Efficiency and effectiveness of occupational safety and health Dietmar Bräunig Thomas Kohstall

1. Efficiency and effectiveness ofoccupational safety and healthDietmar BräunigThomas Kohstall

2. Research interest • Occupational safety and health • Efficiency and effectiveness • Costs and benefits • Paying off for a company?

3. Research approach (1) Meta-analysis of publications in the years 2006 to 2012 Limited to three exemplary studies which comprehensively look for efficiency and effectiveness of occupational safety and health In addition, involving the expertise of 16 further publications which deal with microeconomic issues of occupational safety and health Studies analyzed in detail and processed synoptically

4. Research approach (2) • Example studies • Finnish Institute of Occupational Health(“FIOH-study”): Verbeek/Pulliainen/Kankaanpää 2009 • Prevent and the Kooperationsstelle Hamburg IFE (“benOSH-study”): De Greef/Van den Broek/Van Der Heyden/Kuhl/ Schmitz-Felten 2011 • International Social Security Association, German Social Accident Insurance, German Social Accident Insurance Institution for the Energy, Textile, Electrical and Media Products Sectors (“ROP-study”): Bräunig/Kohstall 2011

5. FIOH-Study (1) • Concept • Evaluation of costs and benefits of occupational safety and health measures as well as their effects on health of employees and productivity of company • Success of occupational safety and health measures defined financially • Occupational safety and health measures to be classified as good business cases?

6. FIOH-Study (2) • Methodology • Meta-analysis of published case studies • Detailed analysis of contents • Recalculation of values for securing comparability • Listing of effects on health and productivity as well as financial success and pay off periods • Analysis of 19 case studies with 26 single cases of 7 countries

7. FIOH-Study (3) • Results • Mainly ex-post cases • Predominantly, analysis of effects on health • Effects on productivity not in focus • Financial success: in first year for nearly half of cases between 0 and 1.000 EUR per employee, positive net value for nearly three-fourths of cases • Pay-off period: less than one year for nearly three-fourths of cases

8. benOSH-study (1) • Concept • Evaluation of costs of occupational accidents and diseases as well as of benefits of occupational safety and health measures for companies • Benefits based on cost savings, success of occupational safety and health measures defined financially • Occupational safety and health measures pay for companies?

9. benOSH-study (2) • Methodology • Analysis of cases on the basis of a field study • Cost-benefit analysis • Estimations of avoidable costs by experts of suitable companies • Calculation of net present value, profitability index and benefit-cost ratio for occupational safety and health measures • Analysis of 56 cases

10. benOSH-study (3) • Results • Net present (median) value1.435 € (conservative)9.218 € (optimistic) • profitability index (median value)1,29 (conservative)2,89 (optimistic) • benefit-cost ratio (median value)1,21 (conservative)2,18 (optimistic)

11. ROP-study (1) • Concept • Evaluation of the direction and strength of the efficiency and effectiveness of occupational safety and health • Qualitative and economic success of occupational safety and health • Return on Prevention (ROP)?

12. ROP-study (2) • Methodology • Cost-benefit analysis • Group interviews • Positive selection of companies experienced with occupational safety and health • Estimations of the effects of occupational safety and health and especially of the benefit-cost ratio • Interviews with 337 companies in19 countries

13. ROP-study (3) • Results • Identification of impact of occupational safety and health in different company areas • Identification of effects of occupational safety and health within the company • Spending for occupational safety and health effecting positive Return on Prevention (ROP = 2,2, median)

14. Conclusion Despite different methods and approaches, similar results for the three meta-analyzed studies Result: occupational safety and health carried out by a company paying for itself Additional 16 publications not contradicting this result (Financial) benefits of occupational safety and health not competing with ethical, social and legal aspects Microeconomic effects of occupational safety and health as a supplementary “pillar” of prevention

15. References Bräunig D, Kohstall T: Calculating the International Return on Prevention for Companies: Costs and Benefits of Investments in Occupational Safety and Health. Project of the International Social Security Association, German Social Accident Insurance and German Social Accident Insurance Institution for the Energy, Textile, Electrical and Media Products Sector, Final Report (Version 2). German Social Accident Insurance (Editor). Berlin. 2013 De Greef M et al.: Socio-economic costs of accidents at work and work-related ill health, Full study report. European Commission, Directorate-General for Employment, Social Affairs and Inclusion (Editor). Luxembourg. 2011 Verbeek J, Pulliainen M, Kankaanpää E: A systematic review of occupational safety and health business cases. Scandinavian Journal of Work, Environment & Health. 35(6):403-412. 2009