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ColumnsLeading SafetyWorkplace Training Strategies

Leading Safety

Traditional Safety Incentive Programs and How They Work

A rundown of typical corporate safety improvement tactics

By Peter G. Furst
Construction supervisor giving a thumbs-up while wearing a high-visibility safety vest.
Photo: Jacob Wackerhausen / iStock / Getty Images Plus
July 16, 2026

Every business potentially faces the possibility of accidental losses from worker injuries. Legally they are also required to carry workers compensation insurance to take care of any employee injured while performing their work. The insurance company has loss control personnel who may be able to provide some guidance in loss control. Most organizations have a person or department overseeing their safety. Organizations are required to comply with the OSHA safety standards, which require training as a means to educate workers in safe work practices, along with other responsibilities.

The Bureau of Labor Statistics requires organizations to collect accident and injury data and submit this annually to them. This provides industrywide data which could guide the organization loss interventions focus. This information is then used by organizational safety department to develop and deploy interventions in order to reduce such accidents going forward which usually results in some form of training, or targeted site inspections. A search of the literature may put forward exposure avoidance, loss prevention, loss reduction, segregation, and contractual transfer as possible means of addressing workforce accident and losses.

Traditional Improvement Interventions

Traditionally some of the typical improvement initiatives resulted from a number of different interventions, such as the implementation of more effective training, targeted jobsite inspections, coaching and counseling, better communication, hazard reporting, improved work methods, more housekeeping, utilization of safer technologies, as well as more through accident investigations. Another possible solution might involve letting go of employees who may be considered as being accident prone. Another eventuality is that any potential solution implemented has short-term improvement and accidents and losses seem to reappear.

When sufficient improvement is not achieved, some organizations reverted to disciplinary actions, while others explored utilization of incentives to garner improvement. A great deal of debate surrounds the use of disciplinary action or incentives programs to improve and then maintain not just safety but also other construction operational performance. Incentive programs seem to outweigh disciplinary actions as a preferred or more acceptable means or method to garner improvement. The safety manager may suggest an Incentive and penalty (I/P) programs which are commonly used in construction to improve employees' safety outcomes.

When sufficient improvement is not achieved, some organizations reverted to disciplinary actions, while others explored utilization of incentives to garner improvement.

To be effective, any improvement initiative requires appropriate actionable data in order to be able to make informed and critical decisions. By analyzing the data, organizations create information necessary to track and improve performance. It also pinpoints inefficiencies and validates the effectiveness of interventions. This ultimately leads to better outcomes. It is also essential to remember that data alone isn't always sufficient. Management experience and expertise as well as possibly consultants should also be considered, especially when dealing with complex human behavior issues.

Types of Safety Incentive Programs

Typically, a safety incentive program is a reward-based initiative utilized to encourage employees to meet or better yet, exceed safety standards in the workplace. Safety incentive programs promote existing safety protocols and highlight effective safety processes and practices performed by employees. These programs reward employees with both tangible and intangible prizes once team members meet specified safety goals. Safety incentive programs can last for a certain amount of time or work as ongoing motivational tools to promote caution and responsibility on the job.

Primarily, there are two types of overall safety management programs: those that are injury based and those that are behavior based.

Recognition or rewards may be given to individuals or crews. The overall focus on accidents, injuries and losses sets a negative tone to the safety management processes while the behavioral approach increases interaction, provides the opportunity for interaction, understanding, and learning.

Injury Based Programs

Recognition or rewards are given for avoiding or lowering the number of accidents and/or injuries during a set time period. A shortcoming of this criteria is that it may tempt workers to not report injuries, which may potentially cause the injury to become more serious. Another shortcoming is the system does not consider the effort that goes into avoiding the accident or the seriousness of the injury. This program is dependent on recordkeeping and does not encourage coaching and counseling through interaction between the safety practitioner and the workforce.

Behavior-Based Programs

This program observes worker safe behavior as the criteria for awarding the incentive. This may include attendance at safety training sessions, participation in safety meetings, offering task safety improvement suggestions, performing work in a safe manner, involvement, etc. Behavior-based observation can provide information about the state and usage of equipment, involvement of the workers, site conditions; all of which can affect the state of the work climate. As construction work progresses the physical conditions constantly change, which in turn changes the potential risk of accidents. This then drives the necessary change in the workforce’s behavior.

For either incentive program to function well the workforce has to be involved as well as motivated. Positive reinforcement, feedback, recognition and reward are considered the four major drivers of motivation. Positive reinforcement is most effective if it is given immediately following the desired behavior. To increase the chances that this occurs, it should be worksite practice for peers, who are in the best position, to deliver the timely reinforcement message. This would probably be greatly reinforced if the supervisor recognized it as well.

Incentive programs promote safe practices and encourage safe behavior. Smaller incentives handed out more often tend to be more effective that one big one handed out once a year. Recognition of a person in front of peers tends to be more effective than one on one. Incentives and rewards should be specified, understood, and more importantly should be perceived as achievable. It is also believed that it is more desirable to reward many participants rather than just one individual, making safety a group endeavor.

Incentive Programs’ Benefits

A review of the literature involving the benefits of incentive programs on construction projects found a rather large number of affirmations of reducing accidents as well as improving the safety culture. These programs encourage adherence to safety protocols and reward safe behaviors.

They also encourage employee participation and create a stronger, safer work environment.

Incentive Programs Shortcomings

Incentive programs in construction can result in unanticipated negative outcomes. They can potentially lead to underreporting of accidents, and to some extent unethical behavior. These programs can also create difficulty managing safe operations. They may possibly lead to disputes and conflicts. Moreover, they may not always align with expected business goals or be suitable for all types of construction projects.

A great deal of research on the effectiveness of incentives in the safety area has been conducted. This highlighted the fact that offering incentives in construction safety can present several significant problems. Causing underreporting of incidents, a focus on rewards over genuine safety behavior, and the potential for short-term change rather than a long-term commitment to safety.

Conclusion

The answer to “do rewards work?”, depends on a lot of factors! This includes the safety culture, work climate, leadership, management, policies, practices, procedures, values, vision, and on and on. Research suggests that, by and large, rewards succeed at securing one thing only: temporary or short-term compliance. When it comes to producing lasting change in attitudes and behavior, rewards, are strikingly ineffective. They do not create an enduring commitment to value, beliefs, or action, but rather, incentives merely — and temporarily — change what we do.

KEYWORDS: leadership OSHA standards

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Peter G. Furst, MBA, Registered Architect, CSP, ARM, REA, CRIS, CSI, is a consultant, author, motivational speaker, and university lecturer at UC Berkeley. He is the president of The Furst Group which is an Organizational, Operational & Human Performance Consultancy. He has over 20 years of experience consulting with a variety of firms, including architects, engineers, construction, service, retail, manufacturing and insurance organizations. He has guided organizational systems integration, aligning business and operational goals, enhanced management’s leadership and operational execution, utilizing Six Sigma, lean and balanced scorecard metrics optimizing human and business performance and reliability. Send questions and comments to peter.furst@gmail.com

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