Rewards and Incentives

1. Rewards and Incentives Do they work?

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

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

4. 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.

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

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

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

8. Question Is it better to: • Reward people not to do something Or: • Reward people to do something

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

10. Experience Avon Lake Power Plant

12. Experience Avon Lake Power Plant • First Energy • CEI • Orion Power • Reliant Energy • RRI Energy

13. Safety Incentive Program The safety incentive until 2006: • 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) • You could roll it from quarter to quarter and cash in all 4 at the end of the year

14. Safety Incentive Program In 2007 we started changing the criteria • The amount was raised to $100.00 • Not getting injured was 40% • Wearing all your PPE was 40% • Housekeeping was 10% • Training was 10%

15. Safety Incentive Program In 2008 we changed the criteria some more • The amount stayed at $100.00 • Not getting injured was 20% • Wearing all your PPE was 30% • Quarterly audits were 50%

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

17. Safety Incentive Program In 2010 the criteria will be: • The amount will stay at $100.00 • Quarterly audits are 50% • The other 50% - still working on it

19. 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: • Safety/environmental • Job knowledge • Attendance • Productivity • Teamwork/leadership

20. Additional Rewards Movie Tickets • 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.

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

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

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

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

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

32. Questions/Discussion