A driving force behind improving safety in organizations is utilizing a safety incentive program.

A wide variety of organizations see a safer work environment as a key to their long-term success, from manufacturing companies and pharmaceutical labs to construction organizations and trucking firms.

In fact, safety incentives reduced insurance claims by an incredible 65 percent at trucking firms that ran safety incentive programs, according to a study of truck drivers by the Federal Motor Carrier Safety Administration.

In addition to ensuring a safer work environment, this type of program shows evidence of securing increased levels of employee loyalty.

Why?

Many employees would prefer to stay in their current position than bolt for a new company and have to start “collecting points” from the beginning.

The Key to Building a Successful Safety Program

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The answer to that question is simple.

The fixed cost of incentive programs, unlike other sales and marketing strategies, is 20 to 30 percent of the program.

The remaining 70 to 80 percent is paid only when the program’s goals are reached, according to the Incentive Research Foundation.

What are the fixed costs of an incentive marketing program?

Set-up and ongoing communication are the primary fixed costs of any incentive program.

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Most companies understand that incentive programs lead to happier and more satisfied employees as well as customers.

What most don’t realize is the incredible financial benefits and how these programs are more effective than traditional sales and marketing strategies.

The International Performance Center recently outlined five reasons that highlight the benefits of incentive programs:

1.  Low fixed costs and variable costs are driven by performance

2.  Ability to effectively target audiences

3.  Relative ease of measurement

4.  Flexibility

5.  Potential for both short-term and long-term results