Rewards and IncentivesRewards and Incentives

Do they work?Do they work?

What Is A Reward?What Is A Reward?

Something of value given in return for Something of value given in return for action/behavior/outcomeaction/behavior/outcome

What Is An Incentive?What Is An Incentive?

Something of value given in anticipation Something of value given in anticipation of desired action/behavior/outcomeof desired action/behavior/outcome

Is There a Place for These in Is There a Place for These in Safety?Safety?

They both have a role in a They both have a role in a comprehensive safety program.comprehensive safety program.

If used in the right manner they can If used in the right manner they can encourage participation.encourage participation.

PROSPROS Reward desired Reward desired

outcomesoutcomes Encourage active Encourage active

involvementinvolvement

CONSCONS Can encourage Can encourage

non-reporting of non-reporting of injuriesinjuries

People can People can “game” the “game” the systemsystem

ExampleExample

RewardReward

Go through year without injury and you get Go through year without injury and you get _______________ (gift/money/day off) _______________ (gift/money/day off)

What did you just reward?What did you just reward?

Another ExampleAnother Example

RewardReward The department with the best safety record The department with the best safety record

(incident rate) for the year will get (incident rate) for the year will get _________ (meal, trophy, day off, etc)_________ (meal, trophy, day off, etc)

What did you just rewardWhat did you just reward

QuestionQuestion

Is it better to:Is it better to: Reward people not to do something Reward people not to do something

Or:Or: Reward people to do somethingReward people to do something

ExampleExample

IncentiveIncentive

Complete a safety walk down of each area Complete a safety walk down of each area during the quarter and you’ll get ________during the quarter and you’ll get ________

What did you just reward?What did you just reward?

ExperienceExperience

Avon Lake Power PlantAvon Lake Power Plant

ExperienceExperience

Avon Lake Power PlantAvon Lake Power Plant

First EnergyFirst Energy CEICEI Orion PowerOrion Power Reliant EnergyReliant Energy RRI EnergyRRI Energy

Safety Incentive ProgramSafety Incentive Program

The safety incentive until 2006: The safety incentive until 2006: For each quarter you did not get hurt you For each quarter you did not get hurt you

received $10.00received $10.00 This came as a gift card to one of four This came as a gift card to one of four

chains (Best Buy, Wal Mart, Home Depot, chains (Best Buy, Wal Mart, Home Depot, Giant Eagle)Giant Eagle)

You could roll it from quarter to quarter You could roll it from quarter to quarter and cash in all 4 at the end of the yearand cash in all 4 at the end of the year

Safety Incentive ProgramSafety Incentive Program

In 2007 we started changing the criteriaIn 2007 we started changing the criteria The amount was raised to $100.00The amount was raised to $100.00 Not getting injured was 40%Not getting injured was 40% Wearing all your PPE was 40%Wearing all your PPE was 40% Housekeeping was 10%Housekeeping was 10% Training was 10%Training was 10%

Safety Incentive ProgramSafety Incentive Program

In 2008 we changed the criteria some In 2008 we changed the criteria some moremore The amount stayed at $100.00The amount stayed at $100.00 Not getting injured was 20%Not getting injured was 20% Wearing all your PPE was 30%Wearing all your PPE was 30% Quarterly audits were 50%Quarterly audits were 50%

Safety Incentive ProgramSafety Incentive Program

In 2009 the criteria is:In 2009 the criteria is: The amount stayed at $100.00The amount stayed at $100.00 Completion of safety training is 25%Completion of safety training is 25% Wearing all your PPE is 25%Wearing all your PPE is 25% Quarterly audits are 50%Quarterly audits are 50%

Safety Incentive ProgramSafety Incentive Program

In 2010 the criteria will be:In 2010 the criteria will be: The amount will stay at $100.00The amount will stay at $100.00 Quarterly audits are 50%Quarterly audits are 50% The other 50% - still working on itThe other 50% - still working on it

Additional IncentiveAdditional Incentive

In 2009 the plant implemented a “Pay for In 2009 the plant implemented a “Pay for Performance” programPerformance” program Each hourly employee can receive up to Each hourly employee can receive up to

2% of annual pay. Based on:2% of annual pay. Based on:• Safety/environmental Safety/environmental • Job knowledge Job knowledge • Attendance Attendance • ProductivityProductivity• Teamwork/leadershipTeamwork/leadership

Additional RewardsAdditional Rewards

Movie TicketsMovie Tickets Each month a safety quiz is published that Each month a safety quiz is published that

covers material from the previous month’s covers material from the previous month’s safety training.safety training.

All correct quizzes (100%) are entered in a All correct quizzes (100%) are entered in a drawing – four winners get four movie drawing – four winners get four movie tickets each.tickets each.

Additional RewardsAdditional Rewards

Lake Erie Crusher tickets are given out Lake Erie Crusher tickets are given out from time to timefrom time to time

Additional RewardsAdditional Rewards

TrinketsTrinkets Shirts and/or jackets are given out when Shirts and/or jackets are given out when

we reach safety milestoneswe reach safety milestones Meals are provided for exemplary Meals are provided for exemplary

performanceperformance

Additional RewardsAdditional Rewards

Power Bucks Power Bucks

Employees can nominate other Employees can nominate other employees for Power Bucks. These are employees for Power Bucks. These are for actions that demonstrate company for actions that demonstrate company

values: safety, integrity, values: safety, integrity, communication, etc.communication, etc.

Does It Work?Does It Work?

By itself – who knows?By itself – who knows? As part of an overall safety culture - yesAs part of an overall safety culture - yes

Issues?Issues?

Some of the program parts are Some of the program parts are voluntaryvoluntary

OSHA does not like programs that OSHA does not like programs that would encourage non-reportingwould encourage non-reporting

There is some administrative workloadThere is some administrative workload

Questions/DiscussionQuestions/Discussion