While it’s easy to determine how muchwasspent on a campaign or prevention action, it’s more challenging for a company to calculate the amountit has managed to save.
Knowing how much musculoskeletaldisorders cost each year isn’t straight forward. Indeed, numerou scosts (direct, indirect, and intangible) must be considered to estimate the expenses related to these occupational diseases.
If you want to calculate the ROI or ROP of your prevention actions, here are the costs to add up to determine the benefits.
Direct Costs
Direct costs are those directly caused by MSDs.
Musculoskeletal disorders are accompanied by pain in the lower limbs, upper limbs, muscles, and tendons. The discomfort is such that operators can no longer perform their movements and go on sick leave.
These absences and dysfunctions generate direct costs, related to the disorders and how they are managed by management. Here, we count :
- The cost of contributions to health insurance;
- The indemnities paid to employees absent due to illness;
- The expenses incurred for adapting the workplace;
- And medical care
A high rate of TMS is an exponential factor in the increase in workplace accident and occupational disease contributions
Indirect Costs
Estimating the indirect costs of TMS is more challenging because they relate to the consequences of TMS. According to a study by ISEOR for Anact, hidden costs (strategic and indirect) are 10 to 30 times the direct costs. On average, they range from 6,800 euros to 12,000 euros.
These costs include the absenteeism rate, as well as the replacement and training of absent employees (via temporary staff, for example).
Indirect costs also impact the overall performance of the company. Indeed, TMS lead to a loss of productivity that is difficult to quantify but is certainly detrimental to companies.
Intangible Costs
Intangible costs concern personnel. These costs are caused by a deterioration of the company’s social climate. This has negative effects on working conditions. Productivity decreases… which also results in additional expenses! Examples include:
- Increased internal tensions and risks of conflicts;
- Employee burnout;
- Or management saturation.
You can imagine the associated losses.
Through a policy of TMS prevention, we break the vicious circle of direct, indirect, and intangible costs! Investing in prevention actions means companies are recognizing the true economic importance represented by the magnitude of TMS costs.
The positive social and human consequences of prevention actions in companies are significant.
Investing in prevention also means:
Improving health and safety at work
According to the Civil Code, it’s the employer’s responsibility to ensure the health and safety of employees. More than just an obligation, implementing an organization and adequate work means also addressing the recurrent issue of absenteeism. A job adapted to the workers’ tasks results in fewer workplace accidents for your employees. Occupational health and safety appreciate it.
Increasing productivity
In the long run, TMS prevention becomes a performance factor for your company.
A healthy worker is an efficient worker. If the work organization is favorable, it’s possible to consider increasing production rates within certain limits.
Yields increase while sick leave and turnover decrease.
Concretely valorizing your CSR approach
As companies struggle more and more to recruit talent, CSR initiatives and the concrete commitment of the company highlight its employer brand.
You have actions to communicate to show how you ensure the physical and mental well-being of your employees. You can provide examples of what QWL means to you in the workplace. This enhances your company, its brand image, and contributes to its competitiveness among your competitors!
I’ve calculated my ROI, what next?
After calculating your ROI, you’ll be able to assess your current prevention strategy. You’ll know if it’s financially profitable for the company.
ROI is essential for evolving processes. It also serves to measure the profitability of prevention tools. So, it’s the starting point for any reflection: what tools to use to get results and fight against TMS?
We have the solution.
KIMEA, your partner for measuring the performance and ROI of your prevention actions
Our KIMEA solution is the ally you need to ensure a real return on investment in prevention.
Thanks to artificial intelligence, KIMEA can assess the demanding nature of a posture and measure the risk of TMS occurrence. With its feedback, you can take measures to limit risk factors and reduce TMS in your organization.
As a versatile tool, KIMEA is also ideal for continuous improvement of your health prevention through real-time captures and tracking the results of your prevention actions. KIMEA provides detailed, reliable, and easy-to-use data in the form of dashboards and reports.
Invest wisely in the right prevention actions
Investing in prevention is profitable! But to invest wisely, it’s important to measure the effectiveness of your actions. Your choice of ROI indicators can help you steer your prevention efforts. More than just a convincing argument in terms of investment, it allows you to fully engage in a workplace safety and employee protection initiative against occupational risks.
So, when asked “how much will it cost you,” we can confidently answer, “far less than not preventing at all”!
Article sources:
– Feasibility study for an innovation concerning a tool to aid in the evaluation of MSDs, In Extenso, Innovation Croissance, 17/11/2017.
– ISEOR study for ANACT in 2002.