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Reward Star Performers
With Star Perks!


A few of the many success stories from our clients who use the Bill Sims Star Perks Reward program...

To arrange to speak with any of our clients contact us at 800 690 1860 and we’ll set up a phone interview for you.

"We slashed absenteeism by 60% and the Star Perk Program is the biggest factor in making that happen. After negotiating a change in our union contract the union president told me, 'We'll pay for part of our insurance, but if you try to take those Star Perks away, we'll have to put on the boxing gloves.!' I knew right then we had a winner with our Star Perks Program."
Kenny Sawyer, Dorsey Trailers

People are using the program from manufacturing to schools, individually tailored to meet your requirements. Call and see how you can make positive gains through the Bill Sims Star Perk Programs. An easily administered program for employee recognition. It could be your best investment in the years ahead.

"For an investment of $7,500 we received a return in excess of $125,000."
Vic Anapolle, Darex Container Products

Vic Anapolle, Darex Container Products Let us show you how our BRIGHT IDEAS program can produce similar results. A properly designed and implemented suggestion program can return significant bottom line results. It will also be a powerful assist to many of your other efforts. It is all about recognition or saying thanks.

"Just four months after we implemented the new incentive program, the group has received 52 valid Bright Idea suggestions." Russell F. James, Carolina Power and Light

Suggestion programs have been used for years. Some with excellent results and many more with the opposite outcome. We know how to assemble a program which will produce dramatic results. Together with our unique rewards and tracking systems you will have time to pursue other objectives.

Watch our video and learn more!

In just one year, we cut accidents by 44%, and put $100,000 on our bottomline.
John Johnson, CEO Sunbeam Bakeries

"The Star Perk Program helped us reduce injuries from 285 lost time accidents to only 14, without injury hiding."
Heartland Foods

"On the last day of our program a driver damaged a new Ford Taurus he was transporting, disqualifying him for the final award in our incentive program. He drove four hours to ask me face to face, 'If I buy this car, will the incident count against me?' When I asked him why he would want to buy a new car just to get the final award, he said, 'I can't be the only guy in my terminal without one of those JACKETS!"
Biff Wilson, Motor Convoy Company

"Your company has done a fantastic job for Cooper Smith. The Cooper Smith Star Perk Program and your help and direction have been instrumental in helping us reduce accidents AND promote a safe working environment."
John Johnson, President and COO Cooper Smith, Inc.

"In the first nine months we boosted participation in our wellness program by 32%."
First Atlanta Bank

"Before we started using the Star Perk Program, our 1000 employees only came up with three quality improvement suggestions in 1989. In 1990, after using the Star Perk Program for only nine months, we received over 130 new ideas! Just one of the ideas paid for our program TENFOLD!"
South Carolina Electric & Gas

"The Star Perk Program is cranking out good ideas in Kentucky, and saved Johnson Controls over $304,000."
The Wall Street Journal

"Florida Power reports an investment of $5,000 in Star Perks, and over $100,000 in savings."
The Tamp Tribune

"Just four months after we implemented the new incentive program, The ALARA group has received 52 valid ALRA suggestions. This is an overwhelming response considering that we only received 15 last year, and only 4 the year before! We're grateful for your support. Thanks again for such an innovative promotion."
Carolina Power & Light

"Thanks to your program, our lost time injuries have dropped almost 70% over last year."
Major Chemicals Manufacturer

"The program has been a real hit! I have people standing in line each morning to see our scores... I would never have believed your program would have generated so much success!"
Dan Kingsley


Weyerhauser says...

"Star Perks has really been successful at our location. We have around 335 employees and started the program January 1, 2004. We have completed 110 days without the first recordable incident, and only a couple of first aids. We have completed almost 750,000 man-hours without a lost work day. Our goal is to get the 1 million man-hour without a lost time. This should occur around September. Our next goal is complete the year without a recordable. This program has been easy to administer and is user friendly. We are very pleased and the rest of our company is asking more questions about the success we are having at our location."
Thank you,
Jimmy Welch --Weyerhauser


Texas Mexican Railway says...

James Riney our General Manager, Wallace Guerra, a locomotive engineer with35 years service without an injury and I will be attending a ceremony this Thursday, May 13 in Washington DC to receive a Certificate of Commendation from the E. H. Harriman Memorial Awards Institute, under the auspices of the Association of American Railroads. This commendation is being presented to the Texas Mexican Railway for having more than 2 years of continuous improvement in our safety record.
I believe that your "Awards of Excellence" program was one of the leading reasons in helping us to improve our safety record.
Victor Garcia, Texas Mexican Railway


Mariner Healthcare says...

"We are a large nursing home/hospital chain w/over 50,000 employees, spread out all across the United States, and this program has really worked well for us. I have building administrators calling me wanting their prizes when they find out there building is injury free for a specific time period. Our experience shows that the employees like to have a tangible award. Something they can put their hands on. They don't want to have to wait to send something in to get their reward. The Star Perks Program can be adapted to whatever award system you want to use, and that is what makes the Sims program work.

The service we have received from them has been wonderful. Everyone at the Sims Company has been wonderful. All the items they mail out have always arrived as promised and all shipments can be traced through UPS. This helps tremendously when it comes to proving to buildings that the "prizes, posters, and gifts" are there in your building somewhere.

When we started this program we didn't expect the success we had. We actually under ordered gifts and had to have more made. Our losses went up from a 75% success rate in 2001, to an 82% success rate for 2002. So, 82% of our buildings are receiving gifts this month for the March/April award period. Like I said before, they want their gifts. All in all, we are very pleased with the level of service we receive from both Bill and his staff!"


Cathy Turbidy of Waste Management Says…

The program is going GREAT. No injuries to report this year (and with two major outages that was impressive). Employees responding well and they like the new program.


Phil Walsh of Hunter says...

The facility has just been audited by OSHA and been awarded the VPP Star level. Paul credits both their internal programs and Sims for the progress that they have made during the past two years.

Below is a summary of their safety performance since starting the program. The incident average for their industry is 7.8. In 2000, they were 6.14. In the next year they dropped to 5.14 and 2.66 in 2002. So far, there has not been an incident for 2003. Over this period they have not incurred a lost time incident and have just reached a million man-hours with a lost time; very impressive results over a two- year span.

One interesting comment: During the OSHA review, they were questioned about the free Sims trips and how they were being awarded. Clearly, they were looking at injury hiding. Phil showed them that the trips were awarded on the basis of safety contribution. This satisfied them.


Leigh Anne Salmon-Bassinger, RN, BSN
Coordinator Occupational Health for Jefferson County says:

Yes, you should have no additional points from our employees. We have closed our books on the program, and the points Cecelia sent you last week are the last of them.

Thank you so much for working with us to get these final points entered! I have truly enjoyed the experience. I hope that in the future, should we have budget approval, that we can again do business with your company.


Richard Marr, Manager of Safety & Environment for The Wine Group says...

Thanks for your offers and the assistance you give me. Right now I think we will keep things the way they are. The plant that I am at just achieved 60 days accident free. This is the first time in our history we have put together this long of a string. We have put together a program using points as recognition for achieving different benchmarks and it seems to be gaining speed now. We also give out points for turning in a safety suggestion using a new program we have developed using some of the ideas from your program. We are still handing out scratch off's as well to help keep safety in the forefront throughout the day.

All in all things are going very well. This facility alone has decreased their OIR from 20+ to under the industry average of 8.4. We have put in a lot of hard work, but the Bill Sims program has been the only recognition we have been using.




12-05-2002

Bill Sims Co.
PO Box 21279
Columbia, SC
Dear Bill,

I enjoyed working with you and the program was a great success. Not only did it generate a lot of excitement with the Craft; your company very professionally presented the program. The catalogs, price sheets, safety grams, safety suggestion and hazard elimination forms, wheel of fortune and safety suggestion boxes, etc. all gave the program a very professional look.

The grand prize drawings at the end of each month were extremely popular also. Something we did at the end of the project was offer additional Star Perks to each craft if they finished up with no doctor cases or safety violations. This is typically when we can have fraudulent claims or accidents happen because people are complacent. The flexibility that Star Perks Program gives an employer is great because you can adapt to fit times like this. In addition the quality of the merchandise you provide with the program is excellent.

I would recommend your program to any project or company that is looking for a positive approach to accident prevention.

Brian Spraker




Cathy Atkinson of WVNS says...

Dear David - I've responded to your questions below and hope this serves your needs. I have to say that working with the Bill Sims Company was a dream. Bill Jr. took most of the stress away from me for starting a brand new incentive program - he and Bonnie Sims were a delight to work with. If you have more questions or concerns, please don't hesitate to call or email me. My business number is (716) 942-6532. I wish you well in your endeavor to have a successful program - it's exciting to see your co-workers get recognized for their efforts and having your management and customers thrilled with the results in meeting their goals and objectives! Developing, implementing and managing this program was definitely a highlight of my job! Good luck. Cathy Atkinson

Hello Cathy,
My name is David Collins. I work for Highland Industries Inc. and we are considering using The Bill Sims Company to better our Safety and morale record in our facility. I was given your name and email address as a reference to perhaps help us in determining if this program will work for us. Specifically, how did this program work for you?

Cathy Atkinson (CA) First, let me explain why we chose this program. I worked at a nuclear waste cleanup facility that has a heavy emphasis on environmental protection (as you can imagine). I was the Chairperson for the Pollution Prevention/Waste Minimization Program, which was mandated by the Department of Energy (our customer). In November 1999, every DOE site received new national goals to meet, which included energy conservation, waste stream reduction and elimination, and recycling, etc. Our customer told me to do whatever we needed to do to meet these goals and recognize/reward employees for doing so. We already had a safety program in place that was using another system for rewarding people - I was involved in that. However, that program and another suggestion program were cumbersome and viewed by employees somewhat unfavorably. So this was the company's third incentive program - I knew what didn't work, so that made my job easier.

I rounded up a small group of volunteers and we benchmarked 9 other companies to find out what they were doing to meet goals and reward employees. During this research, the Bill Sims Company was discovered and we decided to outsource our program using a company with experience in developing incentive programs, as well as carrying the inventory in their warehouses, etc.

We didn't use this for our safety program, so had different goals and objectives to measure. However, it is critical to have clear and specific goals to meet. We were able to track and measure how we were progressing on a monthly, quarterly, and yearly basis. This served us well in justifying our entire program to both our customer and management team. We far exceeded customer expectations in cost savings and avoidances as well as the numbers we had to meet in energy conservation, etc. Our program was recognized at a national level for the innovative incentive program we had developed.

David Collins (DC) DC) How did it measure up in reducing your recordable accidents and morale issues with your expectations?

(CA) Regarding morale issues, at the time we instituted the program, there were serious morale and budgetary issues. Downsizing was ongoing - voluntary separations and retirements, and layoffs all occurred from 2000-2002. (I left the company voluntarily in Spring 2002 to start my own company.) However, this program was a bright spot both for the company and the customer - we received lots of positive attention internally and externally. As a matter of fact, the program was one of the key highlights in a special EPA recognition program we participated in. Employees were able to focus some of their attention to making a difference in the workplace, get recognized for it, as well as rewarded with gifts of their choice.

(DC) What is your overall opinion of this program?

(CA) In my opinion, using the Bill Sims Company was one of the best things we ever did to kick-start our program in meeting our goals. It provided clarity for the entire workforce on what we needed to do and I was able to provide much better results (and reports) to our customer. Bill Sims, Jr. was extremely helpful in helping us design this custom program. We held several conference calls both with and without my team. Use of e-mail made our work much smoother and more efficient while developing this program as well. He was always quick to respond to any questions or concern before, during, and after our program was in place. It was a pleasure doing business with Bill - he definitely made me feel we were a valued customer and wanted us to have a successful program.

(DC) Do you take advantage of the free trips? How does that work for you and your associates?

(CA) Yes, we had quarterly and annual drawings for the free trips tied in with special events. Employees found it almost "too-good-to-be true" when they received the certificate for the free trips! Most all of the employees, however, chose to redeem their trip for catalog gifts instead. But, the posters Bill provided emphasized the grand prize trips, which created excitement and enthusiasm to participate in our program.

(DC) If it is possible could you please tell me how much you spent per employee?

(CA) We allotted about $30/person a year for this program - return on investment was incredible. In the first 18 months of the program we had cost savings and avoidances of over $2.2M!

David Collins
Training/Safety Coordinator
Kernersville Finishing Plant




Award of Excellence Turns on the Lights for the Department of Energy

By Bill Sims, Jr.

The Situation
The West Valley Demonstration Project is a unique operation within the Department of Energy. It came into being through the West Valley Demonstration Project Act of 1980. The Act requires that the Department is responsible for solidifying the high-level waste, disposing of waste created by the solidification, and decommissioning the facilities used in the process. The WVDP is a U.S. Department of Energy environmental cleanup and waste management project located about 35 miles south of Buffalo. The Project is conducted in cooperation with the New York State Energy Research and Development Authority.

West Valley Nuclear Services Company, part of Washington Group International, manages and operates the WVDP. The Waste Minimization and Pollution Prevention Program is an integral part of the effort to educate and encourage employees to minimize waste and prevent pollution to protect the environment both on a local and global scale. The Program is also responsible for providing reports both on a federal and state level regarding the amount of waste generated and minimized. In November 1999, the Secretary of the Department of Energy issued several national goals for all Department of Energy sites, including the reduction all types of waste streams (radioactive, hazardous, industrial, and sanitary) through the 3R philosophy of reduce, reuse, and recycle, as well as conserving energy and buying recycled products.

The Snag
Although the Waste Min/P2 Program had been in place since 1994, participation in the program by all employees was not clearly visible or seen as effective by the customer, even though many employees actually did contribute to minimizing waste streams in their daily work activities. Tracking all of the various initiatives and activities was difficult to document as many employees simply did the work but much of what was being done was not captured in the reports generated. As anyone in business knows, if you can’t quantify actions or measure progress, it appears that little or nothing is being done.

At the time the new DOE goals were issued (Fall of 1999), Cathy Atkinson was designated as the Lead Person for the Pollution Prevention Program and Chairperson of the P2 Committee which consisted of about 40 employee volunteers. Ms. Atkinson met with her DOE counterpart to discuss new ways to meet the new goals. As Ms. Atkinson said, "We wanted to find a way to recognize employees for the good things they were doing, encourage them to do more, and have documentation to prove that we were reducing waste, etc. to meet our goals."

It was determined that a group of volunteers headed by Ms. Atkinson would bench mark similar companies, both in the government and private sector, to learn more about how they encouraged and recognized employees for helping companies meet their goals. The team of volunteers (about 7 people) researched several companies, and also searched the internet for information.

The Solution
As part of the research conducted, The Award of Excellence Company was located on the internet, contacted, and as a result a packet of information was sent to the team and management for review. Of all the incentive programs the team reviewed, The Award of Excellence offered many benefits that the others couldn’t offer, in particular, expert guidance in developing a customized incentive program to meet specific goals, plus this company took care of the inventory of all gifts and provided promotion material, and much more.

Several all-employee kickoff meetings (due to various shifts) were held at which Ms. Atkinson and the senior management from both WVNS and DOE promoted and encouraged employees to participate in the program. Additionally, an all-employee letter was sent out from the President of the company endorsing this program, articles were put in the company newsletter, and promotional material was distributed throughout the 2 sites. E, employees started submitting their ideas quickly. Some were skeptical as the program seemed "too good to be true". As Ms. Atkinson explained, "once the word got out that this was a no-gimmick program, people started coming up to us (the other teams members and me) asking what they needed to do to get those great gifts."

The Savings
According to Cathy Atkinson: "In the 18 months that I was lead for this program, the company realized over $2.2M in cost avoidances and savings by using this program. There were 183 suggestions made, with 63 ideas actually implemented. As a result of utilizing this incentive program, we able to document what was being done to reach our goals and justify the value of the entire P2 Program. Our customer, the Department of Energy, gave us very high ratings for developing such an innovative and cost-effective program. At the national level, the program was recognized in the DOE Pollution Prevention newsletter and was one of the highlighted achievements when WVNS applied for the Environmental Protection Agency’s (EPA) Performance Track Award."

The Satisfaction
Cathy says: "The employees loved this program! Because the goals and criteria were clearly stated and provided on every suggestion form, employees knew what was expected and could place their efforts in the areas they had direct knowledge about. They also knew up front what they could expect for their efforts; meaning, their level of participation would enable them to receive 'X' amount of Star Perk tickets and a chance to win the Grand Prize every quarter."

Because the team that reviewed the suggestions on a regular basis (every 2 weeks), employees received feedback in a timely manner which served to keep them motivated and working on implementation of the suggestion, if it met the specific criteria and was accepted into the system. Employees also were able to pick out the gift of their choice and could share the gift catalog with family members, if desired. Once the person received and submitted their tickets to The Company, their gifts were shipped directly the employee’s home. It became more personal to the employee and their family, as both saw the rewards for participating in this program.

"I believe we were able to instill a stronger culture of the purpose and goals of the Waste Minimization and Pollution Prevention Program not only with our employees, but with their families as well by using this approach in recognizing and giving value for ideas submitted by the employees." Certainly, both WVNS and the Department of Energy will agree that this program has paid for itself many times over, not only in cost savings but in minimizing waste, saving energy, and promoting affirmative procurement - the goals set forth by the government at the inception of this program. Overall, The Award of Excellence Program provided a win-win situation for the employees at the West Valley Demonstration Project, the contractor (WVNS) and customer (DOE and NYSERDA).

Contact Person: Bill Sims, 800 690 1860, www.billsims.com, bill@2billsims.com




Jan Crawford of Georgia Pacific says...

Georgia-Pacific Corporation
26 County Road #122
Oxford, MS 38655
December 31, 2001

Bill Sims, Jr.
Award of Excellence
Bill@billsims.com
114 Centrum Drive
Irmo, SC 29063

Re: Award of Excellence Incentive Program

Dear Bill:

We have just completed our initial 15-month stretch with the Award of Excellence incentive program so I wanted to give you an update of how it went. As chairman of the Rewards/Communication/Publicity committee within our safety organization, the program assisted me greatly in meeting the committee's goals. One of our primary goals was to improve employee involvement within all aspects of safety. We also wanted to shift to proactive, behavior based safety systems. Through the program you customized specifically for our organization, we have been able to accomplish both. We had just completed our initial application into OSHA's VPP program and were awarded STAR level. In order to maintain STAR level, we needed to move forward and continue to improve. I feel confident that we have done just that by way of this program.

Of course, as with any change, some resistance was felt at the onset of the program. Once we ran the tax-free aspects of the program by my superiors and legal department, our committee felt strongly about trying the program. As employees began winning trips and ordering nice things with their "Star Perks", the program really took off. The 2nd Kickoff you recommended about halfway through the program really gave it a shot in the arm as well. Many folks who were not interested originally were anxious to get involved at that point. We also wanted to tailor the program to the things that were really being successful and utilized. Through an employee survey, we identified some minor changes that will make the next version of the program even more productive. Your patience and cooperation with all of our requests is definitely appreciated.

I also wanted to mention the online sweepstakes your company has going. As you know, one of our employees, Ron Griffin, was one of the 2001 winners. During our Christmas meal, we surprised Big Ron and his wife with the certificate. Not only did a well-deserving, hard-working, great person win a wonderful gift, but also it served as a great incentive for all of us in attendance. Employee morale is hard to put a price tag on. Thank you for that.

Though I will not be serving on this committee going forward, I have submitted my recommendation to continue the program for another year. Everyone is looking forward to it!!!

Best regards,
Jan Crawford
Plant/Regional Controller
Oxford Operations
jgc




Cathy Atkinson of WVNS says...

Hi Bill - Just wanted you to know the success of our program to date. I just checked our records and they are: $1,337,737 in cost avoidances and savings. We've had 163 ideas submitted, 63 implemented, 11 rejected, and 89 accepted (which folks may or may not be working on). Currently, we have about 10 ideas awaiting team approval. Not bad, for 6 months into the program!!!

Additionally, we got special recognition in the national Department of Energy (DOE) newsletter on Pollution Prevention (January 2001). It sure feels good, doesn't it?

I believe it's been a very worthwhile program for the employees and the customer. Your help and the help of an extremely dedicated team have made this program something we can all be proud of. Thank you.




Reward Star Performers with Star Perks!
BILL SIMS STAR PERKS MAKES HEADLINES!



The Wall Street Journal - April 3, 2000

Many employers seek to replace cash bonuses with other work incentives.

Merchandise and travel awards are more memorable with employees, officials say. Diebold Inc, Canon OH, which makes automated teller machines, recently scrapped cash for sales people as lacking trophy value, says Jerry Bryan, marketing services manager. "Recipients tend to spend their cash incentives on routine expenses such as house payments or braces for their children", says the Society of Incentive and Travel Executives.

When American Express Incentive Services polled 1,101 workers, 29% said they used their cash rewards to pay bills and 18% couldn't remember what they did with the money.

MasterCard International, has replaced cash bonuses for its employees with hotel, show-ticket, and other gifts.

A customer-service rep for American Century Cos., a Kansas City, MO, mutual fund firm, refused to work on Y2k problems over New Year's after learning that $250-a-day bonuses were pretax, not after tax.




What Inspires People to Run Marathons?

It certainly takes more than a T-shirt at the finish line to encourage that level of commitment.

In the same way, it takes more than rewards---money, merchandise or travel---to inspire people to run your company's marathons. We believe incentive programs involve far more than incentives--results are what really matter. Ultimately, incentives are about people achieving results: how you can help your participants finish---better, win---their races, whether the distance is long or short.

Consider these three elements when you plan your program...

  1. The goal. Where there is no goal there can be no measurable improvement. The same can be said for a goal that does not elicit personal commitment from those expected to achieve it. We'll show you how you can best get participants' buy-in to program, team and individual goals.
  2. The motive. Your company has business reasons for setting goals, but the people who achieve them are more likely to do so for emotional reasons. To improve performance requires eliciting the emotions that cause people to care deeply about achieving an objective or goal.
  3. The results. When you purchase a program from us, you're buying results. Solid, Time-Tested, and effective.

So if you're considering cash as an incentive program, consider this....

Mazda Motor of America, Inc., wanted to accelerate sales of its light-truck series. They implemented an incentive program awarding one group of salespeople with cash and another with merchandise.

When the final results were tabulated, it was confirmed that all classes of dealerships in the MERCHANDISE GROUP had generated significantly better sales results than had their counterparts in the CASH GROUP. The data was compiled and analyzed by ViMarc, Inc., an independent research firm, and found to be statistically significant at a 95 percent confidence level.

Call us today to get your record-setting incentive program started--your people will be running circles around your competition in no time!




Safety Incentives Can Be Fun & Simple

By Bob Nelson, Author of the bestseller business book,
1001 Ways to Reward Your Employees
(Call 760-743-5030 to order a copy of Bob's book)

Here is an idea that has had much success in recognizing safety in operations of all types. Safety Perks is a simple employee recognition tool, developed by Bill Sims, Jr., at the Bill Sims Company, Columbia, SC.

In the program, employees receive scratchoff Safety Perks for meeting goals set for them, including attending safety meetings, and making suggestions, working safely for a month as an individual or as a team. Employees scratch off their Star Perks to reveal prize amounts of $20, $50, or $100. Even a non-winning coupon is worth $1 in credit toward the purchase of select merchandise.

"The sense of excitement this program creates is really contagious," says Sims, "because employees see their co-workers earning 50 or 100 Star Perks and they know they might be next to win." Since every Star Perk is always worth at least one dollar, no one is demotivated by getting a loser.

Employees save their Perks and order from a vast catalog offering thousands of gift options. Items in the catalog all bear a company Excellence logo and can be further customized for each company.

Better Than Cash
Sims initially started working with one company using cash as a motivation tool. Their $20,000 budget only put $11,000 in the pockets of their employees after taxes. And, eight out of ten employees who received cash couldn't remember when they got it last and weren't sure what it was for. In a revamp of their program, the entire $20,000 investment was able to be awarded tax free to their employees through Star Perks.

Unlike cash and store certificates, where you can lose half of every incentive dollar to taxes, this program can be set up as tax free, delivering more bang for your buck.

Value of Personal Touch
Sims says many clients will give 10 Star Perks to each manager on one day of the month and ask them to go find 10 people doing something right and hand out the Star Perks. "Just having something to hand their employees helps these managers get over the hump and go out and recognize important behaviors," says Sims. The context of the award gives it far more value than it would otherwise have without a personal touch.

Star Perks Pay Off
Heartland Foods in Marshall, MN was experiencing 285 lost-time injuries every year doing turkey processing with workers from Somalia, many speaking no English. in just one year with the program, lost-time injuries were cut to 14. According to National Safety Council statistics, each losttime injury cost an average of $27,000. Total direct and indirect savings were estimated at $7,317,000 based on a budget of only $25,000 per year.

Not Just for Safety
Many clients are renaming the program Star Perks and expanding it to address all types of performance, including suggestions, customer service, and health and wellness. For example, Southern Carolina Electric & Gas received only three Bright Ideas per year from 1,000 employees. Rewarding those ideas with Star Perks stimulated 137 ideas in just 9 months, with one idea saving $30,000.




Safety & Health
January 1997
By Doug Toft

SAFETY INCENTIVE PROGRAMS
"Three Questions That Promote Success"

Synopsis: Though successful incentive programs differ widely in content, their underlying processes are consistent. Companies that succeed with such programs ask questions that lead to clear goals, meaningful incentives, and long-term follow-through. These factors can be more crucial than the type of incentives used.

Any manager who decides to start a safety incentive program faces a bewildering array of options. The goal seems clear enough-to promote safety on the job. Yet one company offers steak dinners as an incentive to employees who go for a quarter with no lost-time injuries. Another offers gift certificates to Wal-Mart, and a third offers straight cash awards. The question remains: What incentives will work for my company?

This question is a powerful one-and not always the most important. People who are new to incentive programs often focus on the content of the program, e.g., what kinds of incentives to offer. Though this question is key, it's also crucial to ask the "how questions." Such questions reveal the processes that drive successful incentive programs. Though these programs differ widely in particulars, their underlying dynamics are surprisingly consistent.

Incentives-Everything from Bananas to Boats
Begin with a pause to consider how much the term incentive includesalmost any item that human beings value. In his book 1001 Ways to Reward Employees, Bob Nelson illustrates this point with a story about Hewlett-Packard Company. An engineer at the company solved a problem that had plagued his team for weeks. Burning with enthusiasm, he burst into his manager's office and blurted out the solution. Thrilled by this idea, the manager offered the only reward he could find at the moment-a banana left over from his lunch. The incident started a trend, and the Golden Banana Award is now a coveted employee prize.

Though cash awards are an obvious choice for incentives, safety managers often use gifts as well: pens, key chains, personal stereos, compact disc players, televisions, fishing boats, recreational vehicles, and more. The price tag for some incentives runs into five figures. Others, such as a pat on the back and a compliment, cost nothing.

Management consultant Michael LeBoeuf lists ten basic categories of employee incentives. Besides money, these include:

  • Recognition
  • Time off
  • Stock ownership
  • Special assignments
  • Advancement
  • Increased autonomy
  • Training and education
  • Parties and other fun activities
  • Prizes
By asking the three "how questions" that follow, safety managers can narrow down this list and choose incentives that change employee behavior.

  1. How do we set goals for our incentives program?
    To say that safety incentives should relate directly to safety goals is a truism. Yet goals can be conceived in a variety of ways. Companies that succeed with incentive programs learn to state goals with care, knowing that different wordings of a goal can lead to different results.

    An obvious purpose of incentive programs is to raise safety performance. Given that overall goal, employees can receive incentives based on many different criteria: days without recordable accidents, months without lost-time injuries, decreases in workers compensation claims, and more. A successful program could get any of these results, each with a different impact on a company's bottom line.

    An obvious purpose of incentive programs is to raise safety performance. Given that overall goal, employees can receive incentives based on many different criteria: days without recordable accidents, months without lost-time injuries, decreases in workers compensation claims, and more. A successful program could get any of these results, each with a different impact on a company's bottom line.

    Heartland Foods, a Minnesota firm that processes turkeys, aimed for a big change. "We had a high level of people who were on workers compensation-employees out on a long-term basis," says Marie Huber, safety health and training director. "Now our numbers are way down." After 18 months with a safety incentives program, Heartland went from 785 lost-time injuries to 14. The program has more than paid for itself.

    Other companies slant their safety goals toward maintenance. This is true for W.R. Grace, a specialty chemical manufacturer in Atlanta. Vic Anapolle, plant manager, says that incentives help to sustain a record that is already impressive: "We went eleven years without a lost-time accident-a million-and-a-quarter employee hours. Our recordables are typically one or two a year for a population of about 70 people. We would hope that incentives programs would drive our numbers even lower."

    Raising safety awareness is one goal that fits in almost any case. An incentive program can work simply by forcing people to pay attention. For example, Bar-S Foods Company in Arizona cut its workers compensation costs in half between 1988 and 1993. During that period, the company's main strategy was to carefully record lost-time accidents and closely watch the numbers.

    In a similar way, Heartland employees use "close-call" forms to report situations on the plant floor that could lead to recordable accidents and injuries. With an incentive program in place, says Huber, "all of a sudden there is a reason to pay attention, because you're going to get something back for noticing."

  2. How can we get the most "bang" for our incentives buck?
    Managers commonly assume that the most potent incentive for employees is money. Yet an extra $25, 50, or $100 added to an employee check can quickly vanish, eaten up by taxes or mundane expenses.

    For this reason, many successful programs rely on low-cost gifts with high perceived value. According to Bill Sims, whose company designs and administers incentive programs, gifts that reinforce corporate identity can spark high interest. One of Sims' clients, a trucking firm that transports new cars, centered its program on a one-of-a-kind jacket imprinted with a special crest. To win the jacket, employees had to drive for three months without an accident. "On the last day of the contest, one driver backed his truck into a light pole and damaged the back window of a new car," Sims recalls. "He asked if he could buy that car. He didn't want to lose out and be the only guy at his terminal without a jacket."

    W.R. Grace's experience is similar. Anapolle notes that no employee is going to get rich through the company's incentive program. Instead, the program's goals are to promote safety awareness, generate safety suggestions, and routinely recognize employees for safe behavior.

    Buck Peavey, president of Peavey Performance Systems, makes such concerns a top priority in the incentive programs he creates. "We put the emphasis on the program itself and how that motivates people rather than on the merchandise awards," says Peavey. "The merchandise award certainly is the catalyst. But we put most of the emphasis on how the program works-how it builds teamwork and motivates people outside of the awards."

    A related issue is how to distribute incentives. Sims advises against contests that reward only a few people and reinforce the view that safety is a matter of chance or luck. Heartland Foods and W.R. Grace favor lottery-style programs that can potentially make everyone a winner. For example, employees who meet safety goals can receive scratch-off tickets called "Star Perks." If the star perk contains matching symbols, employees can redeem it immediately for a prize. If not, employees can still accumulate the Star Perks and redeem them later for gifts or other rewards.

  3. How can we sustain the incentives program?
    Creating a successful incentive program involves a willingness to experiment and learn by trial-and-error. One way to reduce the learning curve is find out what other companies are doing and consult the recent literature on incentives (see sidebar).

    Anapolle sees advantages in designing a cohesive program and then giving it time. "We took a lot of separate programs that were giving out premiums and various small cash awards. Then we added up what we were doing and said, let's roll these all into one program and see how that works for the next three or four years."

    Huber adds that consistency and follow-through are key. "You can't start an incentive program and then walk away and expect that it's going to run itself. You have to have safety meetings and give away incentives every month. Programs work when you implement employee suggestions and correct safety problems as they happen."

    A related suggestion from both Huber and Anapolle is to change the incentive program periodically so that it stays fresh. Even a relatively minor change-such as a new gift item-may be enough to sustain employee interest.

    Keep the Focus on Recognition and Safety
    Among the "how questions," perhaps the most important is how to keep the focus on fundamentals. After reviewing the relevant research, Nelson argues that incentive programs work when they tap into the reward that employees favor most-a manager's on-the-spot, public recognition of a job well done. He quotes Mary Kay Ash, founder of Mary Kay Cosmetics, on this point: "There are two things people want more than sex and money . . . recognition and praise."

    Huber, Anapolle, and others who've succeeded with incentives also report that these programs are simply the "icing on the cake"-one part of an overall program that emphasizes safety at every point from hiring to training and daily supervision. Asking "how questions" can restore the needed perspective and lift a safety manager's eyes to this larger horizon.

    Sources: Vic Anapolle, plant manager, W.R.Grace; Marie Huber, safety health and training director, Heartland Foods; Michael LeBoeuf, professor of management, University of New Orleans; Bob Nelson, management consultant and author; Buck Peavey, president, Peavey Performance Systems; Bill Sims, president, The Bill Sims Company.


    Sidebar Article:
    Guidelines for a Successful Incentives Program
    An Emerging Consensus

    When creating an incentive program, safety managers don't need to start from scratch. An rich and extensive literature on incentives-based directly on the experience of companies with successful programs-is now available. Despite the diversity in this literature, a few common themes dominate. Some examples follow.

    Decide What Behaviors to Reward -And Reward Them Consistently
    Michael LeBoeuf, management consultant, suggests that anybody planning how to reward employees begin with one question: What behaviors do we want to reward? The thesis of his book The Greatest Management Principle in the World is that "the things that get rewarded get done." Sounds simple enough. Yet day-to-day practices and unwritten codes of behavior might reward undesired behaviors. For example, an official goal might be company loyalty; yet the highest salaries may go to employees most recently hired, or to those who threaten to quit.

    Offer Meaningful Incentives
    Meaningful incentives are tied to specific behaviors or results. In addition, these incentives are timely and appropriate to the level of accomplishment. "An employee who completes a two-year project should be rewarded in a more substantial way than the one who simply does a favor for you," writes Bob Nelson in 1001 Ways to Reward Employees. And to boost the impact of an incentive, give it soon after the goal has been meet.

    Customize Incentives to Your Company
    Beware the "canned" incentive program. What works for one company might not work for others. Company cultures differ radically; that means successful incentives differ also. Before choosing incentives, consider employee demographics-factors such as age, rate of turnover, geographic location, and racial and ethnic diversity. Nelson suggests distributing a "reinforcer survey" to find out what kinds of rewards employees actually want. Incentive programs thrive on employee input.

    Keep It Simple
    Joan Klubnick, author of Rewarding and Recognizing Employees, notes that managers and supervisors often fail to give recognition for a simple reason: They don't know what to say. Klubnick offers a "recipe" for recognition-basic guidelines to use on a daily basis:

    • Thank the employee by name.
    • State specifically what the employee did to earn your recognition.
    • Explain how you felt about this behavior.
    • State how the behavior added value to the company.
    • Thank the person again by name.

    Sources:
    Bob Nelson, 1001 Ways to Reward Employees (New York: Workman, 1994). Joan P. Klubnick, Rewarding and Recognizing Employees: Ideas for Individuals, Teams, and Managers (Chicago: Irwin, 1995). Michael LeBoeuf, The Greatest Management Principle in the World (New York: Putnam's, 1985).

    Callouts:

    • Some incentives, such as a pat on the back and a compliment, cost nothing.
    • An incentive program can work simply by forcing people to pay attention.
    • Incentive programs are simply the "icing on the cake"-one part of an overall program that emphasizes safety at every point from hiring to training and daily supervision.

    Contact Information:
    Anapolle, plant manager, W.R.Grace, 5225 Phillip Lee Drive, Atlanta, GA 30336, 404-691-8646.
    Marie Huber, safety health and training director, Heartland Foods, PO Box 263 Marshall MN 56258, 507-532-5234.
    Bill Sims Jr., president, The Bill Sims Company, 102 Lake Vista, Chapin SC 29036, 800-690-1860.



    The Seven Secrets to a Successful Incentive Program

    By Bill Sims Jr.

    After helping Chatham County Government reduce their injuries significantly, we were asked to speak by PRIMA, the Public Risk Managers Association, to speak at their 1997 Annual Conference in Albuquerque, New Mexico.

    Here's a synopsis of what we covered, call for a free video if you'd like one...

    Title: Seven Secrets to a Successful Safety Incentive Program

    You've read about the miracle tool of the '90's risk manager--the incentive program. You've heard the success stories from factories and service businesses in your locale. Now you're ready to try it. Where do you start? How do you make sure that your first attempt doesn't fall flat?

    The right incentive program can significantly reduce the number and severity of your accidents. But like most tools, fantastic payoffs require skilled and committed use. Used incorrectly an incentive program wastes money and time and casts a pall over any future programs.

    Creating and running a successful safety incentive program requires learning seven simple -but critical- secrets:

    1. "If you don't know where you are going any road will get you there." Start your planning process by knowing where you are. Look at your accident record over the past two to three years. Is it getting better? Worse? Staying the same? How do your accident rates compare to your peers?

      What do your "average" Lost Time and Recordable accidents cost and how does this compare with your peers?

    2. Read a year's worth of accident reports. What do your employees REALLY need from you? Basic information on safe work practices? An incentive to work safely when no one's looking? Recognition for working safely? All three?

      Over time, successful incentive programs shift emphasis from education to performance and recognition of safe behavior. Knowing when to shift your focus is crucial. In the early stages (the first year or two) of a program you might reward employees who participate in your educational efforts: contributing to safety meetings, serving on a safety committee, helping with safety inspections. Once participation becomes the norm then you shift focus to reward safety achievement: working one month, one quarter, and one year safely.

    3. Picking the right incentive is one of the most difficult choices most managers make. Historically monetary awards have been the choice of most managers. That's changing. A recent survey conducted by Simmons Market Research Bureau and reported in Incentive Magazine found that cash had fallen from first to fourth place as the incentive used. Nearly twice as many companies use merchandise instead of cash.

      Managers are realizing that the cash amounts awarded in safety incentive programs do not motivate people to change their behavior. They spend the award on a tank of gas or the phone bill, and weeks later have forgotten where the money went. Awarding more money doesn't help -as the prize increases so does the likelihood of an employee hiding an injury so he doesn't lose his award.

      Smart executives build their programs around awards with "trophy" value -items that recognize the contribution for months or years. A well-designed incentive program will make certain that the incentive is never so great that an employee will risk hiding an injury.

    4. Reward frequently. Effective incentive programs reward participation and performance frequently: at least monthly.

      Rewarding individuals ensures that the people who work for you safely day-in day-out are recognized. Rewarding groups encourages positive peer pressure.

      Rewarding supervisors for their group's performance gets them fully behind the program-and their support is critical.

    5. Pick the right agency. If you are traveling to a new and exotic location chances are you'll buy your ticket from a travel agency - not directly from the airline. You'll want the agency's knowledge and expertise, which comes free when you buy from them. Successful incentive managers develop a similar relationship with an incentive agency. They look for someone with experience in safety incentive programs, committed to improving their accident record, not just selling products and services.

      Search for someone who can create an incentive program that supports your safety program. A well-designed program blends seamlessly with your current educational and promotional efforts. Look for an agency that will custom design it's system to you, providing training advertising aids that fit your work force.

    6. Plan for the "long haul." Maintaining enthusiasm months after you've started your program is challenging. A program is doomed to fail when managers treat it in an indifferent or casual way. Employees turn their backs on programs when managers forget to report January's performance until March or hand out April's awards in June.

      Meet the challenge by creating a list of tasks you'll need to do and when you'll need to do them. Delegate judiciously: have department managers present awards, have safety committee members track and report performance data. But follow-up, follow-up, follow-up!

    7. Measure your progress. Between the first six and nine months of a program take a critical look at how it's being accepted. Are employees talking about the program? Are they looking forward to their awards? Are you beginning to see a reduction in the number of accidents and their severity?

    Two or three years into an incentive program you'll want to think seriously about changes. Even the best program loses it's effectiveness over time. Is it time to change the emphasis from education to performance? From individual recognition to group? Here's where your agency can be a big help. A good agency will work with you to find the root causes of the accidents you're having and they'll present a number of plans that address those causes.

    Incentive programs are an increasingly valuable tool in the Risk Manager's tool kit. Once you know the secrets to successful use of this tool you can get those miraculous results too.




    How Do Employees Like the Star Perk Program?
    Some Comments From Satisfied Employees About The Star Perk Program...

    Ronald Horinek
    "I have been with the same company for 9 years and have seen many safety programs come and go. But, with Star Perks I have found something more special. I work second shift so a miss a lot of quality time with my wife. So what I have done is wait 'til my wife gets home to scratch off my Star Perks so we can have some fun, quality time together. Accidents have decreased in the plant....and the program helps bring families and employees together".

    Rick Winters
    "I like the Star Perk Program because it's an incentive to work safely. You can save up your Star Perks and get good, quality merchandise. Everyone in the company works together!"

    Gary Wieck
    "I think your program has helped a lot to bring production up and injuries down. It's always nice to receive something for doing a good job!"

    Duane Lund
    "What I like most about the Star Perk Program is the fact that it maintains awareness for all employees to work more safely and that everybody is a WINNER"!

    Wayne Trelka
    "What I like best about the Star Perk Program is I can earn Star Perks at a variety of levels. If someone else gets hurt and I'm not involved, I don't lose my Star Perks that I've accumulated".

    Dennis Jackson
    "The Star Perk Program has always impressed me because it helps all of us think about safety in our jobs. When I see someone who is not using proper safety methods, I no only remind them about safety, but it refreshes my memory and keeps me working safely. It also reminds us of how important it is to be safe off-the-job. I hope the program continues to reward us for doing what we all agree is important, and that is, to work safely every day!"

    Scott Miller
    "The Star Perk Program is an excellent program because it gives employees the incentive to work more cautiously. It is a superb way to keep accident rates down......"

    ...."I feel more secure knowing other employees feel the same way I do about safety. I know that they are looking out for my safety as well as their own...The Star Perk Program has helped us to do this."




    A Collection of Case Histories

    "To say that our Disney Trip winner was excited is an understatement! I'm not sure we've got him scraped off the ceiling."

    Case History: Dorsey Trailers

    In 1985, Dorsey Trailers had a problem. Dorsey was experiencing record turnover and absenteeism in its two plants. Like many other firms, Dorsey had a program rewarding one year of perfect attendance with cash. But employees simply weren't involved. Only five percent of Dorsey's employees recorded one year of perfect attendance. The Star Perk Program was used to recognize and encourage good safety & attendance habits. Employees earn Dorsey Star Perks for each month of perfect attendance & safety. In merely three years, absenteeism has dropped from 7 percent to just 1.7 percent, the lowest rate EVER! This program saved Dorsey tremendous sums through better productivity and quality, and increased efficiency.

    And in the four year period before the Star Perk Program was implemented, Dorsey Trailers' Elba, Alabama plant averaged 68 Lost Time Injuries per year. Once the Star Perk and Safety Is... Programs were instituted, Dorsey has experienced less than 10 lost time injuries each year.

    Poultry Processor Safety Manager

    "I feel it has helped to significantly improve our safety awareness in the plant: so much so that we had a record-setting year again last year with only six percent of our employees having a doctor-case accident -- A FORTY PERCENT DROP! I am looking forward to another great year."

    Case History: V.C.Summer Nuclear Station-South Carolina Electric & Gas, VC Summer Nuclear

    Station had a problem. The Summer Station was suffering from a shortage of employee suggestions for its ALARA Program. Employee ideas for reducing radiation exposure for given operations and jobs are a crucial part of maintaining low radiation exposure and reducing nuclear waste. From its 1,000 employees, the Summer Station in 1989 received just 3 suggestions for ALARA improvement. After implementing the Star Park Program they received over 117 ALARA Bright Idea Suggestions during only one year of running the Star Perk Program. Just one of these ideas saved them $30,000!




    Florida Power documented over $100,000 in savings using the Star Perks Program, as you can see here! Here's the article as it appeared in The Tampa Tribune...

    Florida Power Kicks Off Scratch Off Incentive Program
    By Dean Solov - Tampa Tribune Staff Writer

    CRYSTAL RIVER - Radiation is one of those things where less is better. Dental hygienists know it: they clear out of the room during X-rays. But working around radiation is so commonplace for nuclear plant workers that it's sometimes useful to remind them. So, Florida Power Corporation has embraced an incentive program aimed at doing just that. Company supervisors have been handing out prize winning, scratchoff Star Perks(tm) to workers who go the extra mile reducing their exposure and that of their fellow workers.

    "When you're working around radiation, you can't see it, you can't smell it, you can't taste it," said William L. Rossfield, Manager of Site Nuclear Services. Unlike a traditional lottery type program, every ALARA Star Perk is a winner, and radiation conscious employees can redeem them for prizes that include Florida Power T-shirts, Baseball caps, and even CD Players. "ALARA", an industry acronym, stands for "as low as reasonably acheivable."

    The ALARA Star Perks, handed out during the recent maintenance outage, serve as "little pats on the back for our people out there to be a little more ALARA conscious," Rossfield said. Among those who got the pat was Eddie Pike, a mechanical superintendent for Fluor Corp. who, with Fluor pipe fitters, made about 100 welds outside the radiation area rather than inside.

    "It could have been done inside, and he had wherewithal to go outside the radiation area," Rossfield said. Florida Power has fared well at staying within federal guidelines for radiation exposure, but Rossfield said the utility can always try to do better. He credits the program -- along with other ALARA efforts -- with helping cut exposure in half during the outage. In addition to safety, less exposure means more savings because of costs involved in protecting employees working in radiation areas. The program -- prizes and all -- cost about $5, 000, and has probably saved about $100,000.

    The ALARA Star Perks and prizes all come out of the Bill Sims Co., a Columbia, SC, company that specializes in programs to motivate employees. Bill Sims, Jr, President, at Bill Sims, said the Crystal River Nuclear Plant is one of dozens that have begun using the incentive program -- with its transferable "money" -- since 1990. The programs have saved those plants more than $2 million in two years, he said. The company develops tax-free incentive motivation programs for companies of all sizes, including Dupont, Milliken, and General Motors.

    "We develop each program custom for every client." says Sims, who goes on to add, "We start by looking at areas a company can save money through improved employee performance. Then we develop a custom solution that is easy to administer and really works." The Sims Company has documented over $500,000 in savings in Safety Improvement for Dorsey Trailers, and similar achievements in other areas like Bright Idea Suggestions, Absenteeism & Turnover Reduction, Scrap Reduction and Quality Improvement.

    One Minnesota poultry processor has had even more spectacular results--reducing injuries from 785 Lost Time Incidences per year to 14 per year. Sims comments, "They were very skeptical about incentive programs at first-- worried that incentives would cause injury hiding. Minor cuts, if not treated, become very serious injuries due to bacterial infections from turkey processing. So we took great care to develop rules that would not promote injury hiding. In fact, we received over 212 Safety Suggestions from employees who helped us find and correct unsafe conditions before injuries occurred."

    Another client of Sims is a large bakery firm with over 3500 employees in 10 locations. "One of the worst plants at this firm has 800 employee and has average 8 Lost Time Injuries per month for the last 10 years. This marks their third month in a row with ZERO Lost Time Injuries", says Sims, who adds, "the entire company has had a 50% reduction across the board in injuries." But Sims has a word of caution, too. "Don't make the mistake of thinking incentives are a substitute for a well managed total safety program. Incentives are part of the solution." Experts also suggest that you choose your incentive supplier carefully. What results can they show? What is their track record? How much do they learn about your business before recommending a solution? Every company is different; and what works one place often may not work as well at another. Building a successful incentive program is complex, and it requires lots more than just pretty pictures and flashy gift items. The company has a website at www.billsims.com.




    And The Wall Street Journal says...

    In the August 13, 1996 issue, a recent article entitled "Kentucky Plant Workers are Cranking Out Good Ideas", Robert Lee Rose, Staff Reporter, writes....

    "Jason Moncer has earned a nickname at a Johnson Controls Incorporated auto-parts factory in Georgetown, Kentucky.

    Co-workers call him Mr. Kaizen, a reference to the Japanese word for continuous improvement. In June alone, Mr. Moncer came up with 30 suggestions for improving the plant. "I go on sprees," says the 21-year-old, whose latest ideas involve better ways to organize the metal seat components in his work area before he and others insert them into the foam used to make car seats.

    In factories across the country, workers are suggesting ways to make their companies more efficient. But nowhere is the art practiced better than at Johnson Control's FoaMech factory, a key supplier to Toyota Motor Corporation's auto assembly plant in Georgetown. Out of 631 employee suggestions last year, the company found 221 good enough to implement. It says that each of the 230 workers provided at least one suggestion, either individually or as part of a team.

    By saving money for the company workers improve their collective chances of getting bonuses at the same time they work toward individual awards. Mr. Moncer, for example, is saving up "FoaMech Star Perks" to get a large screen TV.

    Now we're not promising that you'll be written up in The Wall Street Journal, but, who knows?




    And the January 1997 Safety & Health Magazine features two of our clients W.R. Grace & Heartland Foods in this article.
    Please call for a reprint of this!

    "How To Run an Effective Safety Incentive Program"

    "Safety & Health", January 1997, By Doug Toft

    Synopsis: Though successful incentive programs differ widely in content, their underlying processes are consistent. Companies that succeed with such programs ask questions that lead to clear goals, meaningful incentives, and longterm follow-through. These factors can be more crucial than the type of incentives used.

    Any manager who decides to start a safety incentive program faces a bewildering array of options. The goal seems clear enough-to promote safety on the job. Yet one company offers steak dinners as an incentive to employees who go for a quarter with no lost-time injuries. Another offers gift certificates to Wal-Mart, and a third offers straight cash awards. The question remains: What incentives will work for my company?

    This question is a powerful one-and not always the most important. People who are new to incentive programs often focus on the content of the program, e.g., what kinds of incentives to offer. Though this question is key, it's also crucial to ask the "how questions." Such questions reveal the processes that drive successful incentive programs. Though these programs differ widely in particulars, their underlying dynamics are surprisingly consistent.

    Incentives-Everything from Bananas to Boats

    Begin with a pause to consider how much the term incentive includes-almost any item that human beings value. In his book 1001 Ways to Reward Employees, Bob Nelson illustrates this point with a story about Hewlett- Packard Company. An engineer at the company solved a problem that had plagued his team for weeks. Burning with enthusiasm, he burst into his manager's office and blurted out the solution. Thrilled by this idea, the manager offered the only reward he could find at the moment-a banana left over from his lunch. The incident started a trend, and the Golden Banana Award is now a coveted employee prize.

    Though cash awards are an obvious choice for incentives, safety managers often use gifts as well: pens, key chains, personal stereos, compact disc players, televisions, fishing boats, recreational vehicles, and more. The price tag for some incentives runs into five figures. Others, such as a pat on the back and a compliment, cost nothing.

    Management consultant Michael LeBoeuf lists ten basic categories of employee incentives. Besides money, these include:

    • Recognition
    • Time off
    • Stock ownership
    • Special assignments
    • Advancement
    • Increased autonomy
    • Training and education
    • Parties and other fun activities
    • Prizes

    By asking the three "how questions" that follow, safety managers can narrow down this list and choose incentives that change employee behavior.

    1. How do we set goals for our incentives program?

      To say that safety incentives should relate directly to safety goals is a truism. Yet goals can be conceived in a variety of ways. Companies that succeed with incentive programs learn to state goals with care, knowing that different wordings of a goal can lead to different results.

      An obvious purpose of incentive programs is to raise safety performance. Given that overall goal, employees can receive incentives based on many different criteria: days without recordable accidents, months without lost-time injuries, decreases in workers compensation claims, and more. A successful program could get any of these results, each with a different impact on a company's bottom line.

      One basic choice is between change or maintenance. Some companies want to cut losses due to accidents and injuries, while others aim to maintain safety records that are already excellent.

      Heartland Foods, a Minnesota firm that processes turkeys, aimed for a big change. "We had a high level of people who were on workers compensation-employees out on a long-term basis," says Marie Huber, safety health and training director. "Now our numbers are way down." After 18 months with a safety incentives program, Heartland went from 785 lost-time injuries to 14. The program has more than paid for itself.

      Other companies slant their safety goals toward maintenance. This is true for W.R. Grace, a specialty chemical manufacturer in Atlanta. Vic Anapolle, plant manager, says that incentives help to sustain a record that is already impressive: "We went eleven years without a losttime accident-a million-and-a-quarter employee hours. Our recordables are typically one or two a year for a population of about 70 people. We would hope that incentives programs would drive our numbers even lower."

      Raising safety awareness is one goal that fits in almost any case. An incentive program can work simply by forcing people to pay attention. For example, Bar-S Foods Company in Arizona cut its workers compensation costs in half between 1988 and 1993. During that period, the company's main strategy was to carefully record lost-time accidents and closely watch the numbers.

      In a similar way, Heartland employees use "close-call" forms to report situations on the plant floor that could lead to recordable accidents and injuries. With an incentive program in place, says Huber, "all of a sudden there is a reason to pay attention, because you're going to get something back for noticing."

    2. How can we get the most "bang" for our incentives buck?

      Managers commonly assume that the most potent incentive for employees is money. Yet an extra $25, 50, or $100 added to an employee check can quickly vanish, eaten up by taxes or mundane expenses.

      For this reason, many successful programs rely on low-cost gifts with high perceived value. According to Bill Sims, whose company designs and administers incentive programs, gifts that reinforce corporate identity can spark high interest. One of Sims' clients, a trucking firm that transports new cars, centered its program on a one-of-akind jacket imprinted with a special crest. To win the jacket, employees had to drive for three months without an accident. "On the last day of the contest, one driver backed his truck into a light pole and damaged the back window of a new car," Sims recalls. "He asked if he could buy that car. He didn't want to lose out and be the only guy at his terminal without a jacket."

      W.R. Grace's experience is similar. Anapolle notes that no employee is going to get rich through the company's incentive program. Instead, the program's goals are to promote safety awareness, generate safety suggestions, and routinely recognize employees for safe behavior.

      Sims makes such concerns a top priority in the incentive programs he creates. "We put the emphasis on the program itself and how that motivates people rather than on the merchandise awards," says Sims. "The merchandise award certainly is the catalyst. But we put most of the emphasis on how the program works-how it builds teamwork and motivates people outside of the awards."

      A related issue is how to distribute incentives. Sims advises against contests that reward only a few people and reinforce the view that safety is a matter of chance or luck. Heartland Foods and W.R. Grace favor lottery-style programs that can potentially make everyone a winner. For example, employees who meet safety goals can receive scratch-off tickets called "Star Perks." If the Star Perk contains matching symbols, employees can redeem it immediately for a prize. If not, employees can still accumulate the Star Perks and redeem them later for gifts or other rewards.

    3. How can we sustain the incentives program?

      Creating a successful incentive program involves a willingness to experiment and learn by trial-and-error. One way to reduce the learning curve is find out what other companies are doing and consult the recent literature on incentives (see sidebar).

      Anapolle sees advantages in designing a cohesive program and then giving it time. "We took a lot of separate programs that were giving out premiums and various small cash awards. Then we added up what we were doing and said, let's roll these all into one program and see how that works for the next three or four years."

      Huber adds that consistency and follow-through are key. "You can't start an incentive program and then walk away and expect that it's going to run itself. You have to have safety meetings and give away incentives every month. Programs work when you implement employee suggestions and correct safety problems as they happen."

      A related suggestion from both Huber and Anapolle is to change the incentive program periodically so that it stays fresh. Even a relatively minor change-such as a new gift item-may be enough to sustain employee interest.

    Keep the Focus on Recognition and Safety

    Among the "how questions," perhaps the most important is how to keep the focus on fundamentals. After reviewing the relevant research, Nelson argues that incentive programs work when they tap into the reward that employees favor most-a manager's on-the-spot, public recognition of a job well done. He quotes Mary Kay Ash, founder of Mary Kay Cosmetics, on this point: "There are two things people want more than money . . . recognition and praise."

    Huber, Anapolle, and others who've succeeded with incentives also report that these programs are simply the "icing on the cake"-one part of an overall program that emphasizes safety at every point from hiring to training and daily supervision. Asking "how questions" can restore the needed perspective and lift a safety manager's eyes to this larger horizon.

    Sources: Vic Anapolle, plant manager, W.R.Grace; Marie Huber, safety health and training director, Heartland Foods; Michael LeBoeuf, professor of management, University of New Orleans; Bob Nelson, management consultant and author; Bill Sims, president, The Bill Sims Company.


    Guidelines for a Successful Incentives Program An Emerging Consensus

    When creating an incentive program, safety managers don't need to start from scratch. An rich and extensive literature on incentives-based directly on the experience of companies with successful programs-is now available. Despite the diversity in this literature, a few common themes dominate. Some examples follow.

    Decide what behaviors to reward-and reward them consistently

    Michael LeBoeuf, management consultant, suggests that anybody planning how to reward employees begin with one question: What behaviors do we want to reward? The thesis of his book The Greatest Management Principle in the World is that "the things that get rewarded get done."

    Sounds simple enough. Yet day-to-day practices and unwritten codes of behavior might reward undesired behaviors. For example, an official goal might be company loyalty; yet the highest salaries may go to employees most recently hired, or to those who threaten to quit.

    Offer meaningful incentives

    Meaningful incentives are tied to specific behaviors or results. In addition, these incentives are timely and appropriate to the level of accomplishment. "An employee who completes a two-year project should be rewarded in a more substantial way than the one who simply does a favor for you," writes Bob Nelson in 1001 Ways to Reward Employees. And to boost the impact of an incentive, give it soon after the goal has been meet.

    Customize incentives to your company

    Beware the "canned" incentive program. What works for one company might not work for others. Company cultures differ radically; that means successful incentives differ also. Before choosing incentives, consider employee demographics-factors such as age, rate of turnover, geographic location, and racial and ethnic diversity. Nelson suggests distributing a "reinforcer survey" to find out what kinds of rewards employees actually want. Incentive programs thrive on employee input.

    Keep it simple

    Joan Klubnick, author of Rewarding and Recognizing Employees, notes that managers and supervisors often fail to give recognition for a simple reason: They don't know what to say. Klubnick offers a "recipe" for recognitionbasic guidelines to use on a daily basis:

    • the employee by name.
    • State specifically what the employee did to earn your recognition.
    • Explain how you felt about this behavior.
    • State how the behavior added value to the company.
    • Thank the person again by name.

    Sources:
    Bob Nelson, 1001 Ways to Reward Employees (New York: Workman, 1994). Joan P. Klubnick, Rewarding and Recognizing Employees: Ideas for Individuals, Teams, and Managers (Chicago: Irwin, 1995). Michael LeBoeuf, The Greatest Management Principle in the World (New York: Putnam's, 1985).




    More Client Feedback...

    Watkins Motor Lines, Inc
    Harry Mahlen,
    6431 Center Park Dr.
    West Chester OH 45069,

    8/6/2003:

    1. What was the initial problem or area where you wanted to improve employee performance when you decided to use our recognition program?

      a) Employee participation. They were tired of getting company logos as awards.
      b) Increase revenue recovery. When our employees are proactive in sampling for aberrant shipping weight, it recovers revenues that would otherwise be lost.

    2. About what did you spend on the program?

      a) In 2002, our internal incentive program cost $6100. It consisted of our company product catalog -- various items with logos.
      b) In 2003 we estimate the incentive program developed by The Bill Sims Company will cost $11,000.

    3. What results have you achieved? (e.g. have injuries reduced? production gone up? etc.)

      a) Employee participation was our #1 goal and it has increased dramatically
      b) We estimate our revenue recovery using the new incentive program to be $9000 in less than a year.

    4. About what do you estimate the program saved you?

      a) The up front costs were higher than other incentive programs we have tried, but we expect that the end of year recovery results will be tremendous.
      b) Average revenue per correction has increased.
      c) Actual weight corrections per period have increased.
      d) Most importantly, our employees are excited with this new program.




      Dupont, Kinston, NC
      Louis L Barrow, Safety Manager
      8/20/2003

      1. What was the initial problem or area..............
        Our site was using many forms of recognition, (caps, gift certificates, cups, etc) for which there seem to be little value. I wanted to establish a recognition system that we could build on, whether it be for quality, safety, or just doing a good job, and if it rated

        a $1.00 value or
        a $50.00 value the recognitions could build on one another, with a nice or nicer gift, depending on your patience. In addition there is the added benefit of the Grand Prizes. (Cruise, extra points, vacations)

      2. About what did you spend on the program?
        We initially started out with ~$20,000 .

      3. What results.......
        Currently we have exceeded two years without a serious injury.

      4. How much money has the program saved?
        Based on the industry average, ~$60-70,000/year, Based on our performance for the two years prior to the program, ~$100,000




      Siemans VDO Automotive of Canada says...

      Lydia Gazidis
      8/25/2003

      1. What was the initial problem or area where you wanted to improve employee performance when you decided to use our recognition program (was it safety, morale, suggestions, or what?)
        [Lydia Gazidis] We needed to have a program to improve morale and increase thesuggestions for our employees.

      2. About what did you spend on the program?
        [Lydia Gazidis] We spent $30K usd on the Bill Sims program and another $10K on promotional merchandise

      3. What results have you achieved? (e.g. have injuries reduced? production gone up? etc.)
        [Lydia Gazidis] We have received a relatively high number of production related suggestions that are driving the costs down and improving our bottom line.

      4. How much money do you believe the program saved you?
        [Lydia Gazidis] todate I would say that we probably are in the tune of $500K annually.



      Bobby O'dell
      TGM Constructors
      2700 Marine St.
      Louisville KY 40212,

      August 25, 2003

      1. What was the initial problem or area...
        Reduce administrative work for our job sites and a larger choice of awards.

      2. About what did you spend on the program?
        Initially we have only committed to spend $30,000, but I would expect approximately $100,000 per year per job site after the initial evaluation period.

      3. What results...
        By selling the program hard at the beginning and getting our supervisors to buy into it we have gotten our construction project off to an excellent start. We currently have no loss time accidents and we are 137 days into the project.

      4. How much money do you believe the program saved you?
        It is too early to tell. We are going to look at cost per man hour at the end of the project and see how the overall safety award cost and work comp costs compare to our histories.

      8/18/2003: Project has gone 135 days w/o a recordable and Bobby figures this equates to about 70K man hours. He is pleased with the results, the impact that the activities have made on safety and the awareness that has developed. He has handed out three trips and the company will pick up the air fare for employees electing to use them rather than points.




      Ana Franklin of Herbalife
      8/27/2003

      1. What was the initial problem or area where you wanted to improve employee performance when you decided to use our recognition program?
        Improved communication between Supervisor and reps. Based on rep feedback. They look up to the Supervisors for feedback on development, motivating, coaching and mentoring and this was not happening prior to launching Star Perks.

      2. About what did you spend on the program?
        We spent over $30.000.

      3. What results have you achieved? (e.g. have injuries reduced? production gone up? morale increased? etc.)
        The reps enjoy setting goals and achieving them. Most of all, they enjoy selecting items from the Award of Excellence catalog.
      4. About what do you estimate the program saved you?
        The program reduced the turn over rate of employees.




      Sara R. Plona
      18 Aug 2003

      1. What was the initial problem or area where you wanted to improve...
        Initial area was to reduce recordable accidents and to reward employees who were accident free. Previous program didn't recognize employees separately.

      2. About what did you spend on the program?
        Budgeted for $50,000, actual cost for first year was $46,000

      3. What results have you achieved...
        Recordable accidents and doctor visits decreased by 40%

      4. About what do you estimate the program saved you?
        It is estimated that any injury costs the company an average of $22,000 in work comp costs. Estimated savings = $87,000




      Steve J Carroll
      18 Aug 2003

      1. What was the initial problem or area where you wanted to improve employee performance when you decided to use our recognition program (was it safety, morale, suggestions, or what?)
        [Steve J. Carroll] We wanted to motivate employees and reward involvement in our effort to become an OSHA VPP Stear site.

      2. About what did you spend on the program?
        [Steve J. Carroll] $30,000 over 2 years

      3. What results have you achieved? (e.g. have injuries reduced? production gone up? etc.)
        [Steve J. Carroll] 87 employees have volunteered and been rewarded for active participation

      4. How much money do you believe the program saved you?
        [Steve J. Carroll] The program has enabled us to gain a greater level of employee participation in working toward our goal. With employee buy-in, there is a greater desire by employees, because of their ownership, to achieve our safety goals, which includes zero incidents. We have been accident free since the program began 7 months ago.




      Hyder Construction
      Nicole Frank

      18 Aug 2003

      1. What was the initial problem or area where you wanted to improve...
        [Nicole Frank] Our initial reason for using this program was we spending too much time and money on other programs, and wanted something that was easy to use and maintain, and took the responsibility off of my shoulders. We were trying to streamline our safety program which the Superintendents have had nothing but complaints about our previous program.

      2. About what did you spend on the program?
        [Nicole Frank] Started with $5,000, now we have spent $20,000.

      3. What results have you achieved?...
        [Nicole Frank] Morale on jobsites has been improved, superintendents like the program, made my life so much easier in the sense that we have a program that was custom made for our specific needs, requires minimal time from me, and is easy for our superintendents to use.

      4. How much money do you believe the program saved you?
        [Nicole Frank] I would have to say that with time I have saved, ease of use for the Superintendents, probably $5,000/year. We only employ approximately 40 people, 10 of those that belong to the safety program, that is a HUGE savings!




      Leslie Kent of Axis Staffing, a Distribution Center says...

      Hi Bill,

      I would like to take this opportunity to let you know how the Bill Sims Program is working for us.

      We are a staffing agency that supplies associates for light industrial clients. In the years prior to working with you on a safety program for our associates, we averaged 40 workers' comp injuries per year. Then, disaster struck: in the year 2000, we experienced 74 WC injuries. Most of these were within two departments of one large client. Clearly, we now had both an opportunity and an urgent need to see what we could do to improve our safety record for this client.

      I began the search for a safety consultant on the internet, and one name kept "popping up" in my research: Bill Sims Company. Your program materials and explanations of successful safety programs, and the questions and concerns that can arise, were professional, thoughtful and obviously reflected experience. No other consultant appeared to have such a thoughtful, experienced approach to employee incentive programs.

      We have instituted a safety incentive program for our associates at the large client where most of our injuries were occurring. This location was the site of 52 injuries in 2000, 25 by June; yet this year, as of June 2001, we have had only 7 injuries. And, we expect to implement even more of the Bill Sims' incentive ideas in the months to come, to lower our injury rate even further.

      Without your expertise, I doubt we could have created a successful program. One of our goals was to avoid re-inventing the wheel in the area of safety incentives by making our own mistakes. This we have accomplished: your feedback and guidance as we considered different program ideas and options was invaluable. We WOULD have made several mistakes without your advice. I think this is one characteristic of the Bill Sims Company that sets it apart from other safety consultants: having more than a superficial or formulaic approach to the problem. You are able to customize your range of options to create an incentive program that fits the customer's specific needs.

      There is a genuine excitement among our associates for the program. We have incorporated instant prizes, Star Perks, and a Grand Prize into our program and all have been well received. There is real anticipation for the upcoming Grand Prize drawing and honestly, I am glad that we can reward our associates' efforts to work safely with such a nice prize. Again, I can say that you have helped us create a program that is well designed from "top to bottom."

      Your expertise has been invaluable to us, and your service has been flawless.

      Thanks Bill!




      Max Dover of Fontaine Specialized says...

      The following is some information and I hope it helps you to make a decision:

      1. How has The Bill Sims Co. helped your firm?
        We are currently utilizing the program to help reduce the increasingly high costs of Workers Compensation. We manufacture heavy duty, customized, flatbed trailers Which require handling extremely heavy steel parts and consequently, have had an enormous amount of back, knee and shoulder injuries, which are costly and terrible for morale. After the first year with Bill's program, we reduced the number of injuries by two thirds, from approximately 60 to 19. We are now in our second year with the program and after five months have not had a lost time injury.

      2. How long have you used their services?
        At this location we are in our second year. Previously, I was with a company called Gold Kist, Inc. and they have been with Bill for at least six years.

      3. How would you characterize the relationship between your firm and the Bill Sims Company?
        It is strange that you should ask about our relationship with the company, as I demand a personal relationship with all my vendors. Bill and his staff have responded to every need that I have and even for the personnel, provided a toll free number to assist with their problems when ordering items. I don't think you will find a more congenial and responsive company to Work with! I have tried others and as you can see have returned to Bill's program. If I can be of further assistance please contact me.

      Sincerely,
      Max A. Dover
      Human Resources Manager
      Fontaine Specialized
      5398 US Highway 11




      THARCO Inc says....

      Hi Bill,

      Well our San Lorenzo facility kicked off the program on Monday and Tuesday and feedback has been GREAT! We have lots of excited employees around here! Thanks for all of your help and support!

      One question that did come up was regarding the price list and the statement of "199 points for a carnival cruise"...is that correct or is it a type error? Our employees can't believe that they could get a cruise for only 199 points!




      Ray Montaigne says…

      Ray Montaigne
      Heery International, Inc.
      17900 International Blvd
      SeaTac, WA
      98188

      I'm only too glad to give a positive reference for Bill and his company. In response to your questions:

      1. Bill Sims helped me set up a customized awards program for our employees. We had an employee census of approximately 1100 employees. Everyone participated - from senior management to the yard help. We offered an incentive monthly, which provided continued safety awareness. We issued "Star Perks" to those who worked a month without a lost time or reportable injury, and doubled the award every three months of safe work. And, we raffled a color TV every month along with a telephone and radio head set. In a two year period, we reduced accidents and incidents to zero.

      2. We ran their program for over a two year period, when top management decided to go a different route due to financial downturns in our business.

      3. Bill's relationship was kin to that of a relative. He and his firm went out of their way to assist us, to correct miss-shipments, and in every other way he could. You will find Bill Sims to be very personable and sincere.

      I trust this answers your questions, if not, please feel free to call me. My work number is 206-988- 5507.

      Regards,
      Ray Montaigne




      Doug Burgner of Polk County says...

      I am honored that you would use me as a reference. I believe in the program. I just sent such a message to Adam Wilberding of asipaving.com.

      I am thinking of restructuring the program I have. I need some ideas to make the input for rewards more challenging. Currently I have rewards for:

      Best Division,Best Safety Committee
      Most Improved Division; Safety Close Call & Safety Sentinel; Are there other areas I should consider?

      Thanks,
      Doug Burgner




      John Marquart of ATG says...

      Hey Bill,

      I spoke with Dave Copeland, Safety/Project Engineer from a Detergent company; he had some question on how I liked the Star Perk program. We spent about 30 minutes together on the phone. I hope he likes it as much as ATG does.

      John




      Marie Jones of LSI says...

      Hi Richard,

      Sorry, for the delay in the reply. I can only tell you that they were the best company that I have ever worked with, as far as follow up, support, creativity to fit our company needs. They were available 7 days a week, did all changes we needed and helped every step of the program. It cut our Workman Comp claims down to next to nothing; improved employee morale and overall was the best money we ever invested. Bill Sims Jr. even made a trip out to help with the final set up. If you need anything else please feel free to call me.

      Marie Jones
      Administrator, LSI. Inc.




      Marie Huber of Heartland Foods says...

      Marie Huber
      9400 Mystic Lake Blvd
      Prior Lake, MN 55021

      1. How has The Bill Sims Co. helped your firm? In what areas?
        Substantial financial savings, in Workman Comp claims due to employee awareness in safety procedures. All company employees with improved morale.

      2. How long have you used their services?
        Four (4) years until company was sold to a larger corporation.

      3. How would you characterize the relationship between your firm and The Bill Sims Co.?
        Excellent, they were available to us seven days a week and Bill Sims Jr. came out to help with final set-up of the program. Best company support I have ever received. I would recommend their company to anyone looking to improve employee morale, safety or whatever issue you want to address within your own company.

      To a prospective client...

      I am currently working at Mystic Lake Hotel and Casino with approximately 4,500 full time employees. They do not have any type of program in place at this point and it is most likely, the reason for the turn over that we have.

      Employee retention is always hard in this type of environment, but they need to be encouraged to do the things that are just part of their everyday job. They need to have some type of positive reinforcement that says, we noticed that you did your job and you did it better than your peers. I have encouraged our firm to look into this type of program and since we are currently in transition, it will not be done until we have a new VP in place. I do believe it is the type of program that will work in your environment and encourage good positive behavior and happier employees.

      "The larger your company is the smaller your employees feel."

      They need to know that they are an important part of your business and that what they do, does make a difference. It does not matter if you're a restroom attendant, valet, beverage server, housekeeper, supervisor or area manager, without you there to do a good job it will always effect the guest and the bottom line. If you keep your employees safe and happy and let them have input into their own well being, you will have a more positive work environment no matter what line of business your in. I'm sure that you will find Bill Sims and his staff to be a very professional and ethical company to do business with. They will do everything to support you and help you get your program off the ground and running smoothly. You will not be disappointed in the follow-up you will receive.

      I have worked with Bill and his company since 1993 and have not been disappointed or had any referrals tell me that they have not been happy with his program or support team. Best of luck with your program you will see the positive effects it has on your employees and on your bottom line. The program more than paid for itself when we used it in our company with the decrease in accidents, comp claims and retention.

      Marie Huber
      Administrator




      Cathy Tubridy of Wheelabrator. (a division of Waste Management) says...

      Been busy with safety kickoff and observations. Things are going well and the employees LOVE this program thus far!!! (I am so proud I am bursting!) So, if you need any testimonials or help I am here for you! Janet McIntyre at out Pinellas plant is looking at the program and trying to justify budget increase; I am helping her. She has all my set-up rules and stuff; as her facility is pretty much like mine. Once these annual reports are out of the way for us sites will be looking; kind of watching to see how the program takes off, to see if they want to try it (we are leaders here and just go for it!)

      We are sending back a box of pack backs today and would like to swap for leather duffle bags (I gave mine away and they like it).

      Thanks again!
      Cathy




      Victor Garcia of Texas Mexican Railway says...

      By the End of February last year we had four reportable injuries, all were lost time injuries. This year we have had one reportable injury and zero lost time injuries. Looks like the program is working! Thanks Bill!

      Victor Garcia




      Jan Crawford of Georgia Pacific responds...

      1. How long have you used Bill Sims Company? I believe we are in the third consecutive contract with the Bill Sims Company.

      2. How has the program been received by your employees? The employees were very enthusiastic. I contribute this in part to the kickoff we held as suggested by Bill Sims and also, the intermittent "re-kick offs" that have been held.

      3. How satisfied are you/your employees with the prizes provided? As I'm sure you're aware, you can rarely please 100% of the people 100% of the time -- But in my15+ years with this company and many of the same employees, they were more pleased with this than with anything we had ever done.

      4. How satisfied are you/your employees with the timeliness of delivery of prizes? Are there many out-of-stocks or other delivery problems? We had only a couple of problems that I was made aware of... and Bill Sims got right on it. I think of the three "delivery" problems that were brought to me.... only one was due to any fault of Bill Sims's distributor - the other two were due to UPS or FedEx making errors. All were remedied within a reasonable amount of time. As for out-of-stocks, employees were sent cards back immediately so they could reorder. I always made a point to emphasize about ordering VERY early for occasions such as Christmas. The employees really liked the gifts coming straight to their homes (as did our receiving department.)

      5. How satisfied are you with the Bill Sims Company as a vendor? I was very satisfied. He always returned calls, responded to e-mails, and provided the time and flexibility we needed.

      6. Did you have someone look into the "tax-free" status of prizes for your company? Yes. I am a CPA myself. - As long as you stay within the guidelines you are given.

      7. Are the newsletters well done? Do employees read them? That is one aspect of the program we probably dropped the ball on. I (or my department) had always done the newsletters myself and just continued to do so. The newsletters looked good and when left on the break room tables, many employees took a look. Once again, that was something we could have utilized better.

      8. Did the program meet your objectives (to lower injuries, increase training participation, etc.)? We have achieved and maintained VPP Star Site Status. The program got good reviews in OSHA's review.... even though OSHA is not a big fan of "paying" people to be safe. Our main objectives were employee awareness and employee involvement. The BINGO program in particular helped us achieve that easily.

      9. Have you considered another vendor? Or, were you previously with another vendor? Yes, the safety committee over rewards and communication checked in to several companies. Immediately prior to selecting the Bill Sims Company, we were doing an in-house safety bonus calculation and various other incentive ideas.

      I know how busy you must be, and I really appreciate your time.

      Thanks again,
      Jerilyn Lanham Meckler, SPHR,Human Resource Manager




      An Interview by Bill Sims, Jr., with client Cathy Atkinson, of West Valley Nuclear Services.

      Result: $20,000 program results in over $2 million in savings in 2 years.

      What was the problem?

      The West Valley Demonstration Project is a unique environmental cleanup operation within the U.S. Department of Energy (DOE). It came into being through a Congressional Act in 1980. The Act requires that the DOE is responsible for solidifying high-level radioactive waste, disposing of waste created by the solidification, and decommissioning the facilities used in the process. The Project is conducted in cooperation with the New York State Energy Research and Development Authority. West Valley Nuclear Services Company (WVNS) manages and operates the WVDP.

      The Department of Energy mandates every environmental cleanup/restoration site have a Waste Minimization and Pollution Prevention Program (WMin/P2). This is an integral part of the effort to educate and encourage employees to minimize waste and prevent pollution to protect the environment both on a local and global scale. The WMinP2 Program is also responsible for providing reports both on a federal and state level regarding the amount of waste generated and minimized.

      In November 1999, the Secretary of the Department of Energy issued several goals at a national level for all Department of Energy sites, including the reduction all types of waste streams (radioactive, hazardous, industrial, and sanitary) through the 3R philosophy of reduce, reuse, and recycle, as well as conserving energy and buying recycled products.

      Although the Waste Min/P2 Program had been in place since 1994, participation in the program by all employees was not clearly visible nor seen as effective by the customer, even though many employees actually did contribute to minimizing waste streams in their daily work activities. Tracking all of the various initiatives and activities was difficult to document as many employees simply did the work but much of what was being done was not captured in the reports generated.

      At the same time the new DOE goals were issued (Fall of 1999), Cathy Atkinson was designated as the Lead Person and Chairperson for the WMin/P2 Program which consisted of about 40 employee volunteers. Ms. Atkinson met with her DOE counterpart to discuss new ways to meet the new goals. As Ms. Atkinson said "we wanted to find a way to track how we were meeting our goals, save money, recognize employees for the good things they were doing, encourage them to do more, and have documentation to prove that we were doing all of these things to meet our goals".

      Why a cash suggestion program didn’t work?
      A cash suggestion program was already in place at the WVDP; however, they were not aligned with specific goals for waste minimization. The rules and regulations for that program were cumbersome to many employees. The perception by many employees was that only people in certain job classifications could benefit from this program - not everyone could contribute and/or benefit from it.

      Why WVNS wanted to spend $20K even when business was bad for this program?
      Even though the Waste Minimization Program was mandated by the Department of Energy, having an incentive program to reach our goals was a new concept. The DOE had just recently mandated new goals that were rather aggressive. Both the company’s and program’s performance and budget was dependent on reaching these target goals so we knew we had to "get out of the box" to hit our target. Budget cuts loomed largely throughout the entire federal and state government (which allocated 100% our funding). We had to prove ourselves - that was our reality. We knew had to make a bold step forward to prove the company was being proactive in reaching these goals, which included cost avoidance and savings as well as our other goals to protect the environment. We chose a program that would allow us to align our goals, track our progress, make it easy for employees to use, and recognize employees for their efforts, and give us a return on investment.

      What were the results?
      According to Cathy Atkinson "In the 18 months that I was in responsible for this program, the company realized over $2.2M in cost avoidances and savings by using this program. There were 183 suggestions made, with 63 ideas actually implemented. As a result of utilizing this incentive program, we able to document what was being done to reach our goals and justify the value of the entire P2 Program. Our customer, the Department of Energy, gave us very high ratings for developing such an innovative and costeffective program. At the national level, the program was recognized in the DOE Pollution Prevention newsletter and was one of the highlighted achievements when WVNS applied for the Environmental Protection Agency’s (EPA) Performance Track Award."

      How did employees like it?
      Cathy says: "The employees loved this program! Because the goals and criteria were clearly stated and provided on every suggestion form, employees knew what was expected and could place their efforts in the areas they had direct knowledge about. They also knew up front what they could expect for their efforts; meaning, their level of participation would enable them to receive 'x' amount of Star Perks tickets and a chance to win a Grand Prize every quarter."

      Because the team that reviewed the suggestions on a regular basis (every 2 weeks), employees received feedback in a timely manner. This served to keep them motivated and working on implementation of the suggestion, if it met the specific criteria and was accepted into the system. Employees could pick out the gift of their choice and share the gift catalog with family members, if desired. Once the person received and submitted their tickets to The Bill Sims Company, their gifts were shipped directly the employee’s home. It became more personal to the employee and their family, as both saw the rewards for participating in this program. "I believe we were able to instill a stronger culture of the purpose and goals of the Waste Minimization and Pollution Prevention Program not only with our employees, but with their families as well by using this approach in recognizing and giving value for ideas submitted by the employees."

      Certainly, both WVNS and the Department of Energy will agree that this program has paid for itself many times over, not only in cost savings but in minimizing waste, saving energy, and promoting affirmative procurement - the goals set forth by the government at the inception of this program.

      Overall, The Bill Sims Company provided a win-win situation for the employees at the West Valley Demonstration Project, the contractor (WVNS), the customers (DOE and NYSERDA), and the taxpayers at large.




      Cindy Drushal of Kindred-Healthcare responds to an inquiry...

      Dear Kim,
      We have been with The Bill Sims Award of Excellence plan for a couple years now. We have been very satisfied with the customer service we get, plus the prize selection is fantastic. I'll try to explain the program we have.

      We are a large health care company with over 360 facilities which include Nursing homes and Hospitals all across the United States. We looked at our highest workers compensation claims and developed a Safety Awareness program based on our highest losses. (I.E. slips, trips, and falls; lifting injuries, etc) We worked with our graphics department and developed 6 posters that are mailed to every facility so they can change them every other month. Along with the posters is a Safety Gram, which is our news letter that has a series of questions that the employees must answer. This Safety Gram is mailed through our internal mailing system and goes to the facilities at the beginning of the month when they change the posters. After they answer the questions, they tear off the quiz portion at the bottom where the answers are and label their quiz with the facility name and contact phone number. The Safety Gram Quiz is used to distribute the actual incentive prizes as long as the facility had no lost time claims for that two month period.

      Each facility was given a select number of prizes based on the number of employees that they have the right to distribute any way they want. This means, if the facility has no lost time claims for the two month period, the administrator or CEO gets to decide how many prizes are awarded. Usually, they take the total number of prizes and divide by 6. (6 award periods for the year). The nice thing about this program is the facility has 6 changes every year to get those prizes awarded. Every facility last year got to distribute prizes. A couple of them had one massive party because they only met the terms to award prizes late in the year.

      It takes a lot of work on my field staff (5) to monitor the program and it has taken a lot of work on my part to get the program up and running. Now that this is the third year for it, most people know about it and how it works. Occasionally there is still a building out there that has no idea why they have prizes, but it has gotten much better. It also helps that all our facilities have the same e-mail system now. So we send out a notice to all the administrators and CEO's (and their AA) when we get all the data back from our workers comp reporting agencies to let them know if they can award prizes.

      Since I'm on the prizes let me tell you how much the facility staff like the prizes. If our reporting data is running late, my phone starts ringing!!! People love the quality and the quantity of Bills' prizes. If you give Bill your budget, tell him how many employees you have, he will put together a program for you that will reduce your injuries. The first year we started with Bill, we under estimated prizes. We actually assumed that 84% of our buildings would be successful our first year. Boy, did we get fooled. We had to go back to Bill, who had to express things from the Orient to get them made fast. We actually had 92% of our buildings succeed. We ran out of Water Bottles that were a prize to go to every employee. That was a struggle to keep straight for a while, but Bill has an excellent tracking system in place and by using UPS can always tell you where a package is. That works great when you can tell a facility who signed for it and when.

      We had only one problem the first year with some mailing issues. But, Bill pulled that back into his distribution system and it has been wonderful ever since. I know what is mailed out, when and to whom. I send a notice through e-mail and the facilities know to start looking for their stuff. Bills' team mails all the prizes, posters, etc. Oh, and the employees love the cruises and free trips. Everyone who has gone said they were wonderful. We use the cruises as an end of the year grand prize.

      My suggestion is to have Bill put together a proposal for you and see what he can do. Even at crisis management he has done a great job and found some way to get the stuff we needed. Hope this answers any questions you have. If you need something else, feel free to call me at the number below.

      Cindy Drushal
      Senior Administrative Assistant; Loss Prevention Department

      From: Kim Massengale, Corporate Tax Manager

      Cindy,
      Our company is considering implementing The Bill Sims Company Employee Award of Excellence program and would like to hear of your experience with this program at Kindred- Healthcare.




      Elena Stokes of Pacific Gas & Electric responds to an inquiry...

      Dear Kim,
      I worked for Pacific Gas and Electric for 20 years and just recently retired. The last 10 years I was the Administrator for the Employee Recognition Program. We tried various methods (gadgets, cups, keychains;etc) all were worthless gifts, didn't REWARD good behaviors and the methods we tried were very labor intensive.

      In 1992 we did a study that took one year to complete. We benchmarked companies with existing Reward Programs. In the end we decided to go with The Bill Sims Co. who was already known by us but we had only been using them on a small scale for another department. Their reputation and willingness to work with us had proven to be exactly what we were looking for.

      We expanded the Program with help from Bill to include the entire Diablo Canyon Nuclear Plant also our Humboldt Power Plant in Eureka, and our main office in San Francisco.

      By using the Bill Sims Co. we were able forget the problems associated with the gift buying and concentrate on promoting those good behaviors for our employees, concentrating on our goals of Safety and Generation for our company.

      We found the Bill Sims Company to be most honest and very professional. You will find they are very easy to work with and will work with you to accommodate your needs for your company. I personally know the Sims family and would recommend their services. I am now retired from PG&E but welcome any questions you might have on how we put together a great employee recognition program.

      Elena Stokes
      Retired - Administrator Employee Recognition Program
      Pacific Gas and Electric Company 805-481-9513

      From: Kim Massengale
      Sent: Thursday, June 12, 2003 5:26 AM

      Elena,
      Our company is considering implementing The Bill Sims Company Employee Award of Excellence program and would like here of your experience with this program at Pacific Gas & Electric.




      Bob Nelson, Best Selling Author, Refers to the Bill Sims Company in his new Book

      I feel the best recognition efforts start small and build. Take, for example, the "Reward of Excellence" program currently used at Herbalife, the health and nutrition company based in Los Angeles. The Distributor Services department wanted to increase the amount of recognition being used in the department and to find a way for employees to be able to better recognize one another as well. They looked at various incentive suppliers, called references and finally selected The Bill Sims Company to help launch a departmental recognition program.

      The program used two-part "WOW!" cards to provide employees the ability to jot a thank you note or praising to any other employee for service, teamwork, etc. One part went to the employee and the second part went into a recognition box that was reviewed monthly by six volunteer members of a recognition committee (two from each department).

      The committee selected the most stellar example from the "WOW!" cards each month, which was then posted on a "WOW!" bulletin board. The person selected is given extra points toward merchandise purchases as well as extra tickets for a cruise drawing held at the end of six months. All honorees are also automatically submitted to the company's "All Star" program for additional recognition and visibility.

      To give the program the best chances for success, they started it with a trial period of three months over which time they collected feedback and suggestions from employees to make the program best fit their needs and preferences. For example, when they found out that employees balked at having to pay freight and handling for merchandise they had selected, those amounts were built into the awards, which employees preferred better even though slightly more points were then required to earn the same merchandise.

      Besides obtaining the original goal of increased recognition, the company found other benefits emerged as well. Ana Franklin, senior manager of the Order Support Department identified three such benefits: 1) The program has helped employees set more specific goals - and has provided systematic tracking and acknowledgment of results against those goals; 2) the program costs less money than they had previously been spending, although it has had a longer term, more motivational impact on employees, replacing what had previously been a "hit-and-miss" approach to recognition (occasional distribution of gas cards and gift certificates by managers); and 3) employees can now include their families in selecting merchandise they are working to earn, providing an added motivational incentive for everyone involved!

      Once the program was successful, it was easy to leverage it to other departments in the organization, several of which asked to be included. The word-of-mouth excitement of participants is much more persuasive than any number of corporate policies, announcements or Human Resources initiatives that might seem forced on employees.

      Bob Nelson

      Bob Nelson, Ph.D., is president of Nelson Motivation Inc. in San Diego; a best-selling author of 1001 Ways to Reward Employees, The 1001 Rewards & Recognition Fieldbook and Managing For Dummies; and a frequent presenter to management groups, conferences and associations. For more information visit www.nelson-motivation.com

      Know someone who might like to receive Bob's FREE Tip of the Week? Send the email addresses of three associates to and receive Bob's Top Ten Ways to Motivate Employees mouse pad for FREE (please include your shipping address). All new subscribers also receive a FREE screensaver of employee recognition reminders, tips and techniques.

      For more information on the Bill Sims Company, call Bill Sims at 800 690 1860 or visit www.billsims.com


Whether you're considering a recognition for the first time or you need to revamp an exisiting program--we can help take your process to the next level. Since each solution is custom built for you, the easiest way to start is a free 10 minute needs assessment..

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