Articles & Whitepapers
New Post: Providing An Incentive For Wellness
Is Your Incentive Program A Ticking Time Bomb?
By Bill Sims Jr.
USA Waste had a rude awakening when OSHA levied a $65,000 fineagainst them, charging their safety incentive program caused injury
hiding. Large cash awards tied to working periods of time without
injury caused employees to hide their injuries. OSHA cited USA Waste
Management of Ohio under 1904.2(a) of the record keeping standard (theOSHA 200 Log reporting requirement).
USA Waste Management has a bonuspool that rewards employees with excellent safety records. The pool
also includes good attendance and good work practices. The citation
suggests Waste Management coerced employees to go against medical
authorities in order to falsify records.
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Safety Incentive Programs: What Works?
By William Atkinson
The trend toward implementing incentive programs is based on safety
activities rather than injury results pays off for three diverse
companies.
Even as recently as 5 years ago, the vast majority of companies that
offered safety incentive programs provided cash, prizes, awards or
other forms of recognition to employees for performance related to
"lagging indicators." That is, management tallied up the number of
accidents, incidents and near misses. If the numbers fell below a
certain level, employees would be rewarded. If they were above the
designated levels, they would not be rewarded. Some companies tied the
rewards to individual performance. Others tied them to team,
departmental or even company performance.
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Effective Motivation
A wake-up call from OSHA last year has many safety managers thinking hard about their incentive programs.
Wellness and High Stakes
In an effort to motivate workers to kick unhealthy habits, U.S. companies are hitting them where it hurts: In their wallets."
More firms are placing a surcharge on employee health premiums if their lifestyle contains unhealthy habits or they are not taking actions to exercise and correct bad situations. Bottom line, companies are getting serious about employees not taking corrective steps, especially when the corrective programs are offered by the employer.
Now some employers are wielding a stick as well as a carrot. Employees at some companies who are overweight, smoke, or have high cholesterol, for instance, and who don't participate in supplementary wellness programs, will pay more for health insurance. In extreme cases, employees' insurance deductibles could rise by $2,000. But meddling in workers' lifestyles through financial penalties risks lawsuits, say some consultants and lawyers. Indeed, the U.S. Equal Employment Opportunity Commission says it is looking into wellness programs to see if they sometimes violate the Americans with Disabilities Act.
Starting in 2008, Tribune Co., which owns newspapers such as the Chicago Tribune and the Baltimore Sun, will apply a monthly surcharge of $100 to family premiums of workers or dependents who use tobacco. Clarian Health, an Indianapolis-based hospital chain, will charge employees who are smokers $5 a paycheck. Small employers, who are the most at risk from rising health costs, have gone the furthest in forcing unhealthy employees to pay more for insurance, as they struggle to continue providing coverage.
In most states, people with health problems already pay more for health policies in the individual insurance market. But for employer-sponsored plans, federal law dictates that all workers covered under the same plan must pay the same premium irrespective of their health. Recent legislation granted some exceptions to this standard through the vehicle of wellness programs. Starting in 2008, Kellogg Co., the Battle Creek, Mich., cereal giant, will raise premiums for salaried and non-union employees by $360. But it will also offer what it describes as financial incentives to employees who take a voluntary health risk assessment and participate in wellness programs.
Learn more about our wellness solutions here...
How Successful Safety Incentive Programs Reduce Injuries Without Injury Hiding
A Proactive Approach
These seven practices will help you improve workplace safety and reduce worker's compensation costs.
Many Employers Seek to Replace Cash Bonuses With Other Work Incentives.
Six Ways to Create Suggestion Programs That Succeed
Don't Show Me The Money
Rewarding Employees Smarter
Dispelling Popular Myths About Safety Incentives
"Use your money wisely" - Cash rewards may not make the most of your incentive budget
Hitching a "Smart Ride" -- Using Awards to Motivate Ride Sharing
Turner Bros. Wins Safety Game with Behavioral Incentives
Has OSHA Really Banned Safety Incentive Programs?
The Secrets of Successful Safety Incentive Programs
Consultant Dispels Myths About Service Award Programs
Rewarding Safe Behavior--Without Injury Hiding
The Incentive Dilemma: Creating Corporate Sales Incentive Programs That Work - Paul Shearstone
Tips and Strategies on Reducing Injuries Without Hiding
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