The ROI of Safety: Why Electrical Safety Programs Are Smart Business
- Jeff Kershner
- Sep 15
- 4 min read
When budgets get tight, safety programs often get pushed to the back burner.
Arc flash analysis? Training? “We’ve never had an incident here — why spend the money?”
But here’s the truth: the absence of accidents doesn’t mean the presence of safety. It often means your facility has been running on luck — and luck always runs out.
The smart choice isn’t to wait for a tragedy. It’s to invest now in electrical safety programs that protect people, preserve productivity, and future-proof your business.
--> If you're a safety or facility professional, you may find the section below useful: "Making the Case to Leadership".
Why Safety Is a Strategic Investment
Electrical incidents are rare, but when they happen, the consequences are severe: fatalities, catastrophic injuries, destroyed equipment, and weeks of downtime. According to the Electrical Safety Foundation International (ESFI), an average of 150 workers die each year from electrical incidents, and thousands more suffer life-altering burns and injuries.
And the financial impact?
The average cost of a workplace fatality is estimated at $1–3 million when medical expenses, litigation, and lost productivity are factored in.
OSHA fines for electrical safety violations can exceed $150,000 per incident.
Unplanned downtime costs can climb into the millions per week, depending on your operation.
Compare those numbers to the cost of an arc flash analysis — often under $25,000 — and the ROI is clear.
OSHA’s own Office of Regulatory Analysis estimates a $4–$6 return for every $1 invested in safety programs, while one environmental services company put the savings at $8 for every $1 invested. No matter which figure you go with, the math is clear.
The Hidden Risks of “We’ve Never Had One”
One of the biggest hurdles safety managers face is executive skepticism:
“We’ve never had an arc flash in ten years.”
“Our electricians know what they’re doing.”
“We can’t afford this right now.”
But these objections miss the point. As one safety manager put it:
“At my last job we had a worker suffer severe burns from an arc flash. Had the company invested in an arc flash analysis, the accident could have been prevented. My current company hasn’t had one either — and I know we’re at risk.”
Accidents may be infrequent, but the risk is always present. Relying on luck is not a strategy — it’s a liability.
Safety That Pays Off — Beyond Compliance
Yes, compliance matters. OSHA requires employers to provide a workplace free from recognized hazards, and NFPA 70E® requires arc flash risk assessments. But the benefits of electrical safety go far beyond “checking the box”:
Protects People: Every worker deserves to go home safe.
Boosts Productivity: Fewer incidents mean less downtime and disruption.
Saves Money: Reduces insurance claims, liability, and costly unplanned outages.
Strengthens Culture: Workers trust leadership when safety is prioritized.
Attracts Talent: Today’s workforce wants to work where safety and values matter.
Simply said, safe companies don’t just avoid losses — they perform better.
How Guidant Power Helps You Stay Ahead of Risk
Arc Flash Analyses
An arc flash analysis gives you a clear picture of the risks hidden inside your electrical system. Our engineers calculate incident energy, establish arc flash boundaries, and provide detailed PPE requirements. The result: accurate arc flash labels and a roadmap for safer work practices. Investing in this study prevents costly surprises and keeps your team compliant with NFPA 70E® and OSHA expectations.
Infrared Thermography Inspections
Electrical problems almost always give off heat before they fail. With over 25,000 IR inspections completed, we know how to spot trouble long before it leads to an outage or fire. Our thermal imaging services provide a visual “heat map” of your system, helping you fix small issues before they turn into multimillion-dollar failures.
Electrical Safety Training
Even the best labels and inspections don’t work unless your people know what to do with them. Guidant Power provides training that brings OSHA and NFPA 70E® to life — empowering workers to recognize hazards, use PPE correctly, and follow safe work practices with confidence. Training is also one of the fastest ways to build a strong safety culture that your employees will trust.
Making the Case to Leadership
If you’re a safety or facility manager, here are three points you can use to persuade decision-makers:
It’s not if, it’s when. Electrical hazards don’t disappear just because you’ve been lucky so far.
Safety is ROI-positive. Industry data proves the savings outweigh the costs many times over.
Culture is a competitive advantage. Strong safety programs build morale, attract talent, and protect your brand.
The Guidant Power Difference
With thousands of arc flash evaluations completed and decades of field experience, Guidant Power knows how to separate myth from reality. We guide facilities in balancing compliance, practicality, and worker protection so safety becomes part of your business strategy — not just a line item.
Whether you’re a safety manager making the case to leadership, or an executive weighing costs against risks, we’re here to help you prioritize what matters most: your people, your productivity, and your future.
Contact us today to discuss your electrical safety program or schedule an arc flash analysis.
Further reading:
70E®, Standard for Electrical Safety in the Workplace®, NFPA 70®, NEC®, and National Electrical Code® are registered trademarks of the National Fire Protection Association, Quincy, MA. All rights reserved. This informational material is not affiliated with nor has it been reviewed or approved by the NFPA.
