Economic incentive schemes pay off

Research by the European Agency for Safety and Health at Work (EU-OSHA) suggests that economic incentive schemes encouraging companies to invest in risk prevention are a cost-effective option for governments looking to cut work-related accidents and illnesses.

The EU-OSHA report on economic incentives was launched at a conference of the International Occupational Hygiene Association (IOHA) Health, Work and Social Responsibility in Rome in September 2010.

Many EU Member States already offer various kinds of financial reward for businesses that invest in keeping their employees safe. These range from lower insurance premiums, state subsidies and grants, through to tax breaks, and preferential terms for bank loans for the best-performing businesses.
Three out of 14 case studies highlighted in the project provided sufficient data to conduct a cost-benefit analysis. All three resulted in a positive payout ratio, ranging from €1.01 - 4.81 return for every €1 invested. Quantitative criteria covered accident rates, sick leave, and general improvement in working conditions.