The trick to creating the most effective safety-incentive program; done right, safety-incentive programs recognize employees for improved performance as well as motivate workers to maintain stellar safety records - The Power of Incentives

HR Magazine, Sept, 2003 by Betty Sosin

Incentives are a way of life. Parents use them to motivate their children. Companies use them to reward CEOs and retailers use them to boost sales. Yet many companies still view safety-incentive programs with a wary eye. [paragraph] This may be, in part, because OSHA issued a draft statement of policy in 1998 disparaging what it calls "traditional" safety-incentive programs, or those that offer rewards for reduced injury rates. The stated reason? Traditional incentive programs could induce workers to under-report injuries. But the document gave a nod to what it called "nontraditional" programs, or those that reward employees for positive behaviors such as attending safety meetings, demonstration safety proficiency or making safety suggestions. OSHA later backed away from the proposed policy and issued an interpretation letter in March 2000 stating that "OSHA neither approves nor dis-approves the design or the effectiveness of safety-incentive programs. However, we do not look favorably on safety-incentive programs which encourage under reporting of workplace injury." [paragraph] "Although there are no legal barriers to traditional safety-incentive plans, OSHA inspectors may ask company employees about the workplace safety plan and its effect on accident reporting if you have a traditional incentive program and go through an inspection," says Edwin G. Foulke, Jr., JD, LLM, PHR, an employment attorney with Jackson, Lewis, Schnitzler and Krupman in Greenville, S.C.

Moreover, some behavior-based safety consultants are not fans of safety-incentive programs. "We view safety as an artifact of leadership and management practices that shape the culture and influence behaviors," says Tom Oyan, director of business development and principal consultant at Behavioral Science Technology, the Ojai, Calif.-based safety-consulting firm that helped pioneer behavior-based safety.

Though safety experts agree that an incentive program alone will not improve safety and health performance, there's proof that a well designed incentive program--with the right mix of program components can be an integral part of a comprehensive safety initiative.

Marc E. Flanders, president of WC Solutions Group in Chesterfield, Mo., a risk-management firm specializing in design and implementation of motivational processes to improve workplace safety, believes that each company should decide for itself the value of incentives as part of its overall safety program.

"Incentive programs are too effective and popular not to be considered part of the menu of safety options," he says. "But the success of these programs lies in the details. You can't just take a cookie-cutter approach."

Michael Topf, president of The Topf Organization, a safety-consulting firm in King of Prussia, Pa., recommends factoring safety into each employee's performance appraisal. "That way safety is managed like attendance, production, training and other aspects of the work culture," he says.

One of Topf's clients, Hercules Research Center in Wilmington, Del., does just that. According to Hercules" safety director Nick Porro, each year the research center more than 400 employees undergo an accountability review. During the review, employees set safety goals for the coming year. At the end of each year, managers and employees analyze the results.

"Putting safety goals in writing and tying them to performance reviews has definitely gotten our employees more involved in the safety process," says Porro.

The company also uses instant rewards. "Safety-incentive programs usually have a long delay between the actions and rewards, so there's a disconnect," Porro says.

To avoid potential disconnects, Hercules gives employees immediate rewards for proactive safety behaviors in the form of "safety bucks," which are $5 gift certificates redeemable at the company's cafeteria. In addition, the company rewards employees for reporting incidents, sponsors "Lunch and Learn" safety sessions and hosts several annual picnics or other family events where safety-related gifts are distributed.

HR manager Jo Ann Benge says these programs have increased employee engagement in the company's comprehensive safety efforts. She also believes it's important to maintain efforts in bad economic times.

"Employees can be distracted and morale can be low during economic downturns, making it easy to lose sight of what's important," she says. "Continuing our program is just one way we keep safety at the forefront."

Tricks of the Trade

So what are the best practices that help create a successful incentive program? Here is the advice the safety experts give:

* Make incentives part of a strong overall safety program supported by management.

* Set two or three simple, realistic goals that can be easily measured and are acceptable to both management and workers.

* Give employees ownership. Employees who oversee the day-to-day operations know the hazards and behaviors that need to be changed.

* Structure incentives with the same diligence as other program components. Decide how long the program will last, whether employees will work as teams or individuals, and how data will be collected and analyzed to track results.