Guideline 11. Financial incentives

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The institution encourages enterprises to participate in prevention programmes by offering financial incentives.

Examples of financial incentives include “bonus-malus systems” or reward schemes that are applied in addition to risk-related contributions.

Guideline code

PREV_01600

Mechanism

The management should thoroughly analyse and clearly define the mechanism of the bonus-malus system and its financial impact on regular contributions.
The management should strive to achieve a maximum bonus or malus which results in significant additional contributions or rebates (i.e. around 25 per cent).
The management should ensure that the system is defined in such a way that the malus finances all bonus payments.
The management should ensure that the system takes into account the number, severity and financial impact of individual insurance cases.
The management should issue the administrative decision concerning extra payments or rebates independently of the regular annual contribution notice so that it attracts the employer’s attention.
The management should monitor financial expenditure on the reward scheme through the annual budget.
The management should develop and publish the categories on which financial rewards are based (e.g. technical measures, measures to support health prevention, development of employee skills and motivation, raising awareness of OSH, organizational measures such as certified occupational safety and health management systems) and criteria for rewarding preventive actions (e.g. “exceeding regulatory standards and efficiently improving prevention on site”).
The management should develop a simple and fair administrative procedure that ensures a short response time.

Parent

Structure

The board should agree on the most effective financial incentive schemes to stimulate prevention programmes among its members.
The board should decide to introduce a bonus-malus system in order to recognize the success or failure of prevention efforts by individual members.
The board should decide to introduce a reward scheme offering employers direct financial support for advanced prevention investments, in order to regulate prevention investments or stimulate the implementation of new safety technology.