The Link Between Employee Safety and Retention: A Closer Look at the Data

Employee turnover is a significant concern for many organizations. It results in substantial direct costs, such as recruitment and training of new employees, and indirect costs, such as decreased productivity and morale. One factor that profoundly impacts turnover rates is employee safety - both physical and psychological. This blog post explores the correlation between employees feeling safe and their longevity with a company, supported by data and relevant studies.

The Impact of Employee Safety on Retention

A safe workplace is not only about preventing physical accidents and injuries; it also includes creating an environment where employees feel psychologically safe and respected. Feeling safe at work has been linked to increased job satisfaction, higher engagement, and, consequently, reduced turnover rates.

According to a study by the Society for Human Resource Management (SHRM), employees who rate their organization highly for "taking steps to ensure the health and safety of employees in the workplace" were nearly four times as likely to report job satisfaction (1). And, as established by numerous studies, job satisfaction is directly linked to employee retention (2).

Another research by Gallup found that psychological safety has a significant impact on employee engagement, a crucial factor in employee retention. The study found that organizations with higher employee engagement scores had 24% to 59% lower turnover (3).

Companies that prioritize workplace safety experience lower turnover rates. For instance, Alcoa, a manufacturing company, prioritized workplace safety and saw a 5% decrease in employee turnover over five years (4). Similarly, Google's Project Aristotle, a research initiative to understand the dynamics of effective teams, identified psychological safety as a key factor contributing to team success and employee retention (5).

The Bottom Line

Ensuring a safe workplace goes beyond compliance with regulations; it directly impacts your organization's ability to retain talent. By making safety a priority, companies can increase job satisfaction, improve engagement, and, in turn, reduce turnover, leading to considerable cost savings and improved organizational performance.

Investing in employee safety, therefore, is not just about fulfilling a duty of care—it is also a strategic decision that can positively impact a company’s bottom line. Are you ready to take the next step in ensuring employee safety? Contact WorldSafe for a free threat assessment. 

Sources:

1. SHRM. (2019). Job Satisfaction and Engagement Report.
2. Maertz, C. P., & Griffeth, R. W. (2004). Eight motivational forces and voluntary turnover. Journal of Applied Psychology, 89(5), 883.
3. Gallup. (2013). The relationship between engagement at work and organizational outcomes.
4. Keenan, C. (2010). Safety Pays: How Alcoa transformed itself by making employee safety a priority. FleetOwner.
5. Google. (2015). re:Work - Guide: Understand team effectiveness.