Safety incentives and the risk of underreporting

Safety incentives recognise actions or outcomes related to prevention. Their design can encourage participation or have the opposite effect: concealing harm and problems to avoid losing a reward. Underreporting distorts the information needed for prevention.

In brief

Incentives should recognise improvements without penalising reports of harm or risks. Rewarding only the absence of accidents can encourage silence and bias indicators. Review the rules, workforce perceptions and quality of measures, as well as the number reported.

Contents
  1. Why a favourable indicator can conceal a problem
  2. Recognition versus pressure to conceal
  3. Criteria for designing the programme
  4. How to detect signs of underreporting
  5. Monitoring that adds preventive value
  6. Hypothetical example: a site’s quarterly award
  7. Related concepts
  8. References

A–Z dictionary →

Why a favourable indicator can conceal a problem

A fall in recorded accidents may reflect better conditions, but also changes in exposure or reporting. If reporting harm causes an individual or collective reward to be lost, pressure may arise to remain silent or delay the report.

The risk does not depend solely on the amount involved. Public recognition, comparisons between sites or a manager’s evaluation can also influence behaviour. Examine which behaviour the rule actually encourages and what happens to the person who brings unwelcome news.

Recognition versus pressure to conceal

Recognising useful suggestions, participation or verified corrections can support prevention. Linking success exclusively to zero reported cases creates a different tension: the visible result can improve while the problem remains.

In its US guidance, OSHA distinguishes programmes promoting participation from rate-based programmes. It does not consider every incentive prohibited, but stresses that incentives must not discourage reporting. That reference helps analyse programme design; its legal rules do not automatically transfer to other jurisdictions.

Criteria for designing the programme

Define a preventive purpose and understandable criteria. Review the effects on individuals, teams, managers and contractors. Ensure that reporting injuries, illnesses, incidents or hazardous conditions does not become a disadvantage within the programme.

  • Recognise useful contributions and verified improvements.
  • Avoid rewarding only the number of reports or forms.
  • Include groups with different opportunities to participate.
  • Explain how disagreements and errors are resolved.

Participation in design helps identify pressures that are not obvious to management. A statement of good intentions may be insufficient if the rules send another message.

How to detect signs of underreporting

Review delays, differences between records, recurring problems and comments about fear of reporting. A site with very few reports and numerous uncorrected conditions warrants analysis, even if its accident figures appear favourable.

These signs do not, by themselves, prove deliberate concealment. Language barriers, lack of awareness of the reporting channel or overly complex processes may also exist. Check with people and protect their confidentiality. The aim is to improve system reliability, not to start another competition based on who submits the most reports.

Monitoring that adds preventive value

Combine harm outcomes with indicators of risks and measures. It matters whether reports receive a response, relevant conditions are corrected and solutions work. Reducing reports should not be a stand-alone objective.

Provide feedback to participants and review the programme periodically. If adverse effects appear, change its criteria. Organisational learning requires uncomfortable news to circulate. Keep data-quality checks separate from any disciplinary process that may be appropriate, with safeguards and clear criteria.

Hypothetical example: a site’s quarterly award

A company gives an award to the site with no recorded accidents. Several people explain that they fear harming their colleagues’ chances by reporting an injury. Management reviews the programme before interpreting the absence of cases as success.

Recognition now considers verified preventive improvements and useful participation, without withdrawing the award because harm is reported. The reporting channel is simplified and the organisation checks whether people feel free to use it. An initial increase in reports is analysed in context rather than automatically penalised.

References

  1. OSHA. Clarification on Workplace Safety Incentive Programs, 11 October 2018. Official source
  2. OSHA. Recommended Practices: Worker Participation. Official source
  3. HSE. Learning organisations. Official source

Editorial information

Publication date: 19 October 2026.

Editorial responsibility: Sabentis Editorial Team.

Author: Pablo RodríguezLinkedIn

Executive Vice President of the ORP International Foundation and Chief Financial Officer of Sabentis.

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