I came across this interesting article from an Ergoport newsletter.. It's great to see some actual figures outlined in how ergonomic assessments and devices can actually SAVE money per employee!
We all know the benefits of
suitable ergonomic equipment and furniture although can we actually put a price
on it? Scenarios vary from case-to-case with psycho-social, physiological
and environmental factors. The cost estimation hypothesis below may help
determine a return on investment at a rudimentary level. Human Resource
hourly employment rate savings are the prime source of measurable productivity
gains within an organisation (Time = Money). An example of time/cost
savings is generated by utilising ergonomic devices (keyboard, mouse & laptop stand) where an Ergonomic deficiency
was recognised. An example of a common Ergonomic deficiency would be a
worker performing work on a laptop computer without an external keyboard, mouse
and appropriate stand: (keyboard, mouse & laptop stand cost: $300)
Savings Calculations:
Savings Calculations:
- Average life of
Ergonomic Intervention items (combined) = 5 years
- Value added employee
performance savings per day = 5 minutes (1% of time worked per day)
- Intervention set;
usage per day, per employee = 7.0 hours
- Average hourly rate
per employee = $42 (includes 20% incremental costs)
- Productivity savings
per employee per day = Productivity rate (5 minutes / 7.0 hrs)
= 0.0119 %
0.119 $42 x 7.0 hrs. = $3.50 - Number of days to
recoup cost of interventions = $300 / $3.50 = 85.7 days
- Number of years to
recoup cost of interventions = 85.7 days / 300 = 0.29
- (ROI of 0.29 yrs.
assumes 200 work days per employee year)
- Value added time = 5
years – 0.29 years = 4.71 years
- Cost savings = 4.71
years x 200 work days/ year = 942 days
- 942 work days x
$3.50 = $3297
This ergonomic intervention set
would save $3297 per employee after initial cost
Additional cost savings/ can be attributed to increased employee output, fewer errors due to reduced fatigue/ discomfort, lower costs for medical, workers compensation, lost time, restricted work days, and various other supervisory /indirect costs.
Additional cost savings/ can be attributed to increased employee output, fewer errors due to reduced fatigue/ discomfort, lower costs for medical, workers compensation, lost time, restricted work days, and various other supervisory /indirect costs.
‘Article courtesy of Ergoport Pty Ltd’.
Contact Get Ergonised to find out how we can save you money in your business!
1300 820 877
admin@get-ergonised.com.au
www.get-ergonised.com.au
