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Incentive Reward Costs
A Safety Pays game features individual jackpots which will pay-out
certain dollar amounts approximately once a month. Dollar amounts
will vary depending upon the number of continuous accident/injury
free days a given group has accumulated. A dollar ceiling (eg. - $150)
can be placed on the jackpot or the jackpot can be left to go as high
as the employees are successful in continuous accident/injury free
days. Keep in mind, that to the extent the dollar value is increasing,
the greater the motivation by the employees to continue an accident
free workplace. Meanwhile, the reduction in workers' comp exmod's
and thus premium dollars is exponential against the dollar amounts
paid out to the employees. Translation: The greater the incentive
dollar pay-outs, the greater the workers' comp premium savings.
The following provide 3 different scenarios for what a company may
expect in terms of incentive dollar pay-outs. The first scenario assumes
no accidents or injuries during a full calendar year as well as no
jackpot caps. The second scenario also assumes no accidents/injuries
but places a cap of $150 on the jackpot. Finally, the third scenario
assumes only 2 injuries during a 12 month period, regardless of jackpot
cap.
Scenario #1
In this scenario we are making the following assumptions:
1. Targeting 1 Safety Pays program to an employee group of approximately
50 in size;
2. No accidents or injuries whatsoever occur within a given group
for a period of 1 year;
3. The program jackpot will increase one dollar a day during a 5-day
work week (usually jackpots are won after an average of 20-22 draws);
and
4. No dollar ceiling will be placed on the jackpot.
With the above assumptions, a jackpot will be won approximately once
a month with pay-outs as follows:
Starting Jackpot: $ 25.00
| Month
1................... $ 50.00 |
Month
7................... $200.00 |
| Month
2................... $ 75.00 |
Month
8................... $225.00 |
| Month
3................... $100.00 |
Month
9................... $250.00 |
| Month
4................... $125.00 |
Month
10.................. $275.00 |
| Month
5................... $150.00 |
Month
11.................. $300.00 |
| Month
6................... $175.00 |
Month
12.................. $325.00 |
TOTAL
PAYOUT: $2250.00
Keep in mind, that although this payout may seem high, workers' comp
claims would have been simultaneously eliminated, thus saving the
company anywhere from 10 to 100 times the incentive dollar costs.
Scenario #2
In this scenario we are making the following assumptions:
1. Targeting 1 Safety Pays program to an employee group of approximately
50 in size;
2. No accidents or injuries whatsoever occur within a given group
for a period of 1 year;
3. The program jackpot will increase one dollar a day during a 5-day
work week (usually jackpots are won after an average of 20-22 draws);
and
4. The jackpot will reach a maximum of $150.00 With the above assumptions,
a jackpot will be won approximately once a month with pay-outs as
follows:
Starting Jackpot: $ 25.00
| Month
1................... $ 50.00 |
Month
8................... $150.00 |
| Month
2................... $ 75.00 |
Month
7................... $150.00 |
| Month
3................... $100.00 |
Month
9................... $150.00 |
| Month
4................... $125.00 |
Month
10.................. $150.00 |
| Month
5................... $150.00 |
Month
11.................. $150.00 |
| Month
6................... $150.00 |
Month 12.................. $150.00 |
TOTAL PAYOUT: $1550.00
Now let's consider a more realistic scenario...
Scenario #3
Although the elimination of all workers' comp claims is our ultimate
goal, Safety Pays customers generally average a reduction of 50% in
their workers' comp costs over the course of a year.
Therefore, realistically the actual incentive dollars the company
will be paying out will be approximately half of the above scenario
based on the following assumptions:
1. Targeting 1 Safety Pays program to an employee group of approximately
50 in size.
2. Accidents are reduced 50% from 4 the previous year to 2 during
the first 12 months of the Safety Pays program.
3. The program jackpot will increase one dollar a day during a 5 day
work week (jackpots are generally won after an average of 20-22 draws);
With the above assumptions, a jackpot will be won approximately once
a month with pay-outs as follows:
Starting Jackpot: $ 25.00
| Month
1................... $ 50.00 |
Month
7................... $105.00 |
| Month
2................... $ 75.00 |
Month
8................... $130.00* |
| Month
3................... $100.00* |
Month
9................... $ 40.00 |
| Month
4................... $ 30.00 |
Month
10.................. $ 65.00 |
| Month
5................... $ 55.00 |
Month
11.................. $ 90.00 |
| Month
6................... $ 80.00 |
Month
12.................. $115.00 |
TOTAL
PAYOUT: $ 960.00
*The assumption is being made that an injury occurs twice in a year,
reducing the jackpot level to its base of $25 each time.
Because it is impossible to tell exactly when an injury may occur,
thus reducing the jackpot level, this proposal is projecting a per
program incentive dollar cost of $1000 per program application for
each Safety Pays program implemented.
For more information about incentive rewards, click here
and/or here.
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