Five ways your business can benefit from a loss prevention program
Profit, in the broadest sense, is sales minus costs. Typically, loss prevention is seen as a cost to the business, but if it is done effectively and efficiently any loss prevention efforts will add to your bottom line.
Here are five ways implementing a loss prevention program can benefit your business:
- Provide guidance to employees — employees who are properly informed of all hazards and are properly trained on how to deal with them tend to be more efficient workers. They respond quickly to potential hazards to avoid losses and perform their work conscientiously.
These all add up to increased profits by avoiding losses and increasing productivity.
- Provide opportunities to identify hazards through regular inspections, quality control programs and procedures to handle deficiencies, which can then avoid and/or reduce losses, and maximize profits.
- Provide opportunities to learn from near misses, accidents without losses, and accidents involving losses to improve or create new loss prevention programs.
- Share emergency procedures — employees that are properly trained on emergency response are prepared to act quickly and correctly during an emergency and their quick response could avoid or mitigate any losses, again increasing profits.
- Ensure compliance to all safety legislation ensuring that your Worker’s Compensation dues are minimized, thereby avoiding any penalties or punitive damages for accidents.
When all levels of the company are involved in the creation, maintenance and enforcement of a loss prevention program, success will surely follow and profits for the business will be maximized.