The Role of Safety Management Systems in Improving Workplace Health and Organizational Success

Background: Organizational initiatives aimed at improving workplace performance and safety currently includes the deployment of Safety Management Systems (SMS). SMS includes structured policies, procedures, and tools aimed at improving safety outcomes and reducing risks. Aim: To investigate the effects of SMS on key workplace outcomes is the main aim of this research, including workplace health, safety culture, employee productivity, organizational financial performance, employee retention and satisfaction. The research also seeks to identify how safety culture mediates the relationship between SMS and these outcomes. Method: Data from 1,028 participants were analyzed using various statistical techniques in AMOS software. The methods included correlation analysis to assess relationships between variables, chi-square test for categorical comparisons, multiple linear regressions to model the direct effects of SMS on dependent variables, and ANOVA for group comparisons based on SMS implementation levels. Structural Equation Modeling (SEM) was used to test complex relationships, including indirect effects mediated by safety culture. Results: Findings indicate that SMS implementation significantly improves workplace health, employee productivity, and organizational financial performance. Organizations with higher SMS maturity report better safety records, increased employee satisfaction, and improved financial performance. Conclusion: The results underscore the importance of SMS in fostering a safer, more productive workplace. A strong SMS not only enhances workplace safety but also contributes to overall organizational success by improving employee well-being, retention, productivity and financial outcomes.