HR: Lower insurance costs with employee incentive programs
October 2011, Focus: Human Resources
Lower Insurance Costs with Employee Incentive Programs
Wed, Sep 28, 2011
Done right, employee safety incentive programs can lower net insurance costs by keeping workers healthier through reductions in accidents and lost time injuries. Done wrong, such incentive programs can create peer pressure that discourages employees from reporting injuries.
In a review of OSHA mandatory injury reports from 2005-07, the Government Accountability Office (GAO) discovered widespread underreporting of workplace accidents. According to the report, 75 percent of health practitioners surveyed believe workers sometimes avoided reporting work-related injuries and illnesses because they didn’t want to cause themselves or their co-workers to miss out on prizes. Conversely, 72 percent believe safety incentive programs motivate employees to work safer.