Safety Incentive Award Program

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DDC USA FLEET.com is pleased to present the following program information relating to Safety Incentive Award Programs. After reviewing this introduction please note that we have also included four different program options for you to review when choosing which approach will be best for your company. The options include:

Option 1.

A monthly incentive program that rewards individual employees for their achievement.

Option 2.

A quarterly incentive program that again, rewards the individual employee.

Option 3.

A monthly team-based approach where in order for anyone on the team to receive an award each employee on the team must meet the criteria for the month.

Option 4.

A quarterly team-based approach that rewards for team accomplishment.

We all know that one of the most difficult challenges faced by operations management is that of motivating employees to perform safely. Some managers have concluded, "accidents are inevitable". They consider such business interruptions, decreased productivity and profit losses just a cost of doing business.

Other managers refuse to accept such thinking and continue to search for ways to raise the level of professional performance. They recognize that every accident dollar saved goes straight to the bottom line.

An average company with earnings of 5% net after taxes needs $ 40,000.00 worth of sales for every $2000.00 property damage or worker's compensation claim. Viewed another way, every $2000.00 claim prevented equates to $40,000.00 in additional sales. THIS IS REAL MONEY!

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Gordon Bethune, CEO of Continental Airlines (J.D. Powers airline of the year) said "that which is measured and rewarded gets done". That couldn't be truer when trying to reduce employee accidents and injuries through improved safe behaviors.

We all accept the fact that we as people respond to and learn from both negative and positive consequences. For instance, if an employee violates a company safe operating procedure their behavior is most likely to be met with disciplinary action. On the other hand, I don't know of anyone who doesn't enjoy a special "something" for a job done right, especially if that something is valuable as well as desirable.

It has been shown time and again that a reward given soon after behavior is measured will have a tremendous impact on the morale of the employee as well as continued encouragement for the employee to work safely, thus avoiding any violations of company work rules.

Let's assume that the company has created its work rules, trained the employee in the safe operation of their job duties and disciplinary procedures are in place. The next key is to motivate the employee with a positive incentive approach.

OBJECTIVES OF AN INCENTIVE PROGRAM

• CREATE INTEREST
• INSTILL AN INDIVIDUAL "CAN DO " ATTITUDE
• PROMOTE PEER ENCOURAGEMENT
• REPLACE UNSAFE PRACTICES WITH SAFE HABITS
• GAIN COMPLIANCE WITH SAFETY RULES
• REDUCE / ELIMINATE ACCIDENTS
• RECOGNIZE ACCIDENT-FREE, PROFESSIONAL PERFORMANCE
• HAVE A LASTING INFLUENCE ON THE RECIPIENT

It is critical that as a company you obtain optimum results for the money invested. To achieve this, you must offer employees something of lasting value that is both tangible, useful and most important, should serve as a constant reminder of how they achieved it.

Question: WHY IS IT SO IMPORTANT TO USE TANGIBLE ITEMS INSTEAD OF MONEY AS AN INCENTIVE ITEM?

Answer: MONEY IS SOON FORGOTTEN.

Although most employees will say they want the money, they usually don't in fact remember receiving it. The reason is that money awards are usually hidden in a paycheck and aren't even recognized by the employee. The money is usually spent immediately with no lasting influence. The company has now gained 0% for this investment and the employee receives nothing of tangible value.

A rapidly growing percentage of companies are turning to "TANGIBLE" awards. Many companies have Incentive Award Programs based on budgets of as little as $50.00 per employee per month or $150 per employee per quarter. Program participants state the following benefits in addition to meeting the objectives of an incentive program mentioned above.

• Generates pride through achievement
• Improves customer relations and productivity
• Greater interest in training sessions
• Changes behavior and improves performance

Awards with any amount of utility remind the employee every time it is used or seen that it represents an achievement in safety performance - A LASTING REMINDER!!

COST EFFECTIVENESS

Over the course of twelve months, employees will be eligible to receive products worth a total value between $700.00 and $900.00 per year. The company's actual cost will be $600.00 per year. This in effect gives the employee a 20% - 50% increased value for the company's dollar.

ESTABLISHING THE PROGRAM

1. Which employees? Generally, all operational employees as well as supervisors are included. Management and office staff are usually excluded - although not always. This is a company decision.
2. SPS will then help you develop a letter to be distributed to each employee explaining how the program works, the disqualifying criteria, what the qualifying time periods are, how to order and the importance of reporting accidents and injuries in a timely manner.
3. What are the qualifying criteria? Typically, there are three (3) important criteria used;
   1. No Preventable vehicle or property damage accidents.
   2. No Lost Time injuries.
   3. No written warnings for violating a specific company SAFETY RULE.

Imagine what this could mean to a company's bottom-line if every employee met just these three criteria every month!

CUSTOM WEB SITE

A custom web site will be designed with your company logo and contain all your company specific program information including rules, catalog and certificate redemption information. This will be done at no cost to you!

CUSTOM CATALOGS

Custom catalogs containing all products available for each level will be sent to the company locations for distribution and display. Employees are encouraged to take a catalog home and involve the family when choosing their award / gift.

ORDERING IS EASY

Instead of offering only one item each month, employees receive certificates to be redeemed for items of their choosing.

At the end of the qualifying period, management will simply determine which employees have qualified. This will total the number of certificates needed. They then call or fax this information to the ( INSERT YOUR COMPANY NAME HERE ) Program Center. All companies are encouraged to report their numbers by the 5th of the month following the qualifying period. Certificates will then be created and usually mailed out within one week.

Once the employee has received their certificate, they can go online or call the ( COMPANY ) hotline to redeem their certificate. They can also keep it and add it to future certificates to be redeemed for catalog items of greater value.

Our history with this program has shown this to be the most effective safety incentive program we have ever developed. It's not uncommon for our clients to see a reduction in preventable accidents and injuries of up to 25% after the first 90 days.

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This program works best for both the employee and the company.

Call me to discuss the program in more detail!

Sincerely,

Debbie