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Cost/Benefit analysis for an ISO45001 certification for an SME?

ISO45001 Certification Benefits

Ultimately, the decision to get ISO45001 certified should be based on a careful assessment of the costs and benefits for each organization, taking into account its specific circumstances and goals. Let’s unpack this.

Cost of implementing a Safety Management System based on ISO45001 is a combination of both internal and external costs. Internally, time allocated to the implementation of these system needs to be considered. Externally, there may be costs associated with external experts to assist in the effective implementation of the programs prior to auditing and certification.   

The cost of getting ISO 45001 certified can vary depending on a number of factors, including the size and complexity of your organization, the scope of certification, and the certification body you choose.

Some of the common expenses that may be involved in the certification process include the cost of a gap analysis, internal audits (internal cost of time), training and development, and any necessary improvements to your occupational health and safety management system.

On average, the cost of getting ISO 45001 certified can range from a 150,000 Baht to several hundred thousand, depending on the circumstances.

  1. Position your business as an industry leader
    By adopting the latest occupational health and safety standard, your organization will be seen as a top-tier business, recognized internationally. This level of excellence is acknowledged globally and sets you apart from your competitors.
  2. Boosting trust.
    By demonstrating your commitment to continuous improvement in the health, morale, safety, and performance of your employees, you build trust with the public, potential employees, and clients. Your efforts to promote corporate social responsibility can positively impact your business’s reputation. If your clients or prospective clients belong to the top tier, they are likely to give higher scores to companies that possess recognized standards when making procurement decisions.
  3. Improved efficiency through consistency.
    ISO 45001 creates an organization based on best practices, which are reflected across the company. Having a strong and consistent standard makes your organization more efficient overall.
  4. Lowering insurance premiums.
    By implementing ISO 45001, you show that your organization is taking strong measures to manage and protect your employees. This can result in lower insurance premiums.
  5. Enhancing individual and organizational safety.
    ISO 45001 addresses both the physical and mental health risks to employees from workplace processes and machinery. Costly incidents, downtime and employee absenteeism and ill health can be reduced.
  6. Improved managerial oversight.
    The ISO requires safety management personnel or top management to be responsible for occupational health and safety. This creates a clear process for identifying hazards, improving employee safety over time.
  7. Risk and hazard prevention.
    ISO 45001 helps your organization prevent risks, instead of only reacting to them once detected. The internal auditing system serves as an early warning system to detect potential health and safety threats.
  8. Increased return on investment.
    ISO 45001 provides multiple benefits that lead to increased ROI. Efficiency of your staff improves, while workplace injuries reduce, resulting in improved productivity and insurance premiums. Lower work-related insurance claims further reduce the cost of insurance for your business.
  9. Employee-focused approach.
    ISO 45001 prioritizes the physical and mental well-being of employees, rather than just the quality management of workplace systems and tools. This focus on employee morale has a significant impact on staff turnover and retention rates.
  10. Managing both risks and opportunities.
    ISO 45001 deals with both risks and opportunities, whereas previous standards like OHSAS 18001 mainly focused on risks. This system reduces health and safety risks in the workplace, putting the protection of employee health at the forefront of all processes and planning.
  11. Legal Compliance
    According to the Thai Occupational Safety and Health Act, companies with a workforce of 50 or more employees across various industries must establish a strong and internationally recognized safety management system.

Summary

Small to medium-sized enterprises (SMEs) may be hesitant to obtain ISO certifications due to various reasons such as cost, lack of understanding of the benefits, or aversion to having external consultants or auditors involved in their business operations.

However, when considering the benefits of standardization compared to the costs of implementation, the advantages far outweigh any drawbacks. Implementing ISO standards can lead to a reduction in insurance costs, absenteeism, turnover, and hiring expenses, as well as loss of production from downtime and incidents by 20% or more.

This results in a direct improvement in the bottom line. Additionally, it can also increase clientele and therefore, revenue and also the reputation of the company. This results in increased revenue and decreased costs, improved employee health and morale, higher productivity, and reduced talent loss.

So in summary, is it worth it to invest in OSH programs? If you value your employees and the long term growth of the business then it’s not a difficult decision.