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Workplace Safety - The Role of Incentive Programs |
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The good news is that safety programs work, especially those that rely on incentives to encourage employee participation. And initiatives in many states reward companies for effective safety programs by offering a 5% credit on workers compensation premiums. Although complicated, federal tax laws provide incentives for companies to offer qualified safety programs. With a qualified program, employers can deduct the cost of rewards and employees can accept them on a tax-free basis. Like other efforts to promote behavior, safety campaigns are a blend of leadership, employee involvement, communications, and incentives. Here are some critical issues: Be proactive. Identify dangerous behavior and then use education and incentive programs to reduce or eliminate it. Analyze every aspect of the workplace as it relates to safety. Construct a clear set of guidelines for preventing unsafe conditions. Establish these critical components:
The carrot vs. the stick. Programs that punish unsafe practices are clearly less effective than those that reward safe ones. You want full employee participation in the program, so create a clear incentive component with the help of an incentive marketer, if possible. STEPS TO SUCCESS Here are the essential elements of a successful incentive program to promote safety: Assemble your team. Begin your program with employee input, since employees can help you pinpoint critical areas as you examine every process in the workplace to see how safety can be improved. Form a safety committee and designate a safety manager. Solicit outside input from safety consultants, insurance companies, workers compensation representatives at state agencies, and members of the Occupational Safety and Health Administration (OSHA). Assign employees to enforce the safety procedures and analyze the program's results. Schedule regular safety meetings. Determine the return on investment. Consult with your insurance carrier to get information on how your safety program can potentially reduce premiums or qualify you for support services to make your program more successful. Talk with your tax attorney to find out how you can structure the program to take advantage of federal tax incentives, something your employees will especially appreciate. Implement a training program. Safety training is the best way to insure that your procedures are understood and followed. Use this process to promote the incentive component of the program. Training must be ongoing, especially as you adjust procedures based on what you learn. Create an incentive program. Part of your safety policy should be a clear system of rewards based on safety performance. Behavior is the means to safety, and incentives are a reliable means of improving behavior. Since safety is an ongoing concern, the incentive program must be designed to keep employee enthusiasm at a high level over the long term. Cash incentives are a poor choice for safety programs since cash has a limited trophy value and can come to be viewed as expected compensation that is painful to take away. If possible, get the help of an experienced incentive marketing company (go to Suppliers). Provide regular feedback. In prominent locations where employees will see them, post results, tips, and notices about the people who spotted safety problems. TIPS Potential reward levels should total between 3% and 5% of salary. The promotion should have a strong theme, be ongoing, and change periodically as the program matures. Plateau incentive programs work best with safety. Even if you have a 100 percent safe workplace, give employees something to shoot for. In selecting awards, look for high trophy value, reliable vendors, and short turnaround time. Experienced vendors will help you match the award to the recipient. Offer the greatest degree of flexibility possible. Present awards with fanfare, preferably at a public function in front of peers. Remember, marketers have a strong role to play in a successful safety program. Safety campaigns require marketing expertise, because they require good communications and attention-getting devices. Get your marketing department involved, or use an incentive company or promotional products company experienced in pinpointing key benefits and communicating them clearly to everyone. To keep safety in the forefront, develop a safety newsletter or devote a portion of the current employee newsletter to safety. Peer pressure is an effective tool in maintaining safety, so tout the safety achievements of individual employees. A good safety record should also be promoted outside the company to potential customers, the press, and investors.
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Accent On
Performance is a division of Accent Travel American Express. |
Safety is an important bottom-line consideration, since reducing worker injuries saves money. There are over 6 million work-site injuries and illnesses a year in the U.S. That's 7 cases per 100 full-time workers. The result is lost productivity, workers' compensation claims, damaged equipment, and lawsuits.