Engaged WorkforcePerformance Management & Rewards

The Baker’s Dozen—Recognition Case Study:Employee Incentive Safety Program

Rim Hospitality safeguards employees at the workplace with help from Springbok Services.

by Sheri Duval, Director of client services, Springbok Services, Inc.

With more than 20 hotel and boutique properties totaling nearly 4,000 rooms, Rim Hospitality has a reputation as one of the most respected hotel property management services companies. It offers full-service management of hotel, resort, and boutique properties and is affiliated with several national brands including Preferred Hotels and Resorts Worldwide, Hilton, AmeriSuites, Radisson, Courtyard, Residence Inn, Fairfield Inn & Suites by Marriott, Sheraton, Holiday Inn, and others.

With rising workers compensation expenses, Rim Hospitality needed to find an effective solution that would motivate employees to reduce these costs and maximize employee productivity and scheduling efficiencies. Springbrook Services had the right answer. Established in 1998, Springbok is a provider and processor of prepaid MasterCard programs issued through KeyCorp. Springbok provides a wide variety of distinctive and secure prepaid solutions to more than 4,000 clients.

PROGRAM OVERVIEW
Rim developed and implemented the “Rim Safe Colleagues at Work” program as a comprehensive safety incentive program to reduce accidents and subsequent claim losses. Each hotel property was challenged with minimizing accidents on the job, thus reducing worker’s compensation insurance costs, minimizing lost time at work, and maintaining higher service levels. On a quarterly basis, the claims activity is calculated to determine which properties qualify for the award. The amount increases for each consecutive quarter during which improvements are made.

Mary Ann Kuhn, director of HR at Rim Hospitality, developed a comprehensive plan outlining all of the program objectives, requirements, key stakeholders, communications, training, projected costs, and benefits. Rim Hospitality evaluated the different types of employee incentives used by the company for other programs, including cash, store gift cards, and scratch cards. The feedback received from employees was that these types of awards were too limiting, did not create enthusiasm or a sense of recognition, and did not appeal to all levels of employees.

Based on this feedback, Rim Hospitality selected a prepaid MasterCard card as the incentive. Because the card can be used anywhere MasterCard debit cards are accepted, the employee can choose whatever they want, making them feel truly rewarded. In addition, employees are reminded of their award each time they use the card, reinforcing the benefits of the program and further fostering company loyalty.

For the incentive award, Rim Hospitality needed a provider that was experienced in offering prepaid debit cards, had a reputation for service, and the ability to fulfill both large and small orders. “We were looking for a long-term relationship to maintain consistency within our program.

After evaluating a number of providers, Springbok Services was the clear choice to partner with, said Kuhn.

Springbok implemented the program to fulfill the awards on a quarterly basis. The list of recipients is submitted electronically to Springbok each quarter, and personalized MasterCards are made and bulk shipped to Rim Hospitality. Awards are handed out at each hotel property to provide a personal touch and give upper management the opportunity to further reinforce the positive behavior they are looking for and share the results of the program among all the hotels in a motivating way.

The prepaid card design includes a safety logo to reinforce the program purpose and is embossed with the recipients name and special message for a more personal touch.

Corporate executive-level support was also critical so employees understood the importance of the program and to reinforce new behavior as part of their company culture. A safety team leader was appointed at each property to facilitate the program, maintain frequent communication, and reinforce messages coming from upper management. New-hire training is conducted so the desired “safe” behavior is taught from the outset and implemented as part of the company culture. Consistent communication from the home office to team leaders to colleagues is an important reminder to drive the desired behavior. Lastly, identifying the right incentive to properly motivate and reward results was crucial.

Rim Hospitality experienced positive results almost immediately, which have steadily increased. Over two years, it reduced worker’s compensation claims by 29 percent, had a six percent reduction in its Ex Mod score, from 1.10 to .94, and an $8.34 reduction in comp rate. The medical/indemnity claims ratio, which is typically 60/40, changed from 37/45 percent in 2003 to 73/27 percent in 2005. The bottom line was a savings of $634,000 and a 3.4-to-1 ROI, generating enthusiasm from all levels of the company. Most importantly, Rim Hospitality has created a better and safer work environment for employees.

Tags: Engaged Workforce, Performance Management & Rewards

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