EHS and the profitability

EHS (Environmental, Health and safety) measures are important issues in the production environment, there is probably hardly anyone who would disagree. The extent to which these topics are taken into account when implementing and optimizing processes often depends on their economic efficiency - but that is not the only factor.

There are certain elements in workplace safety, health and environment that cannot be avoided. Industrial health and safety requirements have been in place for decades, and environmental protection requirements have been tightened over the years – and this is absolutely right. Most companies comply with these. But the legislature regulates only a minimum and the responsibility of companies goes far beyond the scope of the legislation. The positive effects of EHS measures are actually obvious, but they only pay off indirectly and that is a problem for some managers.

When does health pay off?

The bad news first: not immediately. The good news: In the medium term and indirectly, such measures pay off on a large scale. If people find a healthy working environment where they can work under acceptable conditions, they stay healthy and sick leave decreases, days and duration can be measured. Even the psyche, which is not burdened, leads to job satisfaction. These are all effects that also have a very large monetary impact, not immediately, but retrospectively after a certain period of time.

Another fact which is often forgotten

If a company is also known as a good employer, it is easier to find qualified staff. A bad reputation, on the other hand, gets around and can no longer be compensated for by better salaries. In addition, satisfied employees are more willing to get involved when it comes to improvement and further development. In view of the shortage of skilled workers, this aspect will become even more important in the future.

Ability to abstract is required

In the current discussion on combating the climate crisis, time periods and monetary interactions are becoming even larger and more abstract. Also regarding environment issues, it is much more than just meeting government requirements. Companies that do not start to transform themselves ecologically today will lose their competitiveness in about ten years. Ecological transformations mean that in the medium term one must not consume more energy and resources than can be regenerated within the same period.

In contrast to the measures for health and safety, the enviromental issus call for very far-reaching changes in the product and service portfolio, as well as the energy, resources and raw materials used. The effects on the well-being of the company are even less obvious, but can still be explained.

Short-term profit versus responsibility

EHS shows how a company is run. While managers look at good key figures and almost only include direct effects in their decisions, entrepreneurs assume responsibility that goes beyond economic success of the company, which in turn also ensures the long-term success of the company.

Mario Buchinger is physicists, musician and author. The specialist for Lean and Kaizen worked for ten years as an employee and manager at Daimler and Bosch before setting up his own business in Austria in 2014. He is no consultant, instead he supports as external colleague the development of changeability. In addition to industrial companies, his customers also include banks and public authorities.