Safety benchmarking is the process of comparing your company’s health and safety performance against industry standards or peers.
It gives organizations a clear picture of how well they are protecting employees and managing risks, rather than relying solely on internal impressions.
By identifying gaps, businesses can reduce workplace incidents, improve compliance, and make data-driven improvements.
In Canadian workplaces, safety benchmarking is increasingly important. Stricter provincial and federal regulations, combined with rising costs of workplace accidents, make safety management essential.
According to the Canadian Centre for Occupational Health and Safety (CCOHS), workplace injuries cost Canada over $16 billion annually in direct and indirect expenses, including medical treatment, lost productivity, and legal claims.
Employees are also more aware of safety standards, increasing the need for organizations to maintain measurable, effective safety programs.
This blog will explore the benefits of benchmarking safety performance, including identifying weaknesses in safety programs, reducing violations, enhancing workplace culture, and lowering costs.
We’ll also cover key safety KPIs to track, how to compare your data against industry benchmarks, regulatory considerations, and practical strategies for continuous improvement.
By the end, you’ll understand why benchmarking is essential for creating safer and more efficient Canadian workplaces.
What is Safety Benchmarking?
Safety benchmarking is the process of measuring and comparing a company’s health and safety performance against established standards or peer organizations.
It provides an objective view of how effectively an organization manages workplace risks, prevents accidents, and ensures regulatory compliance.
There are two main types of safety benchmarking:
- Internal Benchmarking: This involves comparing your organization’s current safety performance with past results. For example, tracking year-over-year trends in lost-time injury rates or near-miss reports helps identify whether safety initiatives are improving outcomes over time.
- External Benchmarking: This type compares your company’s safety metrics with industry peers, national averages, or recognized standards such as OSHA, ISO 45001, or CSA guidelines. External benchmarking highlights areas where your organization may lag behind competitors or regulatory expectations and identifies best practices used by high-performing organizations.
Safety benchmarking serves as a continuous improvement tool. By regularly measuring, comparing, and analyzing safety performance, organizations can pinpoint weaknesses, prioritize interventions, and promote a proactive safety culture.
It also supports data-driven decision-making, allowing businesses to allocate resources efficiently, reduce workplace incidents, and enhance overall employee confidence and trust in safety programs.
Why Benchmarking Safety Performance Matters
Benchmarking safety performance plays a major role in creating safer, more efficient workplaces.
It helps organizations stay aligned with federal and provincial safety laws, including requirements set by bodies like WorkSafeBC, Alberta OHS, and the Canadian Centre for Occupational Health and Safety (CCOHS).
By comparing your current performance with recognized standards, you can spot compliance gaps early and take action before they become costly violations.
Another key benefit is early risk or hazard identification. Benchmarking highlights patterns (such as rising near-miss reports or equipment-related injuries) so you can correct issues before they turn into serious incidents.
This proactive approach not only protects workers but also reduces accident-related downtime and financial losses.It also strengthens trust.
When employees see their employer actively tracking and improving safety performance, they feel more confident speaking up, reporting hazards, and following safe work practices.
Stakeholders (like clients and insurers) also view benchmarking as proof of a company’s commitment to responsible operations.
Key KPIs for Benchmarking Safety Performance
When evaluating safety performance in the workplace, certain Key Performance Indicators (KPIs) offer crucial insights into how effectively safety protocols are being followed.
Here are some of the most important global metrics for benchmarking safety performance:
LTIR measures the number of injuries resulting in lost work time per 1 million hours worked.
- Why It Matters: It highlights the severity of injuries, showing how often incidents occur that result in employees missing work.
- How Benchmarking Helps: By comparing LTIR with industry standards, organizations can pinpoint areas requiring safety improvements and reduce downtime.
TRIR (Total Recordable Incident Rate)
TRIR is the total number of recorded incidents (including fatalities, injuries, and illnesses) per 100 full-time employees working 40 hours per week.
- Why It Matters: It provides a comprehensive view of workplace safety, factoring in both minor and serious incidents.
- How Benchmarking Helps: Benchmarking TRIR against similar industries enables companies to evaluate their overall safety performance and identify trends or patterns that need addressing.
This metric tracks how often employees report near-miss incidents (potential hazards that didn’t lead to actual accidents).
- Why It Matters: High reporting rates show a proactive safety culture and can prevent future accidents by addressing potential risks early.
- How Benchmarking Helps: Benchmarking near-miss rates encourages greater reporting and allows organizations to measure the effectiveness of their safety training and awareness programs.
Severity Rate
The severity rate indicates how severe the injuries are based on the amount of lost workdays due to incidents.
- Why It Matters: It provides insight into not just the frequency of injuries, but also the seriousness of these injuries.
- How Benchmarking Helps: By comparing severity rates, organizations can assess whether safety measures are sufficient to reduce the severity of incidents and improve recovery times.
This KPI tracks the percentage of employees who have completed required safety training programs.
- Why It Matters: Proper training is essential to preventing accidents and ensuring all employees understand safety protocols.
- How Benchmarking Helps: Benchmarking completion rates helps organizations gauge the effectiveness of their training programs and ensure that safety knowledge is consistently applied across the workforce.
This metric evaluates the results of safety audits and inspections, assessing how well safety protocols are being followed.
- Why It Matters: High audit scores show compliance with safety standards and regulations, while low scores highlight areas that need improvement.
- How Benchmarking Helps: Benchmarking audit results allows organizations to measure their safety performance against industry standards and make necessary adjustments to improve compliance and safety practices.
Benefits of Benchmarking Against Industry Standards
Benchmarking safety performance against industry standards brings several advantages that can help organizations improve their safety programs and performance. Here are the key benefits:
Identify Gaps in Safety Programs
Benchmarking reveals where a company's safety performance falls short compared to industry leaders. This helps identify areas where safety programs need enhancement, whether it's equipment, training, or processes.
- Example: If your near-miss reporting rate is significantly lower than the industry average, it suggests that employees may not be reporting potential hazards, which can be addressed with better awareness programs.
Improve Compliance & Reduce Violations
Comparing safety metrics against industry benchmarks ensures your company aligns with key safety regulations, such as OSHA and ISO 45001.
- Example: By identifying compliance gaps, you can take corrective actions to align with legal standards, avoiding costly violations and potential fines.
Drive Continuous Improvement
With regular benchmarking, companies can use data to track improvements and areas requiring attention over time.
- Example: If you see a consistent decline in your TRIR over several years, it shows that the safety programs you’ve put in place are having a positive effect.
Enhance Safety Culture
Sharing benchmarking results with employees demonstrates leadership's commitment to measurable progress in safety, building a positive safety culture.
- Example: Employees may feel more valued when they see that leadership is committed to improving their working environment based on actual performance data.
Strengthen Reputation & Trust
Publicly demonstrating a commitment to high safety standards enhances your company’s reputation with regulators, clients, and employees.
- Example: If your TRIR is consistently below the industry average, it positions your company as a leader in safety, boosting trust with clients and employees alike.
Support Investment Decisions
Benchmarking provides hard data to justify investments in safety measures, such as new equipment or employee training.
- Example: If your safety performance is lagging, you can present benchmarking data to justify the need for an increased safety budget to improve outcomes.
Reduce Costs
Lower injury rates and fewer accidents mean reduced insurance premiums, fewer compensation claims, and less downtime.
- Example: By reducing the frequency and severity of accidents through targeted safety programs, companies can significantly lower overall operational costs.
Improve Employee Engagement & Retention
A safe workplace is a key factor in employee satisfaction. Benchmarking results can demonstrate that safety is a top priority, improving engagement and retention.
- Example: When employees see that their safety is being actively measured and improved, they are more likely to stay with a company that values their well-being.
By benchmarking against industry standards, companies in Canada can not only ensure safety but also improve their overall business performance, compliance, and employee satisfaction.
Challenges in Benchmarking Safety Performance
Benchmarking safety performance is critical for improving workplace safety, but organizations often encounter several challenges. Here are some common obstacles and how to overcome them:
Limited or Inconsistent Data Collection
Without standardized and consistent data collection practices, safety benchmarks may lack accuracy, leading to misleading comparisons.
- How to Overcome: Standardize data collection methods across all departments. Implement consistent reporting processes and use automated tools to track and record incidents. This ensures accurate, comparable data that can be used for effective benchmarking.
Differences in Industry Reporting Standards
Variations in how different industries or companies report safety data can make it difficult to compare performance accurately.
- How to Overcome: Use third-party frameworks like ISO 45001 or OSHA guidelines, which offer standardized metrics for safety reporting. These frameworks help ensure consistency across different organizations and industries, making benchmarking more reliable.
Resistance from Employees or Management
Employees and management may be resistant to safety initiatives or the process of benchmarking due to concerns about accountability or fear of poor performance ratings.
- How to Overcome: Promote a culture of transparency and continuous improvement. Engage employees in the process by explaining how benchmarking helps improve safety and working conditions for everyone. Regularly share positive outcomes and improvements resulting from the process to maintain buy-in.
Risk of Benchmarking Against the Wrong Peer Group
Comparing your organization to a peer group that is too different in size, location, or industry may lead to unrealistic or irrelevant conclusions.
- How to Overcome: Ensure that the peer group used for benchmarking is as similar as possible in terms of industry, size, and operations. Choose benchmarks from reputable sources, such as industry associations or safety-specific reports, that include data from comparable organizations.
How to Benchmark Safety Performance Effectively
Benchmarking safety performance requires a systematic approach to ensure accurate comparisons and continuous improvement. Follow these steps to benchmark safety performance effectively:
Identify Relevant Industry Standards and KPIs
Determine the key safety performance indicators (KPIs) that are most relevant to your industry (e.g., LTIR, TRIR, near-miss reporting rates). Ensure these align with internationally recognized standards like OSHA, ISO 45001, or ANSI for consistency.
Collect Accurate, Consistent Safety Data
Implement standardized methods for collecting data on incidents, near-misses, and safety training. This could include digital incident reporting tools, safety audits, and real-time incident tracking systems to ensure accuracy and consistency across your organization.
Compare with External Benchmarks (Industry Reports, Regulatory Data)
Use industry reports, regulatory data, and third-party safety frameworks to compare your safety performance. Seek out safety benchmarks from organizations or government agencies that align with your business’s size and industry for meaningful comparisons.
Analyze Gaps and Set Measurable Goals
Review the data and identify areas where your performance lags behind industry standards. Set specific, measurable goals to address these gaps, such as reducing LTIR by a certain percentage or improving safety training completion rates.
Implement Targeted Improvements
Based on your gap analysis, implement targeted improvements in processes, safety training, equipment, or reporting. Ensure that changes are data-driven and aim to address the specific areas where improvements are needed most.
Monitor Progress and Repeat Regularly
Benchmarking should be an ongoing process. Continuously monitor safety performance to ensure that improvements are being made and that goals are being met. Repeat the benchmarking process regularly to track progress and identify new areas for improvement.
Stress the Importance of Making Benchmarking an Ongoing Process
Benchmarking isn’t a one-time exercise; it should be an ongoing practice. Regularly revisit your benchmarks, update safety goals, and adapt to new industry standards or regulations. This ensures that safety performance remains aligned with evolving best practices and continues to improve over time.
By following these guidelines, organizations can ensure that their benchmarking efforts are effective, continuous, and lead to measurable improvements in workplace safety.
Tools and Frameworks That Support Safety Benchmarking
Effective safety benchmarking relies on a combination of technology, standards, and frameworks to ensure accurate data collection, reporting, and continuous improvement. Here are some tools and frameworks that play a critical role:
EHS (Environment, Health & Safety) Management Software and Reporting Systems
EHS software helps automate and centralize safety-related data, enabling companies to track safety performance in real time. It streamlines incident reporting, hazard identification, compliance tracking, and safety audits. By automating processes, EHS tools reduce human error and enhance data accuracy.
- Benefits: These systems allow for easy visualization of safety performance, making it simpler to spot trends, areas for improvement, and compliance gaps. They also improve efficiency by automating data collection and reporting, saving time and resources.
Global Frameworks
- ISO 45001: This international standard for Occupational Health and Safety Management Systems (OHSMS) provides a systematic approach to identifying and managing safety risks. Organizations can benchmark against this framework to ensure they are meeting global safety standards and continuously improving their safety systems.
- GHG Protocol for Emissions-Linked Safety: For industries concerned with both safety and environmental impact, the GHG Protocol provides guidelines on measuring and managing emissions. This is particularly useful in sectors where safety risks are linked to environmental impacts, such as the energy and manufacturing industries.
- OSHA Standards: The Occupational Safety and Health Administration (OSHA) in the U.S. sets and enforces safety regulations. Organizations benchmark their safety practices to ensure they comply with OSHA’s requirements, thereby minimizing the risk of penalties and protecting employees.
- ANSI Guidelines: The American National Standards Institute (ANSI) develops safety guidelines for industries like construction, manufacturing, and healthcare. Benchmarking against ANSI standards ensures that safety practices are up-to-date and meet industry-specific needs.
Digital Tools
- Automation of Data Collection and Reporting: Digital tools like EHS software allow for automated collection of safety data through sensors, incident reports, and safety audits, reducing the time spent on manual data entry.
- Visualization and Analysis: These tools also offer advanced reporting capabilities that allow organizations to visualize their safety performance through dashboards and charts. This helps identify trends, monitor key safety KPIs, and track the effectiveness of safety initiatives over time.
Where Benchmarking is Most Impactful
Benchmarking is especially valuable in high-risk industries where safety is a top priority. Here’s how it has made an impact across various sectors:
High Injury Risk, Strong Reporting Needs: The construction industry is prone to high injury rates, including falls, machinery accidents, and exposure to hazardous materials.
- Scenario: A construction company benchmarked its LTIR and identified that its fall incidents were significantly higher than industry standards. By implementing additional fall protection systems and safety training, the company reduced fall-related injuries by 40% within a year, improving overall safety and reducing workers’ compensation costs.
Machinery Safety, Near-Miss Tracking: Manufacturing involves heavy machinery and a high chance of near-miss incidents, which are crucial to track for preventing more serious accidents.
- Scenario: A manufacturing plant compared its near-miss reporting rate against industry standards and found it was lower than average. After launching a near-miss reporting program and incentivizing workers to report hazards, the company increased near-miss reporting by 60%, helping prevent serious accidents and improving its safety record.
Healthcare
Patient & Worker Safety: Healthcare environments face risks to both employees (e.g., needle-stick injuries) and patients (e.g., medication errors).
- Scenario: A hospital benchmarked its safety performance against national standards for infection control. By implementing targeted interventions like regular hand-washing audits and improving the sterilization process, the hospital reduced healthcare-associated infections (HAIs) by 25%, enhancing both worker and patient safety.
Regulatory Heavy, High-Risk Environments: This industry is highly regulated due to the dangers associated with drilling, refining, and energy production. Benchmarking ensures compliance with stringent regulations.
- Scenario: An energy company compared its safety performance against global benchmarks and identified gaps in emergency response times. By adopting new training programs and improving emergency protocols, the company reduced incident response times by 20%, mitigating risks associated with accidents and improving compliance with industry standards.
ROI of Safety Benchmarking
Investing in safety benchmarking not only reduces risk but also delivers measurable return on investment (ROI) for organizations. Here’s how benchmarking can lead to both financial and cultural benefits:
By identifying and addressing safety gaps, companies reduce the frequency and severity of accidents. This leads to lower medical costs, reduced insurance premiums, and fewer workers’ compensation claims.
- Example: A company that benchmarks its safety data and addresses high-risk areas can see a reduction in accidents, leading to savings on healthcare and insurance.
Fewer Compliance Penalties
Benchmarking ensures that safety practices align with local, national, and international regulations. As a result, companies are less likely to face fines or legal action due to non-compliance.
- Example: A company that regularly benchmarks its safety programs against OSHA standards will avoid costly fines and penalties, which can be significant for failing to meet compliance requirements.
Productivity Gains from Safer Environments
A safer workplace leads to fewer disruptions caused by accidents, enabling employees to work more efficiently. Less downtime and fewer absences translate into higher productivity levels.
- Example: After improving safety protocols based on benchmarking, a company in the manufacturing sector saw a 15% increase in productivity due to reduced injuries and fewer work stoppages.
Lower Turnover from Improved Employee Confidence
When employees feel safe at work, their engagement and satisfaction levels rise. A commitment to safety can reduce turnover, which saves on recruitment and training costs.
- Example: A construction company that benchmarks its safety programs and makes improvements based on the data sees reduced turnover as employees feel more secure in their working environment.
Positioning ROI as Both Financial and Cultural
The ROI of safety benchmarking isn’t just financial; it also has cultural benefits. A strong safety culture improves employee morale and loyalty, which contributes to overall organizational success.
- Example: A company that makes safety a core part of its values, backed by data-driven benchmarking, cultivates a culture of care and accountability, which ultimately drives both financial performance and employee satisfaction.
By integrating benchmarking into their safety programs, organizations not only reduce risks and costs but also strengthen their overall culture, enhancing both financial performance and employee engagement.
FAQ’s
What KPIs should be benchmarked in workplace safety?
Key KPIs to benchmark include LTIR, TRIR, near-miss reporting rates, severity rate, safety training completion rates, and audit/inspection scores. These metrics offer insights into injury frequency, training effectiveness, and compliance.
How does benchmarking improve safety culture?
Benchmarking improves safety culture by making safety goals measurable, showing employees that leadership is committed to progress, and encouraging proactive safety behaviors across the organization.
Which industries use safety benchmarking most?
Industries like construction, manufacturing, healthcare, and oil & gas frequently use safety benchmarking due to their high-risk environments, regulatory requirements, and the need to reduce workplace injuries.
What tools track safety benchmarking data?
Tools like EHS management software, digital reporting systems, and industry-specific safety frameworks (ISO 45001, OSHA, ANSI) help track and visualize safety data, making it easier to benchmark performance.
How does safety benchmarking help with compliance?
Safety benchmarking helps ensure that organizations meet regulatory standards like OSHA and ISO 45001, reducing the risk of non-compliance penalties and demonstrating a commitment to workplace safety.
What is the ROI of benchmarking safety performance?
The ROI of safety benchmarking includes reduced incident costs, fewer compliance penalties, improved productivity, lower turnover, and stronger employee engagement, all contributing to both financial and cultural benefits.
Conclusion
Benchmarking Safety Performance against industry standards is essential for organizations striving to create safer, more efficient workplaces.
By regularly comparing safety data to global standards, businesses can identify performance gaps, ensuring compliance with regulations like OSHA and ISO 45001.
Beyond compliance, benchmarking strengthens safety culture by showing employees that leadership is committed to continuous improvement.
The process also helps reduce costs by minimizing incidents, cutting insurance premiums, and boosting productivity. Ultimately, safety benchmarking is a critical tool for driving long-term improvements in workplace safety.
Start benchmarking today to build a safer work environment and ensure that your organization is meeting and exceeding safety expectations. This ongoing commitment to safety will not only protect employees but also enhance business performance and reputation.