Calculating Return on Investment Ergonomic Interventions


Calculating Return On Investment on Ergonomics

By Johnathan Puleio, CPE & Jenny Zhao, AEP


  • Despite overwhelming evidence that ergonomics interventions result in a return on investment ranging from 3:1 to 15:1, organisations continue to struggle to obtain appropriate funding for  their programmes

  • To many managers, Ergonomics is not part of their business strategy.

  • There traditionally has been a lack of clearly defined performance metrics in ergonomics

  • There are two types of costs considered when calculating the ROI

    • Direct Costs: Incurred in response to an injury or discomfort, most notably worker's compensation and additional medical care costs

    • Indirect Costs: Include increased insurance premiums, lost productivity and decreased work output, administrative time, Turnover, new personnel, replacement costs of materials, tools and property.

  • Indirect costs can outweigh Direct Costs by  more than 3:1

  • When calculating ROI costs can be categorised into three areas:

    • Costs Saved

    • Costs avoided

    • New opportunities.

  • In 2009 in the USA, there were over 3.2 million over extension injuries (1:100 people) - eliminating or controlling repetitive motion injuries is estimated to save a company US$ 27,700 per case


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