Incentive scheme pays dividends

Research undertaken by the European Agency for Safety and Health at Work (EU-OSHA) suggests that economic incentive schemes encouraging companies to invest in risk prevention are a cost-effective option for governments looking to cut the numbers of work-related accidents and illnesses.

Many EU Member States already offer various kinds of financial reward for businesses that invest in keeping their employees safe. These rewards range from lower insurance premiums, state subsidies and grants, through to tax breaks, and preferential terms for bank loans for the best-performing businesses.

Three out of 14 case studies highlighted in the project provided sufficient data to conduct a cost-benefit analysis. All three resulted in a positive payout ratio, ranging from 1.01 – 4.81 Euros return for every Euro invested. Quantitative criteria covered accident rates, sick leave, and general improvement in working conditions.

For example, an incentive scheme introduced in the German butchery sector in 2002 led to a 28% fall in reportable accidents over the following six years compared to a 16% fall in the sector as a whole. In total numbers this means there were about 1000 fewer accidents per year in incentivised companies.
The report and a factsheet are available to download from: http://osha.europa.eu/en/topics/economic-incentives