Most people realize by now, safety programs are a great way to reduce accidents and increase morale. But, when it come to rewarding employees, which is better - cash or merchandise?

      "Money is a strong motivator, of course," says Joe King, operations manager for Midway Manufacturing. "But we've found merchandise to be even more powerful. Merchandise is permanent. It's something that's used or seen by employees on a daily basis -- a reminder of both our safety program and our appreciation of the employee's safety achievement."

       Midway's program is straightforward. The company offers certificates of increasing value for numbers of hours worked without an accident. Certificates begin at $25 for 500 accident-free hours, and go up to $500 for 10,000 hours. Employees redeem the certificates through a special catalog or through the company store.

       King says managers deliver the certificates at quarterly safety meetings, in front of co-workers and managers. "For the amount of money we save in lost time and worker's comp, this program is a small expense for us," he says. He estimates the program has reduced accidents company-wide by more than two-thirds since its inception.