1 cost benefit analysis of an economic incentive model dipl.-ing. (univ.), m.b.a. henning krüger...
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Cost Benefit Analysis of an Economic Incentive Model
Dipl.-Ing. (Univ.), M.B.A. Henning Krüger
Bilbao, 4th February 2009
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• Why the incentive system was introduced
• Who can profit from the system
• Which preventive measures give premiums
• Qualitative benefits from the system
• Bonus point elasticity
• Correlation with accident/disease rate development
• Cost-benefit balance
• Conclusion
Table of Contents
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Incentive regardless of accident rate and costs
Road accident prevention
Prevention of occupational diseases
Reinforcement of national prevention targets
Means to evaluate the actual prevention status
Why the incentive system was introduced
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Which preventive measures give premiums
Safety Health Both
Protection against knife accidents
Skin protection Reintegration of long-term patients
Protection against falls and slips
Protection against cold
Training more than legally required
Machines Protection at VDU work
Audited OHS system
Traffic safety Ergonomics
Noise protection
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Do you solely use knives with a rounded point to cut sausages in your shop? Do you always use safety knives to open spice bags and cut sausage skins? What percentage of the total of your machines have been tested by an independent institution for safety?
For how many employees do you pay physical training to help strengthen their vertebral column?
yes no
Preventive measures - example
yes no
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Qualitative benefits from the system I
0 20 40 60 80 100
safety of machines
protection against cold
ergonomics
protection at VDU work
training more than legally required
protection against knife accidents
protection against falls and slips
traffic safety
skin protection
degree of target fulfillment in %
2007
2002
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Qualitative benefits from the system II
0 4 8 12 16 20
safety of machines
protection against cold
ergonomics
protection at VDU w ork
training more than legally required
protection against knife accidents
protection against falls and slips
traffic safety
skin protection
target fulfillment percentage points
difference 6-year versus firstever participants
8
Qualitative benefits from the system III
0
10
20
30
40
50
2005 2006 2007 2008
Number of audited OHS systems
9
Bonus point elasticity I
0
10
20
30
40
50
60
70
80
90
100
safety ofmachines
protectionagainst cold
ergonomics protectionat VDUwork
trainingmore than
legallyrequired
protectionagainstknife
accidents
protectionagainst falls
and slips
trafficsafety
skinprotection
0
5
10
15
20
25
30
target achievement in %
bonus points
10
Bonus point elasticity II
0
5
10
15
20
25
30
2002 2003 2004 2005 2006 2007
professional driver's training
deg
ree
of
co
mp
anie
s p
arti
cip
atin
g i
n
%
11
Correlation with accident/disease rate development I
0
5
10
15
20
25
30
2004 2005 2006 2007
road
acc
iden
ts p
er 1
000
FTE
.
optimum usage of driver's training no driver's training
12
y = -49,905x + 187,94
R2 = 0,5591
0
20
40
60
80
100
2 2,2 2,4 2,6 2,8 3
premiums achieved in % (in 2007)
Correlation with accident/disease rate development II
acci
den
t ra
te p
er 1
000
FT
E
13
50
60
70
80
90
100
2001
2002
2003
2004
2005
2006
2007
year
6-year participants
participants 2007
non-participants 2007
Correlation with accident/disease rate development III
acci
den
t p
er 1
000
FT
E
14
0
0,5
1
1,5
2
2,5
3
3,5
4
2004 2005 2006 2007
never participated in system
participated in system andcampaign
Correlation with accident/disease rate development IV
skin
dis
ease
s re
po
rted
per
100
0 F
TE
15
Cost-benefit balance
0
1
2
3
4
5
6
7
8
9
2002 2003 2004 2005 2006 2007
in m
illio
n €
premiums granted since 2002
theoretical accident costs reductionsince 2002
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The incentive system motivates for prevention
Positive development of target achievement
Not only the concrete measures are reinforced
Positive effect on OSH indicators
Expenditures are overcompensated by cost reduction
The collected data can serve as a benchmark
Conclusion