Improve Safety and Reduce Costs with Safety Incentive Programs

Transcription

1 Improve Safety and Reduce Costs with Safety Incentive Programs Brian Galonek President, All Star Incentive Marketing January 23, 2008

2 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 VII. Contact Information

3 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

4 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. SOURCE: SITE Foundation study, Frank Katusak, Executive Director

5 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 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.

6 The Power of Incentives Overview of Psychology 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

7 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

8 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

9 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 7. Constant communications

10 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

11 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 SOURCE: The 2005 Incentive Federation Survey of Motivation and Incentive Applications, which queried business owners, senior managers, and sales and marketing executives at manufacturing and service companies

12 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

13 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 Rapidly increasing safety related costs

14 Proven Results The Solution - Allied Waste PROPEL for safety a completely customizable and comprehensive webbased 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

15 Proven Results The Solution - Allied Waste

16 Proven Results Return on Incentive Investment (ROI2) - 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 Equal success among union and nonunion divisions

17 Q&A Please submit your questions

18 Contact Information Brian Galonek President, All Star Incentive Marketing