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John Harvey  
#1 Posted : 07 September 2011 08:29:15(UTC)
Rank: New forum user
John Harvey

Manufacturing environment.

Our current employee bonus scheme is centered around both inventory and on time delivery metrics. Both of which many functions feel they cannot directly influence or contribute towards achieving our monthly goal and get a bonus (small monetary payment for each metric - Max achievable is £60 per month)

We are thinking of a change, using new metrics, ones that the business feels are the most significant and important to us, at the heart of the bonus scheme, things like Quality & H&S. The feedback from employees is that they will have a more sense of contributing to these metrics and therefore giving them more control over whether they achieve a monthly bonus.

I know that we will need to tread carefully about incentivising H&S performance. I am not considering incentivising departments that do not sustain any lost time accidents etc as I believe this could increase under reporting and such like.....Also with things like near miss reporting, we may find that extremely trivial items will be reported to achieve a monthly goal/target so need to be imaginative.

I am wondering whether any one has had success in using specific and measurable H&S performance parameters, which a bonus is payable where a goal has been set.

My initial thoughts are along the lines of "% of health and safety actions items completed on time each month" seting say a target of 90%. This would be proactive and perhaps ensure more accountability for completing actions that we feel are necessary to improve both behaviours and conditions on the floor.

would welcome any advice out there...many thanks
John



cliveg  
#2 Posted : 07 September 2011 18:23:39(UTC)
Rank: Forum user
cliveg

Hello John
Having experienced the bonkers world of public sector performance management, I would suggest you concentrate on outcomes rather than outputs. Just a suggestion but the view of my H&S team is that the bottom line has to be the number of work days lost due to injury or ill health. It would seem a good idea to incentivise supervisors for cutting the number of work-days lost in their team, or keeping the figure at a low level.
I know from bitter experience that if you incentivise outputs like 'Actions', you simply end up with more and more actions, that get increasingly trivial or nonsensical, and the whole thing can decend into meaningless time wasting.
At a time of diminishing resources, keeping those you have left at work has to be a key management aim.
Good luck!
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