Rewards and Incentives Do they work?

What Is A Reward? Something of value given in return for action/behavior/outcome

What Is An Incentive? Something of value given in anticipation of desired action/behavior/outcome

Is There a Place for These in Safety?  They both have a role in a comprehensive safety program.  If used in the right manner they can encourage participation.

PROS  Reward desired outcomes  Encourage active involvement CONS  Can encourage non-reporting of injuries  People can “game” the system

Example  Reward Go through year without injury and you get _______________ (gift/money/day off) Go through year without injury and you get _______________ (gift/money/day off) What did you just reward? What did you just reward?

Another Example  Reward The department with the best safety record (incident rate) for the year will get _________ (meal, trophy, day off, etc) The department with the best safety record (incident rate) for the year will get _________ (meal, trophy, day off, etc) What did you just reward What did you just reward

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

Example  Incentive Complete a safety walk down of each area during the quarter and you’ll get ________ Complete a safety walk down of each area during the quarter and you’ll get ________ What did you just reward? What did you just reward?

Experience Avon Lake Power Plant

Experience First Energy First Energy CEI CEI Orion Power Orion Power Reliant Energy Reliant Energy RRI Energy RRI Energy

Safety Incentive Program The safety incentive until 2006: For each quarter you did not get hurt you received $10.00 For each quarter you did not get hurt you received $10.00 This came as a gift card to one of four chains (Best Buy, Wal Mart, Home Depot, Giant Eagle) This came as a gift card to one of four chains (Best Buy, Wal Mart, Home Depot, Giant Eagle) You could roll it from quarter to quarter and cash in all 4 at the end of the year You could roll it from quarter to quarter and cash in all 4 at the end of the year

Safety Incentive Program In 2007 we started changing the criteria The amount was raised to $ The amount was raised to $ 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 Program In 2008 we changed the criteria some more The amount stayed at $ The amount stayed at $ 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 Program In 2009 the criteria is: The amount stayed at $ The amount stayed at $ 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 Program In 2010 the criteria will be: The amount will stay at $ The amount will stay at $ Quarterly audits are 50% Quarterly audits are 50% The other 50% - still working on it The other 50% - still working on it

Additional Incentive In 2009 the plant implemented a “Pay for Performance” program Each hourly employee can receive up to 2% of annual pay. Based on: Each hourly employee can receive up to 2% of annual pay. Based on: Safety/environmentalSafety/environmental Job knowledgeJob knowledge AttendanceAttendance ProductivityProductivity Teamwork/leadershipTeamwork/leadership

Additional Rewards Movie Tickets Each month a safety quiz is published that covers material from the previous month’s safety training. Each month a safety quiz is published that covers material from the previous month’s safety training. All correct quizzes (100%) are entered in a drawing – four winners get four movie tickets each. All correct quizzes (100%) are entered in a drawing – four winners get four movie tickets each.

Additional Rewards Lake Erie Crusher tickets are given out from time to time

Additional Rewards Trinkets Shirts and/or jackets are given out when we reach safety milestones Shirts and/or jackets are given out when we reach safety milestones Meals are provided for exemplary performance Meals are provided for exemplary performance

Additional Rewards Power Bucks Employees can nominate other employees for Power Bucks. These are for actions that demonstrate company values: safety, integrity, communication, etc.

Does It Work?  By itself – who knows?  As part of an overall safety culture - yes

Issues?  Some of the program parts are voluntary  OSHA does not like programs that would encourage non-reporting  There is some administrative workload

Questions/Discussion