depends on
increasing individual awareness. Increasing safety awareness can
reduce the frequency and costs associated with accidents, lost time,
workers compensation, insurance and claims.
A safety incentive program is a good example of
corporate action that can produce a significant return on investment
and transition a good safety culture into a great safety culture,
one characterized by well-defined safety initiatives, infused with
management support, and employee participation.
According to the Incentive Marketing Association, an
incentive program will produce the greatest return on investment in
an environment with established
safety programs and policies, such as employee screening, drug
testing, ongoing training, frequent safety meetings, regular
communications, etc.
In this environment a well-designed program will
help foster measurable productivity gains and substantially reduce
costs.
When a safety incentive program is structured to
promote “top-of-mind” safety awareness, people respond with a
measurable effort to change their behavior.
The IMA says, successful safety incentive programs
tend 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 and
performance updates are shared on a regular basis.
• 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.
The IMA says, safety-sensitive companies
are increasingly using incentive and recognition programs as a key
element of their overall safety strategy. They use these programs to
promote group achievements by motivating individual accomplishments
that lead to a safer workplace.
Viewed properly, these programs are not an expense
but rather an investment for which a substantial positive return can
be expected. In a 2005 study, Liberty Mutual found that CFO’s
identified productivity gains and reduced costs as the two biggest
benefits of workplace safety. Greater productivity and reduced
costs? It is easy to see how incentive programs built to address
safety concerns can produce a positive impact on the bottom line.
In many cases companies with a good safety culture
that have yet to try a safety incentive program can expect a claims
and cost reduction of 10 to 30 percent.
In other situations where companies are enduring
double-digit annual expenditure increases that are spiraling
out of
control on workers compensation, liability insurance, compliance,
and claims, an incentive program can be deemed successful by at
least initially staving off future increases.
An incentive specialist can provide a reasonably
accurate estimate of the anticipated return on investment for a
safety incentive program. This type of pre-program cost-benefit
analysis is a great way to set expectations with managers and
employees alike. It is a key factor in justifying the budget for any
safety incentive program.
While projecting the financial impact of expected
tangible benefits–like increased productivity and fewer accidents,
and intangible benefits like a happier and more informed workforce–
is necessary in the planning stage, measuring actual results is
essential throughout the life of the program.
Armed with this data managers will be well
positioned to make important adjustments to their programs and to
justify the ongoing investment necessary to continue operating them.
