COMPANY NAME

HEALTH, SAFETY , AND ENVIRONMENT INCENTIVE PROGRAM

Document No.

Approvals:

Preparer

Approver

Date

Date

REVISION HISTORY
REV.
NO

ISSUE
DATE

Incentive Program

PREPARED BY
AND DATE

REVIEWED
BY AND
DATE

APPROVED
BY AND
DATE

DESCRIPTION OF
REVISION

TABLE OF CONTENTS
1.0

INTRODUCTION.............................................................................................................. 3
1.1
1.2
1.3

2.0

STATISTICS..................................................................................................................... 4
2.1
2.2

3.0

PURPOSE............................................................................................................ 3
OBJECTIVES....................................................................................................... 3
DEFINITIONS AND ACRONYMS......................................................................... 3
PROACTIVE......................................................................................................... 4
REACTIVE............................................................................................................ 4

GUIDELINES................................................................................................................... 5
3.1
3.2

QUARTERS.......................................................................................................... 5
TEAM.................................................................................................................... 5
3.2.1
3.2.2
3.2.3
3.2.4

3.3

INDIVIDUAL.......................................................................................................... 8
3.3.1
3.3.2
3.3.3

4.0

Scoring.................................................................................................................. 5
Target Goals.......................................................................................................... 5
Earned Points........................................................................................................ 6
Weight................................................................................................................... 7
Scoring.................................................................................................................. 8
Target Goals.......................................................................................................... 9
Earned Points........................................................................................................ 9

AWARDS........................................................................................................................ 10
4.1
4.2
4.3

TEAM AWARDS................................................................................................. 10
INDIVIDUAL AWARDS....................................................................................... 10
SPOT AWARDS.................................................................................................. 11

Construction Management - Phase 3

The Company
Doc

LIST OF APPENDICES
APPENDIX A PROJECT TEAM POINTS REGISTER
APPENDIX B PROJECT INDIVIDUAL POINTS REGISTER
APPENDIX C PROJECT INDIVIDUAL AWARDS

Construction Management - Phase 3

The Company
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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.

2.2

Safe Work Observations

Hazard Identifications (Unsafe conditions/Unsafe Acts)
Equipment Inspections
Workplace Inspections
Near Miss Reporting

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.

The Company
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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.

3.2

Quarter

Begin Date

End Date

1/1

3/31

4/1

6/30

7/1

9/30

10/1

12/31

TEAM

The Project Teams HSE performance will be scored on the following HSE Statistics.

3.2.1

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
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

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

3.2.3

Target Goal Established [per Quarter]

Completion of Workplace Inspections

61

Completion of Internal Regulatory

Audits

12

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

Project HSE
Measure
ment
Workplace
Exams
Completed

Team
Target
Goal
[Quarterly]

Attained
[Qty]

Goal
Attained
[%]

Maximum
Points

Earned
Points

Static
Weight
[%]

Dynamic
Weight
[%]

61

56

92%

4.00

3.67

4.00

4.50

Goal Attained: (61/56) = 0.92 = 92%

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

Project HSE
Measure
ment
First Aid
Cases

Reportable
Spills
MSHA
Citations
(Non S&S

Team Goal

Attained
[Qty]

Goal
Attained
[Y/N]

Maximum
Points

Earned
Points

Static
Weight [%]

Dynamic
Weight
[%]

5.00

5.00%

0.00%

8.00

8.00

8.00%

8.08%

8.00

(12.00)

8.00

12.12%

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 Measurements Earned Points and then dividing the absolute value of each
Measurements 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
Safe Work Observations

Established Quota [per Quarter]

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.

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

10

25

12

Hazard IDs Recognized

25

Near Miss Report

25

50

250

Safety Meeting Participation

Safe Work Observations
Completed

Audit Participation
Service on Project HSE Committee

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.

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

4.2

TEAM AWARDS
Level

Description

Points Required

Grand

Denver Sporting Event

100

First

Catered Lunch

92

Second

Project T-Shirts

85

Third

Breakfast Burritos

80

INDIVIDUAL AWARDS

Each Individual Award receives a classification based on the value of the item. The table below
illustrates this Programs classification system for Individual Awards.
Class

Value [$]

Points Required

0.00 9.99

50

10.00 19.99

150

20.00 29.99

250

30.00 39.99

350

40.00- 49.99

450

A+

50.00 +

550

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.

APPENDIX A PROJECT TEAM POINTS REGISTER

Project Team Points Register

Project HSE
Measurement
HSE Audit
Participation
Workplace
Inspections
Internal
Regulatory
Compliance Audits
First Aid

Team
Target Goal
[Quarterly]

Attain
ed
[Qty]

Goal
Attained
[% or

Maxim
um
Point

Earn
ed
Poin

Stati
Dyna
c
mic
Weig
Weigh
ht
t [%]
4.00%
0.00%

13

0%

4.00

4.00

61

0%

6.00

6.00

0%

12.00

12.00

5.00

5.00

5.00%

Reportable Spills

8.00

8.00

8.00%

10.26

MSHA Citations (Non

8.00

8.00

8.00%

10.26

Reportable Damages -

10.00

10.00

10.00

12.82

MSHA Citations
MSHA
Reportable
Incident

17.00

17.00

17.00

21.79

30.00

30.00

30.00
%
100.00
%

38.46
%
100.00
%

100.0
0

100.
00

6.00%
12.00

0.00%
0.00%
6.41%

APPENDIX B PROJECT INDIVIDUAL POINTS REGISTER

Individual Points Register

No. Compan Employe
y
e

DOE,
JOHN

Project HSE
Measurement
Audit
Participation
Hazard IDs

Points/Meas
urement
25

25

Safety Meeting

10

Safe Work

50

25

250

25

(300)

25

Safety Meeting

10

Safe Work

50

25

250

Near Miss
Report
Service on Project HSE
Committee
Audit
Participation
Hazard IDs
2

DOE,
JANE

Near Miss
Report
Service on Project HSE
Committee

Attained
[Qty]

Points
(300)

(300
)

(300
)

APPENDIX C PROJECT INDIVIDUAL AWARDS

Categor
y

Item

Avg.
Cost
[ea.]

Min
.
Ord

Pla
n
Ord

Subtotal

Class
E
E
E
E
E
E
E
E
D
D
C
C
C
B
B
B
B
B
B
B
A
A