COMPANY NAME
HEALTH, SAFETY , AND ENVIRONMENT INCENTIVE PROGRAM
Document No.
Approvals:
Preparer Date
Approver Date
REVISION HISTORY
REV. ISSUE PREPARED BY REVIEWED BY APPROVED DESCRIPTION OF
NO DATE AND DATE AND DATE BY AND REVISION
DATE
Incentive Program
TABLE OF CONTENTS
1.0 INTRODUCTION.............................................................................................................. 3
1.1 PURPOSE............................................................................................................ 3
1.2 OBJECTIVES.......................................................................................................3
1.3 DEFINITIONS AND ACRONYMS.........................................................................3
2.0 STATISTICS.....................................................................................................................4
2.1 PROACTIVE.........................................................................................................4
2.2 REACTIVE............................................................................................................4
3.0 GUIDELINES................................................................................................................... 5
3.1 QUARTERS..........................................................................................................5
3.2 TEAM.................................................................................................................... 5
3.2.1 Scoring.................................................................................................................. 5
3.2.2 Target Goals.......................................................................................................... 5
3.2.3 Earned Points........................................................................................................ 6
3.2.4 Weight................................................................................................................... 7
3.3 INDIVIDUAL..........................................................................................................8
3.3.1 Scoring.................................................................................................................. 8
3.3.2 Target Goals.......................................................................................................... 9
3.3.3 Earned Points........................................................................................................ 9
4.0 AWARDS....................................................................................................................... 10
4.1 TEAM AWARDS.................................................................................................10
4.2 INDIVIDUAL AWARDS.......................................................................................10
4.3 SPOT AWARDS.................................................................................................11
Construction Management - Phase 3 1 The Company
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LIST OF APPENDICES
APPENDIX A – PROJECT TEAM POINTS REGISTER
APPENDIX B – PROJECT INDIVIDUAL POINTS REGISTER
APPENDIX C – PROJECT INDIVIDUAL AWARDS
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1.0 INTRODUCTION
1.1 PURPOSE
The purpose of this Program is to provide incentive for employees of the Project to establish
and maintain a high degree of consciousness and participation in the Company Site Specific
Safety Health, and Environment Plan (SSSHEAP) and HSE Principles. This Program will
provide a systematic approach for recognizing and rewarding positive behavior that relates to
Health, Safety and Environment (HSE).
1.2 OBJECTIVES
The objective of this program is to facilitate t h e Zero Incident Goal from start to finish of the
Project; and as a result, all employees will go home safely at the end of each work day.
The Company has developed this Program to create a heightened sense of HSE
awareness among construction miners as individuals and also as team members at all
levels. As a result of this program, Project Construction Miners will plan and implement their
work consistent with this goal.
This program will also promote Safe Production, which is the principle that each construction
miner will perform “every task, the safe and right way, every time.”
1.3 DEFINITIONS AND ACRONYMS
HSE – Health, Safety and Environmental
MSHA – Mine Safety and Health Administration
SSHSEAP – Site Specific Safety Health and Environmental Plan
HSE Statistics – A process or indicator of HSE behavior and / or performance.
Proactive Measurement – A process that aims to prevent the occurrences of HSE related
incidents Reactive Measurement – A statistical indicator that represents HSE performance
2.1 STATISTICS
Company Name will aim to achieve the Purpose and Objectives of this program by monitoring
Project HSE Statistics:
Objective Leading Indicators (Proactive)
o Numbers
o Frequencies
Subjective Leading Indicators (Proactive)
o Employee Values
o Employee Attitudes
o Employee Opinions
o Employee Ideas
Objective Lagging Indicators (Reactive)
o Incident Rates
2.1 PROACTIVE
This Program principally promotes Proactive Project HSE Statistics by encouraging the
achievement by establishing Target Goals and rewarding Project Members for efforts that go
beyond what is required. Examples of Proactive Project HSE Statistics are listed below.
Safe Work Observations
Hazard Identifications (Unsafe conditions/Unsafe Acts)
Equipment Inspections
Workplace Inspections
Near Miss Reporting
2.2 REACTIVE
This Program will also recognize the lagging indicators or incident rates of the Project.
These Reactive Statistics are considered lagging because they are an observed result – or
measurement of a negative event, of the Project. If Proactive Statistics are achieved and
maintained, reactive Statistics should drop automatically.
Positive Reactive Project HSE Statistics will be realized through Project-wide participation in
the Proactive Project HSE Statistics listed in section 2.1.
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3.0 GUIDELINES
This HSE Promotional Program will be executed on a Quarterly basis. It will track and record
HSE performance of the Project Team and Individuals separately. Points will be earned based
on HSE behavior and performance that can be redeemed for awards at the end of each
Quarter.
3.1 QUARTERS
The HSE Promotional Program Quarters are defined below.
Quarter Begin Date End Date
1 1/1 3/31
2 4/1 6/30
3 7/1 9/30
4 10/1 12/31
3.2 TEAM
The Project Team’s HSE performance will be scored on the following HSE Statistics.
Completion of Workplace Examinations
Completion of Internal Regulatory Compliance Audits
Zero First Aid Cases
Zero Reportable Spills
Zero Reportable Damages
Zero MSHA Citations (Non S&S)
Zero MSHA Citations (S&S)
Zero MSHA Reportable Incident
3.2.1 Scoring
The Project Team scoring system is dynamic in that points are earned as well as reduced
depending on what measurement is being considered.
3.2.2 Target Goals
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Team Target Goals have been established by the The Company.
Measurements that have a Target Goal greater than zero (0) for the Quarter will result in
earning – or adding – of points for the team for each occurrence. Each of the HSE
measurements with an established quota greater than zero (0) begins the Quarter with zero
(0) points. As the Project Team completes the HSE processes, then points are accumulated.
The daily completion of Workplace Examinations, and weekly performance and compliance
of Internal Regulatory Audits all have an established Target Goals.
The Target Goal for the Completion of Completion of Workplace Inspections will be equal to
the number of Work Days for the given Quarter.
The Target Goal for the Completion of Internal Regulatory Compliance Audits will be equal to
the number of Work Weeks in the Quarter.
Project Team HSE Measurement Target Goal Established [per Quarter]
Completion of Workplace Inspections 61
Completion of Internal Regulatory
12
Audits
3.2.3 Earned Points
To determine the Earned Points for each Measurement, the quantity Attained will be divided
by the Team Target Goal to derive a percentage. This percentage will then be multiplied
by the Maximum Points allotted for each measurement to determine the Earned Points. A
sample of this calculation can be seen below:
Team Earned Points
Team Goal Static Dynami
Project HSE Target Attaine Attaine Maximu Earne Weigh c
Measure Goal d d [%] m d t [%] Weight
ment [Quarterly] [Qty] Points Points [%]
Workplace
61 56 92% 4.00 3.67 4.00 4.50
Exams
Completed
Goal Attained: (61/56) = 0.92 = 92%
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Earned Points: 4.00 x 0.92 = 3.67
3.2.4 Weight
The Static and Dynamic Weight calculated for each measurement analyzes of how much each
measurement can contribute – or has contributed – to the maximum positive value of
Earned Points or the absolute value of Earned Points, respectively.
3.2.4.1 Static Weight
The Static Weight represents the percentage of a specific Measurement in relation to the
Maximum Points for all Statistics.
3.2.4.2 Dynamic Weight
The Dynamic Weight represents the percentage of the current Earned Points of the given
Measurement with respect to the earned points of all Statistics combined (absolute value). This
is dynamic since it will change as points are earned and / or deducted throughout the Quarter.
An occurrence of any of the following Project Team HSE Statistics will result in a reduction
of points.
First Aid Cases
Reportable Spills (Greater than one (1) Gallon)
Reportable Damages (Greater than $1000)
MSHA Citations (Non S&S)
MSHA Citations (S&S)
MSHA Reportable Incidents
For the HSE Statistics, the Team begins each Quarter with 100% of the Maximum Points;
however, points are deducted upon each occurrence. This can be seen in the table excerpt
below.
Team Awards
Goal Dynamic
Project HSE Attaine Attaine Maximu Earne Static Weight
Measure Team Goal d d [Y/N] m d Weight [%]
ment [Qty] Points Points [%]
First
0 1 N 5.00 0 5.00% 0.00%
Aid
Cases
Reportable 0 0 Y 8.00 8.00 8.00% 8.08%
Spills
MSHA
Citations 0 2 N 8.00 (12.00) 8.00 12.12%
(Non
S&S
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In this example no points for First Aid Cases were earned because the goal was not met. The
total points that could be earned for this measurement are 5.00. The table excerpt does not
reveal all the Project Team Statistics, but it can be reasoned that since the Static Weight of
First Aid Cases (5.00%) is exactly equal to the Maximum Points of First Aid Cases (5.00),
then one-hundred percent (100%) of the Maximum Points for the Project Team is equal to 100.
Statistics that have a target goal of zero (0) occurrences will result in zero (0) points upon a
single occurrence; if more than one occurrence is attained, then points will be deducted at a
rate of one and half (1.5) times the Maximum Points for that Measurement.
If one of the HSE Statistics occurs more than once, the Dynamic Weight will be affected since
the total absolute value of the Earned Points will have changed. The Project Team Points
Register located in Appendix A will account for this by summing the absolute value of
each Measurement’s Earned Points and then dividing the absolute value of each
Measurement’s Earned Points by the summation. This is illustrated in the Table above. The
Dynamic Weight of MSHA Citations (Non S&S) is larger than the Static Weight because the
Quantity Attained is greater than one (1), which begins to reduce points at a rate of one and
half (1.5x), and therefore contributes more heavily to the Earned Points – albeit in a negative
way.
3.3 INDIVIDUAL
Each Project Individual will be scored based on the following HSE Statistics.
Safe Work Observation
Hazard Identification (Unsafe Acts/Unsafe Conditions)
Safety Meeting Participation
Audit Participation
Near Miss Reporting
Service on Project HSE Committee
3.3.1 Scoring
The Project Individual scoring system is dynamic in that points are earned as well as reduced
depending on what measurement is being considered.
There is only one Project Individual HSE Measurement that has an established Minimum – or
Quota, which is the completion of Safe Work Observations.
Individual HSE Measurement Established Quota [per Quarter]
Safe Work Observations 12
Individual employees will begin to accumulate Earned Points for Safe Work Observations
completed only after they have completed 12 for the Quarter. If the Individual does not
complete the minimum amount of Safe Work Observations there will be a deduction of
points equal to that difference between the Minimum Quantity and the Attained Quantity
times the earnable points per completion for each Safe Work Observations.
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3.3.2 Target Goals
Unlike the Project Team, Project Individual HSE Statistics do not have established Target
Goals; however, for each Project Individual HSE Measurement attained the Individual will earn
points.
3.3.3 Earned Points
The Company has assigned a point value for each Project Individual HSE Measurement. To
determine the Earned Points for each Measurement, the quantity Attained will be multiplied
by the established points per Measurement occurrence. The table below shows the HSE
values.
Project Individual Measurement Values
Project HSE Measurement Points Per Occurrence Minimum
Safety Meeting Participation 10 0
Safe Work Observations 25 12
Completed
Hazard IDs Recognized 25 0
Near Miss Report 25 0
Audit Participation 50 0
Service on Project HSE Committee 250 0
The Company will monitor and track Project Individuals’ Earned Points throughout each
Quarter. The Project Individual Point Register located in Appendix B illustrates how this will
be performed.
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4.0 AWARDS
The Company will utilize a point scoring system (explained in Section 3.2.1 and Section 3.3.1)
to facilitate the distribution of awards at the end of each Quarter. Points will be recognized for
the Project Team and also for each individual Project Construction Miners, and each has its
own Awards. A list of the HSE awards can be found in Appendix C – Project Individual Awards.
Awards have been chosen by The Company. The awards range from miscellaneous gadgets to
quality apparel. Each award will sport the The Company name and logo.
4.1 TEAM AWARDS
Level Description Points Required
Grand Denver Sporting Event 100
First Catered Lunch 92
Second Project T-Shirts 85
Third Breakfast Burritos 80
4.2 INDIVIDUAL AWARDS
Each Individual Award receives a classification based on the value of the item. The table below
illustrates this Program’s classification system for Individual Awards.
Class Value [$] Points Required
E 0.00 – 9.99 50
D 10.00 – 19.99 150
C 20.00 – 29.99 250
B 30.00 – 39.99 350
A 40.00- 49.99 450
A+ 50.00 + 550
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4.3 SPOT AWARDS
The Company will also award employees instantaneously or “On the Spot” in some cases. The
HSE awards will be reserved for employees demonstrate any of the following:
Active Participation in Safety Meetings
Safe Work Observation
Safety Leadership
The Class of Award to be given will be at the discretion of The Company and will be directly
related to the magnitude of the behavior observed.
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APPENDIX A – PROJECT TEAM POINTS REGISTER
Project Team Points Register
Static Dynamic
Team Target Attained Goal Attained Maximum Earned
Project HSE Weight Weight
Goal [Quarterly] [Qty] [% or Y/N] Points Points
Measurement [%] [%]
HSE Audit Participation 13 - 0% 4.00 4.00 4.00% 0.00%
Workplace Inspections 61 - 0% 6.00 6.00 6.00% 0.00%
Internal
Regulatory Compliance 3 - 0% 12.00 12.00 12.00% 0.00%
First Aid Cases - - Y 5.00 5.00 5.00% 6.41%
Reportable Spills - - Y 8.00 8.00 8.00% 10.26%
MSHA Citations (Non S&S) - - Y 8.00 8.00 8.00% 10.26%
Reportable Damages - - Y 10.00 10.00 10.00% 12.82%
MSHA Citations (S&S) - - Y 17.00 17.00 17.00% 21.79%
MSHA Reportable
Incidents - - Y 30.00 30.00 30.00% 38.46%
100.00 100.00 100.00% 100.00%
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APPENDIX B – PROJECT INDIVIDUAL POINTS REGISTER
Individual Points Register
No. Company Employee Project HSE Measurement Attained [Qty] Points/ Points
Measurement
Audit Participation - 25 (300)
Hazard IDs Recognized - 25 -
Safety Meeting Participation - 10 -
1 DOE, JOHN (300)
Safe Work Observation - 50 -
Near Miss Report - 25 -
Service on Project HSE Committee N 250 -
Audit Participation - 25 (300)
Observations
Hazard IDs Recognized - 25 -
Safety Meeting Participation - 10 -
2 DOE, JANE (300)
Safe Work Observation - 50 -
Near Miss Report - 25 -
Service on Project HSE Committee N 250 -
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APPENDIX C – PROJECT INDIVIDUAL AWARDS
Avg. Cost Min. Plan
Category Item Subtotal Class
[ea.] Order Order
E
E
E
E
E
E
E
E
D
D
C
C
C
B
B
B
B
B
B
B
A
A
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