Risk & Business Magazine JGS Insurance Magazine Fall 2018 | Page 28

SAFETY INCENTIVE PROGRAMS
The Right Way To
Implement Safety
Incentive Programs
S
afety incentive programs can
be an important element in any
workplace health and safety
program. However, if not done
properly, an incentive program may
actually decrease job safety.
A simplistic incentive program based solely
on employees achieving a specified number
of accident-free days or no lost time can
lead to underreporting injuries. In turn,
this can cause your organization to be
unaware of, and consequently, be unable
to fix potentially dangerous situations. In
fact, employees may become “retaliatory”
toward one another, particularly when
group rewards are used. If one person is
responsible for the loss of a group reward,
that individual may become the target of
negative behavior or resentment by other
employees.
OSHA standard 1904.35(b)(1)(i) states the
following: “You must establish a reasonable
procedure for employees to report work-
related injuries and illnesses promptly and
accurately. A procedure is not reasonable if
it would deter or discourage a reasonable
employee from accurately reporting a
workplace injury or illness.”
OSHA has observed that the potential
for unlawful discrimination may increase
when management or supervisory bonuses
are linked to lower reported injury rates.
OSHA cannot condone a program that
encourages discrimination against workers
who report injuries.
So if basing an incentive program solely on
accident-free days does not work, then what
does?
First, a safety incentive program should
never be a substitute for a good workplace
design. After an organization has already
made a concerted effort to eliminate unsafe
conditions, has comprehensive safety
procedures, provides employee training and
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has a written safety program, then it can
consider implementing a safety incentive
program.
A safety incentive program should be
behavior based. Changing employee
behaviors and firmly establishing a safety-
minded culture is the proven approach.
Rather than just focusing a program
on working X days without a lost-time
injury, behavior-based safety incentive
programs provide incentives for employees
to become their own safety managers. By
getting employees involved in the process
of creating a safe work environment, they
will be more likely to focus on the total
outcome rather than just the reward.
For a behavioral-based program to work,
every manager—from supervisors to
the CEO—must be committed to and
participate in the program. Employees
will never buy into a program when
management does not show support.
Involve all employees in the process.
Have them participate in committees,
inspections, investigations and making
suggestions.
Use constant repetition and consistently
promote the program. Advertise safety
throughout your work site with safety
posters and payroll stuffers. Take your cues
from marketing, where the most effective
way to deliver a message is frequency and
consistency.
One of the key components of a safety
program and safety incentives is the
supervisor. Safety should be a part of their
job performance on par with quality and
productivity. Accidents occur from either
unsafe acts or unsafe conditions. Part
of your supervisor’s job function should
include identifying unsafe acts and unsafe
conditions through observations and daily
site inspections.
BY: ERIC P. WOKAS, CSP ARM
RISK CONTROL CONSULTANT
JGS INSURANCE
Don’t just focus on injury reports, which
are lagging indicators. Instead, implement
strong injury reporting policies and
accident investigation procedures alongside
corrective actions. Just reporting the
accident is not enough. Find the reasons
behind the incident. Determine how to
prevent a reoccurrence. In many cases,
retraining is required—not only of the
injured worker but others who are involved
in similar tasks.
Companies that train and encourage staff
to recognize safe behavior and positive
outcomes have excellent safety cultures.
Most experts agree that cash bonuses are
acceptable for truly outstanding safety
performance. But cash, seemingly the most
valuable prize, is often just not special
enough. Rewards should be symbolic,
meaningful and a remembrance of the job
well done. Many companies offer gifts such
as clothing or household items. Others
offer extra vacation days or throw parties.
Above all, remember that safety incentive
programs should not be about paying
people off but about recognition and
motivation for making safety a top priority
every day.
JGS Insurance has a host of tools and
resources to help you take your safety
program to the next level and to support
your safety culture. +
Eric Wokas has over 25 years of experience
as a risk management consultant
working for various major property/
casualty insurance carriers including
Continental, Zurich and Gerling as
well as Aon an international insurance
brokerage firm. At JGS Insurance Mr.
Wokas continues to assist clients in
development and implementation of
practical solutions in reducing risk.