How do you show the ROI of ergonomics and human factors?

1 Benefits of ergonomics and human factors

Ergonomics and human factors offer a range of benefits, both financial and social, environmental, and ethical. These include reducing the risk of musculoskeletal disorders, injuries, and illnesses among workers, which can lower absenteeism, turnover, compensation costs, and legal liabilities. Additionally, ergonomics and human factors can improve the performance, efficiency, and satisfaction of workers, leading to increased productivity, quality, innovation, and morale. Furthermore, these practices can enhance the usability, accessibility, and attractiveness of products and services for customers which can boost satisfaction, loyalty, and retention. Finally, ergonomics and human factors can support the sustainability, resilience, and diversity of work systems to improve the environmental and social impact of organizations.

2 Challenges of showing the ROI of ergonomics and human factors

Despite the advantages of ergonomics and human factors, demonstrating the ROI of these interventions can be difficult for a variety of reasons. Complexity and variability of work systems can make it hard to isolate and measure the effects of ergonomics and human factors on different outcomes and stakeholders. Additionally, costs and benefits may vary depending on the type, scope, duration, and quality of the intervention, as well as the baseline situation, implementation process, and evaluation method. Furthermore, a lack of standardized and validated tools and metrics may impede comparability and credibility of the ROI calculations. Finally, decision-makers may have varying priorities, expectations, and perspectives on the value of ergonomics and human factors which can lead to resistance or skepticism.

3 Methods of showing the ROI of ergonomics and human factors

To effectively show the ROI of ergonomics and human factors, you need to adopt a systematic and rigorous approach. This includes defining objectives, scope, and stakeholders that align with the organization or client's strategic goals. Additionally, you must conduct a baseline assessment to identify problems, needs, and opportunities for improvement related to ergonomics and human factors. You must also design and implement the intervention, following the principles and best practices of ergonomics and human factors. Furthermore, it is important to evaluate the intervention and collect data on costs and benefits from different sources. Finally, you should calculate the ROI of the intervention using a formula that compares net benefits to costs. Additionally, it is essential to communicate the ROI of the intervention in a clear, concise, and compelling manner, highlighting qualitative and quantitative evidence and stories that support your claims.

4 Examples of showing the ROI of ergonomics and human factors

To illustrate how you can show the ROI of ergonomics and human factors, here are some examples of successful interventions and their outcomes. A manufacturing company implemented an ergonomics program that involved training, risk assessment, and workstation redesign, leading to a 76% reduction in injury rates, a 65% reduction in injury costs, and a 270% ROI over three years. Meanwhile, a call center improved the lighting, noise, and temperature conditions of its office, as well as providing adjustable chairs, desks, and monitors to its employees. This resulted in a 56% increase in employee satisfaction, a 12% increase in customer satisfaction, and a 125% ROI over one year. Lastly, a hospital introduced a human factors approach to its medication administration process by using barcode scanning, electronic prescribing, and smart infusion pumps. This significantly reduced the medication error rate by 86%, the adverse drug events by 95%, and the mortality rate by 44%, generating a 635% ROI over five years.

5 Tips for showing the ROI of ergonomics and human factors

To maximize your chances of demonstrating the ROI of ergonomics and human factors, it is essential to involve the decision-makers and stakeholders in the planning, implementation, and evaluation of the intervention. Additionally, a combination of qualitative and quantitative data should be used to select metrics and indicators that are relevant, reliable, and meaningful for your context and audience. It is also important to compare the costs and benefits of the intervention with the costs and benefits of the alternative or status quo. When presenting the ROI of the intervention, it should be as a range or a scenario instead of a single number, taking into account the uncertainty and variability of data and assumptions. Lastly, emphasize both short-term and long-term benefits of the intervention that align with organizational or client values and mission.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?