Customized Employee Incentive ProgramsSuccessIn 2000, Safety Reward customized its program for Corner Brook Pulp & Paper, a division of Kruger Inc. The year prior to the introduction of Safety Reward into their Woodlands Division, Corner Brook Pulp & Paper had experienced 25 lost-time incidents due to workplace injury out of a total of 650 employees and were paying above average rates to the Workplace Health, Safety and Compensation Commission (WHSCC). Since the Program's inception, we have seen a significant decrease in this number, to an all-time low in 2002 of only one lost-time incident over the course of 750,000 hours worked. This low has been maintained in 2003 & 2004 by having only 3 and 4 incidents each year respectively. There are several contributing factors to this slight increase (i.e. significant rise in hours worked), but nevertheless, the Safety Reward Program has resulted in a dramatic decrease of 31% in the number of lost-time incidents occurring in the Woodlands Division.1 A decrease in lost-time incidents factors directly into a company's profitability in several areas. One such area is the figure paid to the WHSCC based on the company's safety risk rating. For the Corner Brook Pulp & Paper Woodlands Division, the Safety Reward Program has been exceedingly beneficial by decreasing their WHSCC rates by 35% over the course of its first 5 years.2 The success of the Safety Reward Program has dropped their WHSCC rates to well below average for their industry. Whether a company is large or small, one lost-time incident can have a major impact on that company's finances. In an article in Safety Compliance Insider, safety consultant Richard Hawk explains that "a modest compensation claim of $4,000 would require a company with a profit margin of 5 percent to sell $208,000 worth of product . . . A nasty $100,000 claim would take $4.2 million in sales to make up!" 3 The Safety Reward Program is completely customized to meet the safety and budgetary needs of each individual client. To help you figure out if Safety Reward would be beneficial to your company, we have attached (Acrobat file - 1.04MB) the above mentioned article which contains a worksheet to determine the total costs of accidents on profits and sales. If you feel Safety Reward could benefit your company, please contact our office and we will build a proposal for your company. 1All statistics pertaining to Corner Brook Pulp & Paper were provided by George Crocker, Safety Co-coordinator for Corner Brook Pulp & Paper Woodlands Division, 2005. 2As above. 3Richard Hawk Inc., "Showing the True Financial Cost of Injuries & Illnesses," Safety Compliance Insider. Bongarde: Penticton, BC. Volume 1 Issue 4. April 2005. www.canadacompliance.com. |
Safety Reward Program, 285 Main Street, Bishop's Falls, NL Canada A0H 1C0 |