Header Photo  
reward and recognition  
 




To cost justify your program, first you must calculate your current costs due to poor employee performance. Be sure to include INDIRECT costs like management time, overtime, rework, lost customers, to get the whole picture. Total up what you're spending now and show upper management how much they're losing.

Find out how much in NEW SALES your company would have to make to generate enough BOTTOM LINE profits to cover those losses. Call us for help cost justifying your program if you need it. Some national statistics....

*Each lost time injury averages $27,000 in total costs
*Each Doctor Treated Injury averages $3,000 in total costs
*Reducing Absenteeism by 1% can save you TENS OF THOUSANDS of DOLLARS
*Each employee you lose costs you 30% of annual salary to replace & retrain.


COST JUSTIFYING A SAFETY INCENTIVE PROGRAM

Perhaps this information will help you a little bit with COST JUSTIFICATION. Follow this simple method to see how much your accidents are REALLY COSTING YOU (this method was developed by Dupont).

First, calculate your YEARLY accident totals....

NUMBER OF DOCTOR TREATED INJURIES:_______ times $3000=________ Total Cost.
LOST TIMES:_______ times $27,000=_______ Total LTI Cost.

Add both lines together and you'll have your TOTAL ACCIDENT COSTS!


COST JUSTIFYING AN ATTENDANCE INCENTIVE PROGRAM!

When someone isn't on the job, quality, productivity and EVERYTHING SUFFER! But, when someone's absent, you have to pay OVERTIME to replace them! THUS...

Every PERCENTAGE point of absenteeism you can REDUCE saves you $75 per employee per year (assuming your base wage is $8 per hour--if it's more, you save more!). So when Dorsey Trailers went from 7% absenteeism to 1.5%, THEY SAVED $350 PER EMPLOYEE. That means that their UNSCHEDULED OVERTIME COST dropped by... $350,000 in one year!!!!

TO FIGURE OUT HOW MUCH YOUR COMPANY IS LOSING FROM ABSENTEEISM, let's do a little math....Take your NUMBER of DAYS ABSENT and multiply it as follows...

(DAYS ABSENT times 8 times (your hourly wage) times .5)= EQUALS YOUR COST EVERY YEAR FOR ABSENTEEISM.

So for a plant with 2200 days of ABSENT WORKERS and a HOURLY WAGE of $8, it would work as follows...

2200 x 8 x $8 x .5= $70,400 in ABSENTEEISM COST for OVERTIME!!!!!


DETERMINING THE UNISURED COST OF AN ACCIDENT

Take a second and you'll be AMAZED at how much your accidents REALLY DO COST YOU! The National Safety Council calculates that every Lost Time Injury has a total cost of $27,000; every RECORDABLE is $3,000!

Description Calculation Dollars Lost
Profit Lost ________ x ________ x ________ = $________
Units of Production/Hours of Down Profit(Dollors) Produced by Hour
Time Due
to
Accident
 Per Unit
Wages - Time Lost, Injured Worker
($ Not Paid by Workman's Comp)		 Hours Lost - Day of Injury
________
+
Hours Lost - Trips to First Aid
________
+
Hours Lost - Trips to Doctor ________ x
________ x
________
= $________
Wages-Decreased Output ________ x
________ x
________ x 100
 = $________
Percent inefficiency, Injured Worker Hours of Decreased Output Hourly Wage, Injured Worker
Wages - Workers Involved but Not Injured _______ x
_______ x
_______
= $________
Total Workers Involved but Not Injured Hours Lost by Workers Average Hourly Wage, Workers Involved but Not Injured
Wages - Supervisor Involved in Accident _______ x _______ = $________
Hours Spent by Supervisor in Accident Hourly Wage Supervisor involved in Accident
Wages-Safety Mgr.
(Accident Investigation Insurance Claim Proccessing)		 _______ x _______ = $________
Hours Spent by Safety Manager Average Salary per Hour, Safety Manager
Wages - First Aid Attendant _______ x _______ = $_______
Hours Spent by First Aid Attendant Hourly Wage First Aid Attendant
Cost - Company Medical Supplies Used to Treat Injured Worker $ ______ = $______
Cost-Damage to Material and Equipment $_____ = $______
GRAND TOTAL
$__________
Company Dollars Lost on Uninsured Accident Costs




Do you need to improve morale, reduce injuries & work comp costs, boost sales, or motivate your employees to turn in more money saving bright ideas? Are your absenteeism, healthcare costs and turnover spiraling out of control? Our solutions deliver the results you need fast....

For over 40 years, The Bill Sims Company, Inc. has offered employee motivation and recognition programs that have helped large and small firms like yours not waste valuable clock time or money. We provide your business with more than 50 years of employee recognition, motivation and appreciation experience that will help you develop an employee appreciation, employee recognition reward and employee suggestion programs you need to inspire better employee performance, meaningful morale, sales incentive results and bottom-line profits. With employee motivation and morale improvement, you will have sales and performance improvement as well. Through our employee appreciation, recognition reward and employee suggestion programs, your company will continue to improve in employee performance, meaningful morale, sales incentive results and bottom-line profits.

We also offer behavior change programs that will make your work place a safer place for your employees. One client invested $20,000 and achieved $1.3 Million in savings in 9 months alone. Order our free DVD to learn more.