Improving employee safety through incentives

Rim Hospitality is a hotel, resort and boutique property management company offering full-service property management for national brands such as Sheraton, Hilton, Courtyard by Marriott and Holiday Inn. Rim Hospitality’s services include Rim Office2 hotel property revenue management software, fully integrated real-time payroll, hotel revenue data collection and reporting, employee staffing and training programs.

With rising workers compensation expenses, Rim Hospitality needed to find a cost-effective solution that would motivate employees to help reduce these costs, and also maximize efficiencies with employee productivity and scheduling.

As a result, the company developed and implemented the “Rim Safe Colleagues at Work” program as a comprehensive safety incentive program to reduce employee accidents and subsequent claim losses. Each hotel property was challenged with minimizing accidents on the job, thus reducing workers’ compensation insurance costs, minimizing lost time at work and maintaining higher service levels. On a quarterly basis, the claims activity is calculated to determine which properties qualify for the award. The award amount increases for each consecutive quarter during which improvement is made.

Key components

Corporate executive level support was critical, so employees understood the importance of the program and to reinforce new behavior as part of their company culture. A safety team leader was appointed at each property to facilitate the program, maintain frequent communication and reinforce the messages coming from upper management. New hire trainings are conducted so the desired ‘safe’ behavior is taught from the outset and implemented as part of the company culture. Consistent communication from the home office to team leaders and to colleagues is an important reminder to drive the desired behavior. Finally, identifying the right incentive to properly motivate and reward results was crucial.

Mary Ann Kuhn, Director of Human Resources at Rim Hospitality, developed a comprehensive plan outlining all of the program objectives, requirements, key stakeholders, communications, training, projected costs and benefits. She evaluated the different types of employee incentives used by the company for other programs including cash, store gift cards and scratch cards. The feedback received from employees was that these types of awards were too limiting, did not create enthusiasm or a sense of recognition and did not appeal to all levels of employees.

Based on this feedback, Rim Hospitality selected a prepaid MasterCard card as the incentive. Because the card can be used anywhere MasterCard debit cards are accepted, the employee can choose whatever they want and making them feel truly rewarded. In addition, the employee is reminded of their award each time they use the card, reinforcing the benefits of the program and further foster company loyalty.

Services provided

For the incentive award, Rim Hospitality’s requirements included a provider that was experienced in offering prepaid MasterCard cards, had a reputation for outstanding service and the ability to fulfill both large and small orders. “We were looking for a long-term relationship to maintain consistency within our program. After evaluating a number of providers, Springbok Services was the clear choice to partner with,” says Kuhn.

Springbok implemented the program to fulfill the awards on a quarterly basis. The list of recipients is submitted electronically to Springbok each quarter and the personalized MasterCard cards are made and bulk shipped to Rim Hospitality. Awards are handed out at each hotel property to provide a personal touch, give upper management the opportunity to further reinforce the positive behavior they are looking for and share the results of the program amongst all the hotels in a motivating way.

The prepaid MasterCard card design includes a safety logo to reinforce the program’s purpose, and is embossed with the recipient’s name and special message for a more personal touch.

Rim Hospitality experienced positive results almost immediately, which have steadily increased. Over two years, they reduced workers compensation claims by 29 percent, had a six percent reduction in their Ex Mod score, from 1.10 to 0.94, and a US$8.34 reduction in comp rate. The medical/indemnity claims ratio, which is typically 60/40, changed from 37/45 percent in 2003, to 73/27 percent in 2005.

The bottom line was a savings of US$634,000 and a 3.4 to 1 ROI, generating enthusiasm from all levels of the company. Most importantly, Rim Hospitality has created a better and safer work environment for their employees.