Facility Safety Management

Our Mission Contact Us Subscribe Media Kit Previous Issues Web Links

How to Develop a Strategy Elements of a Successful Safety Incentive Program

There is still some debate in the safety profession about the effectiveness of safety incentive programs. The argument centers around under reporting of injuries and the thought that incentives should not be required for workers to do their jobs without injury.

Even the providers of incentive programs acknowledge that they are not silver bullets, but need to be part of a comprehensive safety program that motivates and demands that employees recognize their role in maintaining a safe workplace.

When properly implemented, a safety incentive program can reduce injury without compromising the integrity of the company’s safety culture.

A successful safety incentive program, according to the Incentive Marketing Association, which provides performance- measuring tools, tends to have the following important characteristics:

Goal-oriented — Goals are clearly defined and attainable based on past performance and a reasonable projected improvement. Goals are shared upfront with the target audience.

Excitement — High energy is injected into the branding of safety. Banners, posters, buttons, balloons, meetings, etc; use anything and everything, to make participation fun, attractive and rewarding. Bonus point offers, special promotions, success stories, and program results are all used as ongoing tools to maintain a high level of excitement.

Recognition — Employees are honored, recognized, and rewarded publicly for achieving safety goals promoted as rewards for achievement. Timely face to-face recognition is an essential element of every safety incentive program.

Enticing Awards — Nothing has proven more effective at motivating long-term behavior change than brand name merchandise and travel awards. The awards that are chosen are often aspirational items that an employee desires but may not purchase on their own.

Customized — The branding of the program reflects the unique culture and demographic makeup of the workforce so everyone feels invited to participate and eligible for rewards. Frequent updates and adjustments are made to the program on a regular basis and communicated through all available channels.

Sustainability — Consistency, continuity and creativity distinguish well-run and successful programs. Since safety is day-to-day and moment-to-moment, incentive programs need leadership and strong ongoing administration. It is important to implement employee suggestions and address safety concerns as they occur.

Ease of Use — Online components such as an interactive Web site greatly improve access and participation, and make data collection and analysis much easier. Printed materials, Web-enabled kiosks, help desks, toll-free numbers, and online chat are all ways to make a program easier to use and more fulfilling for the participants.

Engagement — The most effective programs are both employee-focused and energized by employee participation. Credibility and value are also greatly enhanced by the full participation and support of management. A true safety rewards program does not stop and start, it is an ongoing process that can be relied on by workers and management alike.

How to Develop an Incentive Program

Establish Objectives — Identify what goal/objective needs to be accomplished, for example: improved attendance, increased sales of a particular product, etc.

The objectives must be simple, specific, and obtainable. Begin with a clear, briefly stated objective and communicate it to all participants.

Outline the Strategy

Build the foundation of the Incentive Program carefully, expanding on the methodology to be used. The structure of the program should detail exactly who is the target audience, and anyone else who will be influenced by the program.

The size of the group is important to the budget of the program, as well as the ability to communicate clearly and measure the results accurately.

Other considerations are geographic boundaries or regions, legal considerations, family issues, the length of the program and timing, individual goals or team goals, and of course, the reward.

Measure Performance — Define both quantifiable and qualitative goals that can be measured, and keep it simple. It might be necessary to look at historical data and come up with an average in order to define a particular goal. The goal needs to be fair to all involved, and obtainable by everyone.

Establish a Budget — In general, the three elements of budgeting include: 1)number of participants, 2) length of program 3) expected results.

There are two types of award budgets:

1) closed-ended, and 2) open-ended. You would need to determine the maximum costs involved with a closed-ended program, and an estimate of costs involved for an open-ended program.

In a sales program, the primary rules are: 1) Anywhere from 5 to 10 percent of additional (incremental) gross sales during the incentive period can be applied to the total cost of the program, and 2) The cost of the incentive awards should equal 5 percent of all compensation for the program period.

In a non-sales program, it is more difficult to put a monetary figure on the value of “improvement,” but some measures are possible that involve increased productivity, improved attendance, and improved safety. The budget is then determined by the “value” the company will realize from the improvements made by the Incentive Program.

Budget Elements

* For merchandise awards, this includes shipping (about 10 percent of the cost of the items) and taxes (about 6 percent of cost).

**The last 3 categories are fixed costs comprising 10-20 percent of incentive program costs.

Select the Perfect Award — It is important to select the correct award because if the individual is not emotionally vested in obtaining the incentive award, he or she will not pursue the goal. Spend some time speaking with the target group and select an award within the framework of the budget that will be important to the group.

Administer the Program — Administration is approximately 20 percent of the program budget, and a good 50 percent of the planner’s time. The target group needs clear, consistent communication and timely feedback on measurement of their performance.

Celebrate the Success of the Program — The end of the program should be celebrated with the target group and performance measurement by individual or team should be provided at this point. Individuals should then receive their awards.

Analyze the Success of the Program — Did the Incentive Program achieve its objectives? Were the participants motivated to change their behavior? Remember, an Incentive Program provides a short-term gain, and follow-up programs are important. Start planning the next one right away.

desire to do so), (2) inconsistencies between organizational, process and front line priorities continue to set people up to make mistakes, and (3) the results of downsizing combined with competitive pressures have created organizational workloads that afford little time for understanding and tackling issues that will create substantive and sustainable improvements in process and worker safety.

PPI further indicates that while responsible and forward-thinking organizations have a stated desire to take safety performance to the ‘next level’, they tend to balk when it comes to planning, execution and making real progress. This is because most of the arrows are pointing to the “human element” within the organization (at all levels, not just the front line).

“Between 84 and 94 percent of all human errors can be directly attributed to process, programmatic, or organizational issues,” said Tim Autrey, Founder/CEO of PPI. “It is fundamental to understand this, and it is fundamental to understand that people created (and continue to create) this 84 to 94 percent. Mistakes don’t just happen on the frontline.”

So, what’s the answer?

“The answer is to engage the workforce at all levels within the organization,” continued Autrey, “and do so in a manner that actually changes the culture. Apply enough resources, and you can drive performance within any organization in one direction or another for a period of time, but if you want to achieve ‘next level’ performance (and sustain it), you must change the culture.

Culture ultimately determines results.” PPI has worked with many organizations over the past two years, helping them to enhance their cultures to ‘next level’ performance through a process known as Practicing Perfection. “There are hundreds of maps that promise to get you there,” offered Allan Reed, Safety Trainer at the Lower Colorado River Authority (LCRA), “but very few deliver. Practicing Perfection

helped us discover our most powerful weapon against accidents…our employees.”

Until now, the culture enriching process of Practicing Perfection® has only been available to organizations directly through PPI; however, the Institute is announcing a First Wave opportunity for dedicated safety professionals to become certified in the use of these powerful strategies and tools.

“Achieving PPC Certification,” offered Autrey, “will be an amazing career opportunity for individuals fortunate enough to grab a participant slot (especially in this First Wave). Likewise, it will be an incredible tool for any organization wanting to elevate its Safety Culture and jump ahead of its competition. We’re rapidly approaching the ‘knee in the curve’. As the proven effectiveness of Practicing Perfection takes hold, it’s destined to become the next “excellence” in organizational performance.” FSM