Allied Waste "Dedicated to Safety" Rewards Program

Company: Allied Waste Industries Inc.

Programs: "Dedicated to Safety" Rewards Program

Program Types: Safety Incentives

Program Details: The Dedicated to Safety (DTS) Rewards Program was launched on January 1, 2005. The program was designed to take place over a two-year span and sought to reinforce safety training, improve communication related to safety goals, foster a safer work environment, and reward employees for following safe work practices.

The primary target audience for this program included safety sensitive employees. These employees were categorized into two groups or tiers – drivers, mechanics, and heavy equipment operators (Group A); and sorters and other workers (Group B). The secondary audience for this program was the families of the safety-sensitive employees. Allied Waste felt it instrumental to the success of the program to acknowledge family support of employees and to create communication vehicles that would reach into employee homes and enable them to become involved in promoting workplace safety. All Star Incentive Marketing was engaged to help Allied create a bilingual reward program to promote workplace safety to employees and their families.

At the beginning of each program year, 2005 and 2006, All Star Incentive Marketing produced and distributed “safety launch kits” for each participating division. Each kit contained General Manager welcome letters, sample Safety Vouchers, participant announcement letters, posters, Safety Voucher order forms, award catalogs, and a training video - all of which were distributed in a custom storage box. Upon receipt of launch information General Managers were instructed to display the posters prominently throughout their facilities and to schedule initial safety meetings to ensure that they met with every safety-sensitive employee.

At the initial safety meeting, GMs distributed employee announcement letters and award catalogs. In addition, GMs showed samples of the Safety Vouchers that could be earned through the life of the program. Throughout the "Dedicated to Safety" program, participants were kept engaged with regular communications using the completely customized online award platform, landing page, award catalogs, posters, announcement letters, quarterly promotional flyers, thank you fulfillment cards, and participant surveys.

The program featured bilingual English/Spanish communication pieces and a wide variety of both online and offline options for participation and reward redemption. Printed award catalogs featuring brand name awards and travel awards and were published and distributed on a biannual basis. Posters designed to promote the entire program and highlight some of brand name awards that could be redeemed were displayed in high visibility areas throughout each divisional facility. Personalized bilingual letters were distributed on a regular basis to General Managers and participants outlining program goals, communicating program enhancements, and reminding those not yet participating on how to engage. Thank you fulfillment cards accompanied all award shipments to thank recipients for working safely and to reinforce the goals of the program. Periodic surveys, featuring a chance to win bonus points, were used to gather participant feedback and helped keep participants engaged throughout the two-year program.

Throughout the program, participants had the opportunity to earn Safety Point Vouchers that were redeemable online through a custom award website or off-line using the order form on the back of their voucher and the printed award catalog. Safety-sensitive employees who had not incurred any claims or violations during the previous month were awarded vouchers by their General Managers during their regularly schedule safety meetings.

Safety Vouchers were available in 25 and 10 point denominations (based on which group the employee was categorized). Group A employees could earn Safety Vouchers valued at 25 points each while Group B employees earned Safety Vouchers valued at 10 points each. Division General Managers had the discretion to award up to three vouchers per month if they felt it was more appropriate for their work¬force, but all employees of a specific division had to be rewarded equally based on their performance.

Safety Vouchers could redeemed for prizes such as Dell computers, Coleman tents, Sharp LCD TVs, and Sony camcorders at any time or accrued and combined over the two-year period to allow employees to modify their safety behavior in order to earn more Safety Vouchers and “reach” for high-ticket items such as appliances and travel. Safety jackets were awarded to all employees who had gone 1 or 2 years without an accident or violation. The jackets featured both the Allied name and the "Dedicated to Safety" patch, which used chevrons to indicate each year of safe work. The distribution of these jackets served as an extension of the "Dedicated to Safety" initiative reinforcing the company’s long-term commitment to improving the safety and health of its workforce.

Objective: Allied Waste's "Dedicated to Safety" program had three major objectives:

• To promote proactive work behavior that enhances workplace safety with an emphasis on promoting driving performance and reinforcing safety training.

• To reduce costs associated with worker’s compensation, liability insurance, and claims.

• To reinforce the importance of safe work practices by incorporating enhanced communications geared towards the families of safety sensitive employees who are instrumental in supporting their spouse’s pursuit of safety in the workplace.

Supplier: All Star Incentive Marketing

Sponsor Assocication: Incentive Marketing Association

Results: Since the program’s inception in January 2005, The Allied Waste "Dedicated to Safety" Rewards Program has successfully raised safety awareness, enhanced overall workplace safety, and improved communications. The program's success is evident in the significant reduction in the annual frequency rate, claims, and safety-related costs. The tremendous success of the 2005 and 2006 program also led to the development and launch of a 2007 safety incentive program with enhanced award options and communication tools.

Specific program results include the following:

• The 2005 frequency rate of 21.34 represented a 10.8% drop in frequency of safety-related incidents as compared with 2004, even though only about half of the qualified safety-sensitive Employees were enrolled in the DTS Rewards Program at that time. In 2006, with the majority of employees participating, Allied achieved a frequency rate of 17.43, representing an additional 18.3% drop. At the close of the two-year program, Allied Waste encountered an overall 27% reduction in frequency as compared with the frequency rates of 2003 and 2004, which averaged 23.87.

• Average industry claim-related cost increases are in the 7-10% range. Allied Waste has realized a measurable reduction in costs since the program’s inception. At the end of the 2005/2006 "Dedicated to Safety" Rewards Program, Allied Waste had realized a combined reduction of 2,520 claims.

• In a survey of program participants, 98% stated they understood how points are earned. Over 93% received safety communication from their managers on at least a monthly basis. 40,000 awards have been redeemed (over 90% online). Some 65% of participants visited the award site at least once per month. The program website was visited 103,813 times, averaging 142 visits a day. The highest volume days and times reported were Saturday and Sundays between the hours of 6:00 pm – 8:00 pm. This statistic confirms the fact that the safety message was able to resonate outside the workplace and those families of the workers were getting engaged in the program. High redemption of kitchen appliances, giftware, and jewelry - despite a predominantly male workforce - is a strong indicator that spouses are engaged in the program and influencing redemption.

Award Type: Circle of Excellence Award

Award Date: 2007