3-15. Talent Strategy and EHS: Why Fostering a Safety Culture Leads to Employee Retention

The human resources strategy and EHS (Environment, Health and Safety) initiatives of a company should not be considered separately. Fostering a safety culture not only prevents occupational accidents, but is also directly linked to employee engagement and retention. A decrease in employee turnover leads to a reduction in recruitment costs and an increase in productivity, which also has significant implications from a management strategy perspective.

The Relationship Between a Safety Culture and HR Strategy

A safety culture is one where the entire organization shares the value of "safety first" and reflects that value in its daily actions and decision-making. In HR strategy, creating an environment where employees can work with peace of mind leads to the acquisition, development, and retention of talented people. A workplace with a deep-rooted safety culture enhances the psychological safety of employees and reduces their desire to leave.

Specific Reasons Why It Leads to Employee Retention

First, a workplace with frequent occupational accidents and near-misses increases employee anxiety and undermines long-term motivation to work. Second, a company that disregards safety is perceived as one that "doesn't value its employees," which can lead to a decline in motivation and an increase in people wanting to change jobs. Conversely, a company that prioritizes the health and safety of its employees is seen as a "safe place to work," which directly reduces employee turnover.

Measures to Foster a Safety Culture

• Enhance education and training: Raise employee awareness through regular safety education and risk assessment training.

• Involve top management: When management clearly states that safety is a priority and visits the workplace themselves, the culture permeates the organization.

• Encourage participatory safety activities: When employees participate in safety improvement suggestions and patrols, it fosters a sense of ownership and responsibility.

• Utilize data: Visualizing the number of occupational accidents and near-miss reports and sharing the results of improvements strengthens trust.

The Effect on Employee Retention and Corporate Value

A workplace with a strong safety culture has a high employee retention rate, which reduces the costs of recruitment and training. It also improves the company's image by reducing accidents and misconduct, which leads to increased trust from external parties. Furthermore, occupational health and safety data are directly linked to ESG evaluations and human capital disclosures, which also enhances a company's reputation among investors.

Conclusion

HR strategy and EHS are two sides of the same coin, and fostering a safety culture is directly linked to employee retention. Creating a safe working environment is the foundation for securing talent and improving corporate value, making it an essential part of a sustainable management strategy.