I work for a large multi-site UK based manufacturing company. To measure each Divisions safety performance each year, we have traditionally used improvements in ‘over three day’ (OTD) Accident Rates + achieving a specific target set for the year (e.g. last year it was 100% completion of rewriting the risk assessments and safe systems of work for all the higher risk tasks).

The second target is not a problem- they have either done it or haven’t, but as some of our Divisions are a lot smaller, one OTD accident in a single year will give them a much poorer OTD rate than a far bigger Division who have had several accidents, so we do a degree of balancing for fairness (taking into account also the severity of the accidents and how preventable they were).

However, the Directors then argue about their scores, all saying they have been unfairly treated. The score translates into a bonus for the relevant Directors and senior managers - I don’t think it’s a great deal of money, but you would think it was millions by the fuss made if they don’t get 100% , and so it’s becoming something I dread each year, not a positive.

What do other companies do to incentivise senior managers to actively support health and safety and meet H & S KPI’s? Does anyone have any good ideas on the topic?

Thanks johnmc, we do have good consultation forums and excellent near-miss reporting, the problem for Directors own KPI, is its got to be absolutely measurable, as otherwise that dispute it, and for those two you can't give an simple measurements. You would think improvements in OTD rates (or near-miss reporting) would be straight forward, but no, even if there has been little or no improvement they still think they should get extra points! And if one Division has only one OTD accident in a year, having not had any for several years, they could get no. or very few, points that year, whilst another Division that has a regular amount of OTD accidents, does slightly better one year (but still several accidents) , they will get more points that the site who only had one accident! I wanted to use audit scores, but I know from past experience that once again they won't agree on why they only got a certain amount of marks fro a section, so that's not going to work. I'd rather scrape a Directors Safety Bonus altogether, as they should be doing it anyway, and increase employees safty bonuses, which I never get arguments about, but, not suprsinglu, teh Directors won't allow that.

Maybe you could consider something whereby the OTD accidents are a different proportion of the site's bonus depending on the number of employees. I would then get the MD/CEO to agree the final formula and then if the relevant sites have an issue they can address it with the MD/CEO. I do not think you will be finding a perfect system, as well you know each idea/method/system has its positives and negatives, and if all else fails remind the directors and managers that those having the OTD's were maybe also unfairly treated and that should really be the primary concern. Monetary incentives are of course often required, but we are all humans and we do not want our colleagues to have an accident, everyone is someone's loved one and/or friend after all, and so some moral incentives could also be introduced. Finance is of course important, it pays the bills, but the more we see the money and the less we see the people then the more we lose the understanding of what we ultimately work for; e.g., for a better life for ourselves, family, friends, etc.

Regards.

As I say, not something i get involved in, but, is it not possible that people in such a position of influence can get figures massaged?
i.e. Directors, or their own ends, after all they exhibit a lot of control over their spheres of responsibility.

I agree with Paul, monetary bonuses for things like accident rates would in my opinion encourage under-reporting. I am in the process of introducing a system where site directors/general managers are set targets relating to amount of proactive safety work that they do. This includes the conducting of site safety inspections, attendance at H&S committee meetings and undertaking of H&S refresher training.

My hope is that by requiring/encouraging them to look at these proactive points we will see improvements in their commitment to H&S and also see Accident Frequency Rate etc fall.

“special attention to safety incentive and discipline programs that have been shown to discourage workers from reporting injuries and illnesses”

Quote from OSHA presentation to National Petrochemical and Refiners Association, May 2010

Over 5 years after incentivisation of underreporting identified as issue associated with BP Texas City explosion in 2005.

They've got this game across the Pond called Safety Bingo.

You take a group of say 5 co-workers. Month 1, say September none of them has a lost time injury accident, you give them a small bonus. October none of them has an LTI, slightly bigger bonus. November no LTI, slightly bigger (again) bonus.

December, you have an LTI in the run up to Christmas. Do you report. Do your co-workers want you to report? (Already mentally spent the bonus on kids' presents).

Suggest you identify a leading KPI for your Directors.

There used to be (may still be the case) one member of UK Contractors Group who linked senior managers' bonuses to their own personal H&S CPD. Appraisal. What X days' H&S training and development are you going to do in the next 12 months? Action plan agreed. If not implemented NO bonus (whatever the manager's perfomance in e.g. profit and profitability). Concentrates the mind in leading from the front.