ASSE Foundation ResearchASSE Foundation Research Safety Incentives

A GREAT DEAL OF UNCERTAINTY exists regarding the effectiveness of safety incentive programs in construction. Most research on incentives involves case studies and theoretical analyses of their advantages and disadvantages. Using primary survey data from construction firms and craftworkers, this article examines the impact of incentives on the safety performance of U.S. construction firms. The study found that incentives are effective at improving many of the safety performance metrics used in construction. However, differences exist within the industry regarding perceptions of their effectiveness. The performance of the construction industry has a tremendous effect on the U.S. economy. According to the U.S. Bureau of Economic Analysis, when one includes construction-related business involving design, equipment and materials manufacturing and supply, the construction industry accounts for 13 percent of the nation’s gross domestic product (GDP), making it the largest manufacturing industry in the U.S. Unfortunately, the construction industry does not achieve this performance without significant cost to the safety and health of the workforce. According to NIOSH, 13.3 workers per 100,000 in construction were injured in 2001. Furthermore, the total number of U.S. fatalities in private construction in 2001 was 1,225—one-fifth of all workplace fatalities in the U.S. Since the inception of OSHA in 1971, the safety performance of all U.S. industries has improved. According to the Bureau of Labor Statistics, the number of fatalities in construction alone has been reduced by half. This improvement is attributed to many industry efforts, such as adopting safer technologies, improved work methods, better training and more thorough accident investigations. Another measure some construction firms take to improve safety is the use of safety incentives. However, a great deal of debate surrounds the ability of incentives to improve not only safety but also other construction performance measures. In particular, there is concern about the viability of incentives as a provider of substantial long-term improvements (Prichard).