Struggling to get buy-in for your ergonomics and musculoskeletal disorder (MSD) prevention program initiatives? Read this article to learn how to use our free cost-savings calculator to estimate your expected MSD cost-savings. You can use this estimation as part of a return on investment (ROI) analysis which will help you get the buy-in you need to acquire resources for your initiatives.
Table of Contents
Introducing the MSD Cost Savings Estimator
The MSD Cost Savings Estimator is a free tool we’ve added to our website that allows you to enter a few simple inputs to estimate your MSD cost savings.
Go to the MSD Cost-Savings Estimator →
How to Use the MSD Cost Savings Estimator
Using the tool is easy. Simply enter the following inputs:
Average # of annual MSD recordables
How many MSD recordables does your worksite experience in a year? A common approach is to average your last three years of MSD recordables. If recordables are on the rise, you might want to use the past 12 months.
Average treatment cost per MSD
If you know your average direct treatment cost per MSD, enter that here. If you don’t have access to this information, you can stick with the default of $30,487 (source: OSHA).
Prevention strategy
There are three options here. The prevention strategy you choose will impact your “Program Effectiveness” percentage:
- Ergonomics only (59% effective at reducing MSDs)
- Early Intervention only (17% effective at reducing MSDs)
- Ergonomics + Early Intervention (76% effective at reducing MSDs)
Indirect cost multiplier
Indirect costs of MSDs include lost productivity, product defects, absenteeism, legal, administrative paperwork, etc, and can be up to six times the direct costs of an MSD. You have three options to choose from as your indirect cost multiplier; conservative, average, or high.
- Conservative (1x direct costs)
- Average (2x direct costs)
- High (4x direct costs)
After you enter the inputs, the calculator automatically updates and includes the following information:
Annual Direct Cost of MSDs
This is your “Average # of Annual MSD Recordables” times the “Average Treatment Cost per MSD”.
Annual Indirect Cost of MSDs
This is the “Annual Direct Costs of MSDs” times the “Indirect Cost Multiplier”.
Total Annual Cost of MSDs
This is the sum of “Annual Direct Cost of MSDs” and “Annual Indirect Cost of MSDs”.
Program Effectiveness
Program effectiveness is determined by your “Prevention Strategy”.
- Ergonomics only (59% effective at reducing MSDs)
- Early Intervention only (17% effective at reducing MSDs)
- Ergonomics + Early Intervention (76% effective at reducing MSDs)
Annual MSD Prevention Cost Savings
This is the “Total Annual Cost of MSDs” times “Program Effectiveness”.
3-Year Potential Cost Savings
This is the “Annual MSD Prevention Cost-Savings” times 3.
5-Year Potential Cost Savings
This is the “Annual MSD Prevention Cost-Savings” times 5.
10-Year Potential Cost Savings
This is the “Annual MSD Prevention Cost-Savings” times 10.
Long-range cost-savings estimations are provided to illustrate the value of long-term thinking and to highlight the cost of short-term inaction. The longer you wait to implement your MSD solution, the more your inaction will cost you. The earlier you get started with your MSD solution, the more value you’ll get out of it.
Conclusion
Done well, ergonomics and MSD prevention programs provide a tremendous return on investment. The MSD Cost-Savings Estimator is an easy-to-use tool to help you estimate your potential ROI and garner the resources you need to get started.
Need Help?
If you need help using the MSD Cost-Savings Estimator or getting buy-in for your MSD solutions, our team is here to help.
Get in touch to talk to one of our experts →
