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  Employee Incentive Awards

Safety Incentive Award Program

Introduction

TAG is pleased to present the following program information relating to Safety Incentive Award Programs. After reviewing this introduction please note that we have also included four different program options for you to review when choosing which approach will be best for your company. The options include:

  Option 1. A monthly incentive program that rewards individual employees for their achievement.
  Option 2. A quarterly incentive program that again, rewards the individual employee.
  Option 3. A monthly team-based approach where in order for anyone on the team to receive an award each employee on the team must meet the criteria for the month.
  Option 4. A quarterly team-based approach that rewards for team accomplishment.

We all know that one of the most difficult challenges faced by operations management is that of motivating employees to perform safely. Some managers have concluded, "accidents are inevitable". They consider such business interruptions, decreased productivity and profit losses just a cost of doing business.

Other managers refuse to accept such thinking and continue to search for ways to raise the level of professional performance. They recognize that every accident dollar saved goes straight to the bottom line.

An average company with earnings of 5% net after taxes needs $ 40,000.00 worth of sales for every $2,000 property damage or worker's compensation claim. Viewed another way, every $2,000 claim prevented equates to $40,000 in additional sales. THIS IS REAL MONEY!

Gordon Bethune, CEO of Continental Airlines (J.D. Powers airline of the year) said "that which is measured and rewarded gets done". That couldn't be truer when trying to reduce employee accidents and injuries through improved safe behaviors.

We all accept the fact that we as people respond to and learn from both negative and positive consequences. For instance, if an employee violates a company safe operating procedure their behavior is most likely to be met with disciplinary action. On the other hand, I don't know of anyone who doesn't enjoy a special "something" for a job done right, especially if that something is valuable as well as desirable.

It has been shown time and again that a reward given soon after behavior is measured will have a tremendous impact on the morale of the employee as well as continued encouragement for the employee to work safely, thus avoiding any violations of company work rules.

Let's assume that the company has created its work rules, trained the employee in the safe operation of their job duties and disciplinary procedures are in place. The next key is to motivate the employee with a positive incentive approach.

OBJECTIVES OF AN INCENTIVE PROGRAM
  CREATE INTEREST
  INSTILL AN INDIVIDUAL "CAN DO " ATTITUDE
  PROMOTE PEER ENCOURAGEMENT
  REPLACE UNSAFE PRACTICES WITH SAFE HABITS
  GAIN COMPLIANCE WITH SAFETY RULES
  REDUCE / ELIMINATE ACCIDENTS
  RECOGNIZE ACCIDENT-FREE, PROFESSIONAL PERFORMANCE
  HAVE A LASTING INFLUENCE ON THE RECIPIENT

It is critical that as a company you obtain optimum results for the money invested. To achieve this, you must offer employees something of lasting value that is both tangible, useful and most important, should serve as a constant reminder of how they achieved it.

Question.
WHY IS IT SO IMPORTANT TO USE TANGIBLE ITEMS INSTEAD OF MONEY AS AN INCENTIVE ITEM?

Answer.
MONEY IS SOON FORGOTTEN.

Although most employees will say they want the money, they usually don't in fact remember receiving it. The reason is that money awards are usually hidden in a paycheck and aren't even recognized by the employee. The money is usually spent immediately with no lasting influence. The company has now gained 0% for this investment and the employee receives nothing of tangible value.

A rapidly growing percentage of companies are turning to "TANGIBLE" awards. Many companies have Incentive Award Programs based on budgets of as little as $50.00 per employee per month or $150 per employee per quarter. Program participants state the following benefits in addition to meeting the objectives of an incentive program mentioned above.