Improve Safety and Reduce Costs
with
Safety Incentive Programs
Brian Galonek
Agenda
I. Power of Incentives Overview
Facts and Figures
Overview of Psychology II. Planning a Safety Incentive Program
Design Considerations Process & Structure
III. Implementing a Safety Incentive Program 7 Keys to Success
4 Common Mistakes Cash is a Bad Motivator IV. Proven Results
Applications
Considerations & Challenges - Allied Waste The Solution - Allied Waste
V. Return on Incentive Investment (ROI2)™ - Allied Waste
VI. Q&A
Power of Incentives
Overview
• Incentive Industry originated over 50 years ago with green stamp promotions and free toasters from banks (customer loyalty)
• Today… it is a rapidly growing ($50 billion…$77 billion) industry that addresses a wide range of business challenges
- Safety Improvement
- Employee Retention & Wellness - Salesforce Incentives
- Customer Acquisition & Loyalty - Service Awards
Power of Incentives
Facts and Figures
• Incentive programs aimed at individuals increased performance by 27%. • Programs aimed at teams increase performance by 45%.
• Long-term incentive programs are more powerful than short-term (44% vs. 20%). • Tangible incentives increase work performance by an average of 22%.
• 92% of workers surveyed indicated that they achieved their goals because of incentives. • 92% of corporations surveyed reported that objectives were surpassed, met, or at least
partially met through the use of incentive programs.
• According to a survey conducted by SHRM voluntary resignations are rising - 90% of employees cite lack of recognition and feeling underappreciated as reason for leaving.
Power of Incentives
Facts and Figures
• 85% of employees see a link between their level of motivation and the quality and quantity of their work - 2002 survey of American workers titled “2002 Motivation for Excellence”
• 84.7% of surveyed respondents said their companies’ safety
consciousness increased as a result of their safety incentive program -Study by Occupational Hazards targeting health and loss prevention professionals
• Some industry experts report annual safety related spending on things like workers compensation insurance, liability insurance, and claims will increase by 7-10% annually even with no change in frequency – Jim Olson Allied Waste.
The four psychological processes that affect the perceived value of an award and increase the value of earning the award:
1) Evaluability – Perceived value of award vs. cost
2) Separability – Separate the award from employee compensation
3) Justifiability – Redeem for an award that they may not normally purchase 4) Social Reinforcement – Acknowledgement from peers, supervisors, family
and friends
SOURCE: Scott Jeffrey, Ph.D., an assistant professor in the Department of Management Sciences at the University of Waterloo in Ontario
The Power of Incentives
Overview of Psychology
Planning a Safety Incentive Program
Design Considerations
- Goals & Objectives - Audience Identification - Fact-Finding
- Program Structure
- Communication & Training - Rewards & Recognition - Management Support - Budget
- Tracking & Administration - Analysis & Feedback
Planning a Safety Incentive Program
Process & Structure
• The ultimate objective should be to create a superior and
sustainable safety culture throughout the organization
• Brand the safety incentive program
• Choose an award structure that works with your target audience • Ongoing communications and employee engagement to
demonstrate the high value placed on workplace safety
• Deliver a program that is fair and balanced • Measure results and make adjustments
Implementing a Safety Incentive Program
7
Keys to success
1. Get management support 2. Make it an ongoing effort 3. Get employee input
4. Face-to-face recognition 5. Tangible reward vehicles 6. Brand name awards
Implementing a Safety Incentive Program
4 Common Mistakes
1. Using cash instead of tangible awards 2. Using exceedingly high value awards
3. Rewarding entire groups for group behavior 4. Closed ended or tournament formats
Implementing a Safety Incentive Program
Cash is a bad motivator
According to the Incentive Federation…
80% respondents stated that merchandise and travel awards are remembered longer than cash awards
60 % of respondents agree that cash is perceived to be part of an employee’s total compensation package
53% agree that employees tend to look at cash bonuses as something they are due, rather than as an award for meeting or exceeding goals
Proven Results
Applications
• Improve driving safety
• Reinforce safe work practices • Retain safety sensitive employees • Enhance training success
• Improve communications • Increase safety suggestions • Improve attendance at safety
meetings and on calls
• Address ergonomic issues • Enhance employee wellness • Support specific company goals
Proven Results
Considerations & Challenges - Allied Waste
• Waste industry prone to accidents and violations • Diverse audience:
– 20 to 60 years of age – Many Spanish speaking – Predominately male
– Remote workers with no computer access at work
• Organized into more than 600 independently managed divisions • One third of divisions are in Unions
• Excessively high turnover rate in certain areas
• Family engagement vital to safety program success
• Multiple participant groups with unique award level eligibility • Previous cash and gift card programs failed
Proven Results
The Solution
- Allied Waste
• PROPEL for safety – a completely customizable and comprehensive web-based incentive solution – Dedicated to Safety (DTS)
• Safety Vouchers available in two denominations which were distributed to safety sensitive employees during monthly safety meetings
• Award redemption online through a custom award website or offline using a printed award catalog and voucher order form
• Wide range of brand name merchandise and travel awards
• Bi-lingual reward program to promote workplace safety to employees and their families
• Safety launch kits sent to GMs to communicate program details
• Quarterly promotional flyers, thank you fulfillment cards, bi-annual award catalogs, posters, and periodic surveys to keep participants engaged
• Extensions of the program – safety slogan content, kids coloring contest safety, helmet program, jacket program
Proven Results
The Solution - Allied Waste
Proven Results
Return on Incentive Investment
(ROI
2)™- Allied Waste
• A 59.8% reduction of OSHA recordable rate over a 3 year period • A 27% reduction in frequency over a two year period
• Combined reduction of 2,520 claims in the first two years
• Eliminate annual 7-10% cost increase and actually reduce spending • Annual savings in the millions of dollars
• 85% of respondents reported that the DTS program has improved their attention to safety on the job
• 96.5% of employees reported that their managers communicated the key Focus 6 initiatives
• Raised safety awareness in the home – kids coloring contest • More engaged workforce – surveys, safety slogan contest • Over 90% of awards ordered were placed online
