How Safety Incentive Programs Can Lower Your Workers’ Comp Costs

Pedro Ponce | Apr 20, 2022 | minute read

How Safety Incentive Programs Can Lower Your Workers’ Comp CostsWhy is a safety incentive program important to your business? As the owner or manager of a small firm your employees will reflect your attitude toward occupational safety and health. If you are not concerned about preventing employee injury and illness, your employees are unlikely to be concerned about their safety and health.

As a result, it is critical that you show your personal concern for employee safety and health. Only you can demonstrate the value of your policy by your conduct.

What Is a Safety Incentive Program?

A safety incentive program is an incentive-based strategy that encourages employees to meet and exceed workplace safety standards. Employees’ safety processes are highlighted in safety incentive programs, which support existing safety protocols.

Safety Programs Save Money

According to the Occupational Safety and Health Administration (OSHA), businesses spend about $1 billion every week on costs linked with workplace injuries and illnesses, and those costs are paid out of profits.

Workplaces that implement safety and health management systems, on the other hand, can cut their injury and illness expenses by 25 - 45%.

What OSHA Thinks

According to OSHA, employers must not implement incentive schemes in such a way that penalizes workers for reporting work-related injuries or illnesses. Instead, OSHA advises incentive programs that compensate employees for participating in safety program activities, assessments, completing employee training, safety walkthroughs, and hazard identification.

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Process-based Incentives Can Be Effective

Rather than paying staff for the number of days without an incident, consider recognizing positive, initiative-taking behavior such as attending safety meetings, wearing PPE, passing a safety training quiz, or recommending methods to make the workplace safer.

Upper Management Must Be on Board and Involved

Employees will not participate in a safety incentive program if management does not fully support and appreciate it. Workers must believe that the program is fair, that it is managed in a reasonable manner, and that they have a chance to win the prize.

Examples Of Rewards

A pizza party, unique tee-shirts with the company logo, or an annual appreciation dinner when employees from all levels socialize and top management distribute prizes to staff who have followed safe work practices are all examples of incentives. Others include:

  • Advancement
  • Increased independence
  • Education and training
  • Unique activities
  • Prizes
  • Time off

How Safety Incentive Programs Can Lower Your Workers Comp Costs

Do Not Over Complicate the Process

Make sure your incentive program is not too confusing that your employees do not know what they need to do to obtain the prize. A safety incentive program that is overly complicated may backfire by reducing staff morale.

Every employer is responsible for ensuring a safe working environment. The good news is that measures to make your workplace safer, such as safety incentive programs, can help you boost your profits.


Workers must comprehend why the program is being implemented, the regulations, how it operates, and how progress is tracked. They must be reminded about the incentive program, the reasons for it, and how they are doing on a regular basis. Through active participation and coaching, they need to witness management involvement and support.

Remember, the primary goal of these programs is to prevent workplace injuries, worker’s compensation claims, and product loss. Every organization may quickly and affordably develop safety incentive programs. These programs require some additional effort, but the advantages are well worth it.

Because a hazardous workplace is costly, a program designed to make workplaces safer will improve the bottom line.

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Leap | Carpenter | Kemps Insurance Agency Can Help 

Leap l Carpenter l Kemps Insurance agents and consultants have helped many businesses establish, plan, and implement successful risk management and insurance strategies. Contact us today for more information on the advantages of risk management consulting services or to schedule a consultation with a professional expert.

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About The Author

Pedro Ponce is a Commercial Insurance & Risk Advisor who has been representing his customers for over ten years. He holds a Certified Insurance Counselor designation and is currently working on becoming a Certified Risk Manager.

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