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#1 Posted : 18 February 2005 17:26:00(UTC)
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Posted By Matthew Brown
My company is looking at introducing a monetary incentive scheme for safety, it will form part of the production bonus. It works very simply, all workers will receive a bonus of £X per month and if they have no LTA it will increase until it reaches a maximum. If there are any lost time accidents then everybody will loose the bonus.

This has thrown up some problems, we work a shift system and have several distinct areas of the business.

Problem 1) Should a shift be penalised for another shifts bad performance, especially if they were on there rest period and could not have influenced the accident.

Problem 2) We have separate areas of the business such as despatch and production they do not come into direct contact. So if an accident happened in production then despatch would feel penalised if they lost money.

Problem 3) The guy who had the accident would be blamed for loosing his mates a reasonable amount of money and reporting may go underground. We have worked very hard to get the incident reporting up and I am worried about this stopping.

The last company I worked for had a system where people were given a gift at Christmas if we had had no a lost time accidents that year.

Do any of you have such a system in place, if so how does it work, how do you administer it?

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#2 Posted : 18 February 2005 17:43:00(UTC)
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Posted By Merv Newman
I am totally totally totally against monetary payments for "good" safety performance. They lead to lying, cheating, resentment and strikes. What happens if a drunken contractor runs down one of your employees ? Who loses ? And I will rarely accept that an injured employee was 100% responsible for the injury. And money just paid out without the social element of someone saying "thanks, you've done well" is just money. A pint at the pub or a tank of petrol.

Send an e-mail to neil budworth (sorry if I've spelled the name wrong neil, it's been a while) and ask him for a copy of his article on measuring positive safety actions. Then design an award scheme around that. I've done it, can send you a copy but you'll have to translate it from French, and it works.
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#3 Posted : 18 February 2005 17:47:00(UTC)
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Posted By Tom Clark
It's good for company records, because it will drive reporting underground. Bad news for all concerned.
Why not trial the instant reward idea? A card is given by the supervisor etc to anyone observed using the correct PPE or carrying out a task in a safe manner.
This card can then be exchanged for a small gift (H&S related) or points collected for something larger over a period of time. Some would call it a SWOP (Safe Working Observation Program) card.

What to put and say on the card:
1. Company Logo
2. Safe Working Observation Program.
3. You have been observed practising sound safety habits or doing something to prevent an accident. Present this card to the Health and Safety Office and explain what you did. You will receive a small gift as a reward for your safety awareness. Points may be collected towards a larger gift at a later date.
4. Thank You

Hope it helps!
Tom
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#4 Posted : 18 February 2005 17:47:00(UTC)
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Posted By Matthew Brown
Thanks Merv.

In my experience the injured party is only 20% to blame for his injuries and in our case it is a mangement failing.
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#5 Posted : 18 February 2005 18:02:00(UTC)
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Posted By Merv Newman
Matthew, I will accept your 20% as an average. Sometimes it is zero, sometimes 80% Very rarely (it can happen) 100%

The SWOP idea is good but the rewards should be given by management/supervision, not by safety. And there should always be a few words of "thanks, well done" never "god, it's you again !"
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#6 Posted : 18 February 2005 18:02:00(UTC)
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Posted By Raymond Rapp
Matthew

I totally, totally agree with Merv on this one.

Providing monetary reward for good safety is both morally wrong and is fraught with practical problems, some of which you have already observed. Invest your money in better education, training and PPE.

Regards

Ray
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#7 Posted : 18 February 2005 20:31:00(UTC)
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Posted By Delwynne
At the risk of being shot down in flames I have to disagree with the previous postings. We have recently introduced a safety bonus scheme which is popular (ish) with the employees and appears to be helping with our HSE performance. Each crew is inspected every week on health, safety and quality and scored, the percentage score determines the bonus payable. Operatives are rewarded for reporting unsafe conditions and minor incidents. The only time bonus is lost is for a RIDDOR reportable. (Allthough I do take on board Mervs comment on this one!). The fact that the operatives know that for example they will lose money if the guy working with concrete is not wearing his safety glasses has turned around 'peer presure' from being a negative to a positive function. The introduction of the scheme has also brought HSEQ 'out of the closet' as it were. Construction has historically been very production driven and safety was 'ignored' if production pressures mounted. Now there is much less reward for production and more emphasis on doing the job properley. Until you remove the 'production' blinkers then in my opinion no amount of training, shouting or stamping your feet will make the blindest bit of difference. From a moral stand point - I would rather be sending the message that doing things well will be rewarded than doing things quickly and wrong?
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#8 Posted : 20 February 2005 21:00:00(UTC)
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Posted By Stuart Nagle
The person receiving finacial reward for no LTA's in the year is the Health and Safety Manager/Officer/Advisor or whatever, not the general population.

Rewarding the general workforce would almost certainly cause reporting to go underground, but in the case of the H&S Manager/Officer/Advisor or whatever, maybe an incentive.....!!!

You know the persons to whom I am referring when I speak of the H&S Manager/Officer/Advisor or whatever.... they are the ones that gets it in the neck when things go wrong whilst the population make claims and generally improve their bank balance...

Before there is the cry of 'Hang him', I also sympathise with those who are genuinely injured at work, through no fault of their own, and who's family and themselves suffer, or at worst, loose a much loved family member....I have no intention nor do I include this group in my assertions....

There are distinctions to be made.... I was just trying to make one... Apologies If any offence caused....

Stuart
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#9 Posted : 20 February 2005 22:32:00(UTC)
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Posted By Adam Jackson
I also have to disagree with the first few posts as done correctly, incentive schemes can be a great way to get safety to the forefront of everyone's minds, (not the only way, but a very useful tool as part of a wider package).

In the last company I worked in were having around 72 LTAs (measured as one lost day or more rather than the RIDDOR standard) which was terrible, even for agriculture. We put in a whole raft of safety improvement measures but still got those idiotic niggling little cases where a splinter in a finger was giving three days off work (that's a genuine example, and there was no secondary infection involved). People were using safety as a means for time off.

We put everyone into groups of usually 6 to 10 people, loosely based around their normal working locations / jobs, (to give a handle on scope - total employee population, around 1,800 to 2,000). Each person then received a £200 bonus in their Christmas pay packet if their group went the year LTA-free. The bonus was accrued quarterly, (but paid annually) but if one member of the group had an LTA, all members of that group lost their bonus for that quarter.

(The only difference was office workers who had the chance at a £100 bonus as, while offices are not risk free, they're a damn sight safer than working with the animals or machinery on farms. And without wishing to confuse the issue, I did this in all our operating countries with the bonus being equivalent to £200 in their local currency).

Reasoning for setting it up this way:

1) To get people away from their firm mind-set that they were not responsible for their own safety and some mythical being called "the management" was. While managers and the company do have a responsibility, the employees do as well and acceptance of this was what was missing.

2) To use peer-pressure - if someone has a very minor accident and took time off, it was not only them that suffered.

3) To get them to take on some responsibility for their own workplaces instead of just leaving it to others.

3) The bonus was paid quarterly so that one LTA in February did not mean they lost their bonus for the whole year - there was still something decent left to aim for.

There are some exemptions written into the system, most notably that if someone was injured as a result of something of which the company was aware but to date had taken no action (for financial or whatever reasons) then they did not lost their bonus. As a side issue it was amazing how near-miss and general hazard reporting shot up due to this clause - another benefit to us.

To back it up we developed an excelent return-to-work system so if someone was injured or ill then, subject to medial approval, we could find work for them. Nobody was forced to accept it but peer pressure really did work in making sure that nobody took time off for a splinter. And where injuries were more serious in all the years of running this scheme we have not had one person complain of victimisation by their colleagues if they have been injured seriously enough to warrant time off.

The unions agreed and fully supported it. As it was based on lost time its hard for people to hide an accident - if they're not in work we know about it even if its not reported unlike first aid or other non-lost time injuries.

The result we saw was not as was posted earlier that accidents were being hidden and under-reported, but as I have said, reporting shot up, employees demanded improvements and changes which was great, oh, and in four years our 1-day or more LTAs went from 72 a year to 9.
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#10 Posted : 21 February 2005 00:02:00(UTC)
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Posted By Raymond Rapp
Clearly, there are some mixed views here and whilst I am firmly on the side of no payments for LTIs, there does appear to be some scope for other incentives and ideas.

I like the way Delwyn has presented his case, not disimilar to another posting. As my tutor once said, 'there are no right and wrongs in health and safety, provided you can justify your actions.'

It is true, some people do use an injury at work as an excuse for time off. However, this is often indicative of other problems and people voting with their feet. Human nature does tend to respond well to incentives but they do not have to be cash incentives. Sometimes a pat on the back can do wonders for morale or as Mark Twain wrote - 'I could live for two months off a compliment.'

Ray
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#11 Posted : 21 February 2005 08:47:00(UTC)
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Posted By Gerry Knowles
I am not against a reward system in principle, you do however need the right culture where people are already used to reporting incidents and injuries as part of a sound safety culture. In addition to this paying people hard cash is always a problem as greed soon sets in and people soon become forced by peer pressure into not reporting.

I used to work for a big American chemical company. We had an incentive scheme. It entailed giving every employee a gift when 1,000,000 hours had passed without a LWC (Lost workday Case this was in palce of the 3 day rule which was replaced by a 1 day rule) or any other type of company reportable incident or injury. In addition if the site went 1year without a recordable another small gift was presented.

This scheme work well for all the time I was with the Company. The gifts ranged from fireblankets to first-aid kits to company watches.

So it can work but the culture and the type of gift has to be right.

Gerry Knowles
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#12 Posted : 21 February 2005 11:20:00(UTC)
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Posted By Adam Jackson
Out of interest, we varied the payment as well. The standard was £200 or equivalent in local currency but there was the option to modify it as the local managers and employees wanted.

In the UK and Europe (not that the UK isn't part of Europe...!) they took the cash, in America some sites took cash while others preferred a half days holiday earned per quarter giving two extra days a year per person - mainly as holiday entitlement over there is so dire. In Brazil they went for a sack of rice and small cash payment. And in Indoneisa it was done with cash but much reduced - as the local manager pointed out to me, give them £200 and the family will retire for a year!

Its not a cure-all panacea and needs to be done correctly, but it can be very very useful.
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