Why Cash is King for Construction Safety Incentives

Construction is a dangerous industry. Getting crews to consistently follow critical safety protocols is an ongoing challenge. While training and disciplinary measures are important, research shows that positive incentives are highly effective at motivating compliance. And when it comes to safety incentives, cash is king.

…research shows that positive incentives are highly effective at motivating compliance. And when it comes to safety incentives, cash is king.

A study by the Incentive Research Foundation found that construction workers perceive cash rewards as having the highest value compared to non-monetary incentives. Crews consistently rate cash bonuses as the most desirable reward for hitting safety targets and demonstrating safe behavior on the job site. The immediacy and fungibility of money makes it a stronger motivator for following safety rules than merchandise, gift cards or other prizes.

Additionally, an analysis of over 50 studies on workplace rewards conducted by the London School of Economics concluded that financial incentives are the most powerful method for increasing employee effort and performance. For construction firms aiming to minimize incidents and lost time due to injury, cash rewards provide the best ROI for incentivizing safety compliance.

financial incentives are the most powerful method for increasing employee effort and performance

Some safety managers worry that cash rewards will incentivize crews to hide accidents and near-misses. However, a study published in the Journal of Safety Research found that when cash incentives are tied to leading indicators like safety audits, equipment inspections and training participation rather than lagging indicators like incident rates, they increase safety compliance without causing underreporting.

This is not to say non-cash rewards have no place in a safety program. Occasional lunches, or a branded shirt are appreciated and can supplement cash incentives. But dollar for dollar, financial rewards are the most effective way to motivate construction crews to work safely.

For construction companies wanting to maximize the impact of their safety budget, building the incentive strategy around cash is the smart approach. Whistle Rewards’ intuitive software platform makes it simple to manage cash-based safety recognition programs that integrate with your existing payroll process. Our construction clients see safety compliance increase 50%+ on average after implementing cash incentive plans.

To learn more about applying an effective cash rewards program to boost safety at your company, contact us to arrange a free consultation. One of our construction safety incentive experts can share best practices and help design a program optimized for your company’s crews, safety goals and budget.