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A Most Valuable Proposition
By Art C. Bouzounis

The promotional products business has witnessed much debate over whether safety incentive programs are successful—or even necessary—in the workplace. Opponents claim that rewarding or motivating employees to achieve positive safety records actually encourages covering up injuries and falsifying records.

However, opponents should understand that incentive programs are not a replacement for proper safety regulations and procedures. They simply compliment the company’s policies and promote solid, well-maintained safety methods. Using promotional incentives as a risk management tool can help companies reduce accidents and injuries, improve company productivity and boost employee morale.

Any program that discourages employees from reporting accidents clearly misses the mark. Used correctly, safety incentives programs do not lead to under-reporting. Safety incentives reward safe behavior. More importantly, a program cannot take the place of proper record keeping, quality management, and proper risk management guidelines.

Reducing Accidents and Injuries
Many companies see the value of investing time and money on safety recognition programs. According to the Promotional Products Association International (PPAI), over three percent of the $18 billion spent on promotional products in 2005 was purchased for safety education incentives. This means that companies worldwide spent approximately $540 million to promote or reward safety in the workplace using some type of promotional product.

It is important to realize that there are no one-size-fits-all solutions for incentive programs of any type. Safety managers or company management should evaluate the company landscape and employee preferences to determine the type of program to administer. When integrating a new program, companies should conduct a trial period to establish the most effective type of program. In some companies, individual recognition programs perform better than group reward programs, but the trial period will bear this fact out.

One benefit of an individual program is that can empower individual employees to set examples for others on following safe procedures. Employees are able to recognize themselves as an important part of the company, and are self-driven to reap the rewards of safe practices. On the other hand, group programs can be effective in keeping individuals from breaking rules or performing unsafe practices for fear of spoiling award opportunities for the rest of the team.

Improve Company Costs
The potential losses from accidents and injuries are many, and while the issues are obvious, it is important to look at each more closely.

First, accidents and injuries on job sites cost employers an untold amount of lost productivity, in addition to costly workers’ compensation claims, damaged equipment and lawsuits. According the U.S. Department of Labor’s Bureau of Labor Statistics, there were over 4 million cases of nonfatal injuries and illness in the private sector reported in 2004. Of those cases, almost 1.3 million resulted in days away from work. Consider that those lost days quickly add up in to lost output, lag time due to training replacements if applicable, and the expenses of outsourcing or bringing on a temporary replacement during the employee’s absence.

Companies also pay excessive amounts in workers’ compensation fees to cover injuries and illnesses. When accidents occur, premiums significantly increase. Safety incentive programs, when used properly with a strong risk management program, can limit the amount of premium increases.

The costs of damaged equipment are another important consideration. Equipment damaged during employee accidents can be a leading source of lost productivity. Equipment is an important investment, so when the equipment is out of commission, the investment is performing poorly.

Lawsuits resulting from accidents and injuries at the workplace are another costly threat. With a safety incentives program in place, companies reduce the risks of both accidents and legal proceedings.

Boosting Morale Boosts Motivation
Studies have shown that employees need an occasional pat on the back. After all, they are the foundation of a company. It is easy to surmise that employees have a higher degree of loyalty to companies who reward them for performing hard work above their expected paycheck.

When employees work together towards a common goal—for example, an excellent safety record—they experience a degree of camaraderie and become motivated to be productive and cautious regarding safety and risk management practices.

High morale usually translates into fewer fraudulent claims of injuries or illness. Employees who have a high morale tend to have more respect for their employer, and are less likely to place a false claim.

Incentive Products In Action
The smallest of companies can benefit from safety incentives programs without having to spend too much of their bottom line implementing a program for employees and purchasing rewards.

The promotional products industry has made program kits available, which are designed to be easily implemented into a company’s safety training procedures. For example, Action Safety Training offers a product to train and reward safe working practices. The company’s “Action Safety Complete Program” is written by certified safety professionals, and delivers safety solutions that address the needs of all industries. The program includes 12 safety awareness topics, and is equipped with everything that is needed to hold effective monthly safety meetings with employees.

While packaged solutions are often very effective, it is important to remember there is no cookie-cutter program that is effective for every company. A promotional products expert in safety incentives programs can assist companies in preparing a plan for what types of products to use, and how often it should be implemented.

Incentive programs do not replace proper safety regulations and company procedures. They reward employees who follow them. They should be used to compliment and promote effective safety methods.

Art C. Bouzounis is director of marketing and business development for Artina Promotional Products based in Columbus, Ohio. Founded in 1967, Artina is one of the premier distributors of promotional products internationally. A family-owned business, Artina is now in its second generation and has been recognized as Family Business of the Year by the Family Business Center of Central Ohio. The company specializes in ad specialties, awards, corporate/business gifts, apparel, recognition programs, safety programs, employee incentives, trade show giveaways, premiums, fulfillment programs and online stores. More information can be found at Artina.com.

Achieving the American Dream
reprinted with permission from Promotional Products Business Magazine
September 2005

THE STORY BEGINS 38 YEARS AGO when Chris Bouzounis, a printer from Athens, Greece, traveled to the United States. Although the purpose of his journey was to give his sister away at her wedding, Bouzounis wanted something more. So he began to dream. What if he could start a business in America? Would it be as successful as the printing business he had started back in his native country? Click here to view the whole story as a PDF file (2 MB)

Artina Promotional Products’ President Finalist
for 2004 Small Business Person of the Year Award