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Performance Payoffs: Rewarding in-House Experts

A penny saved is a penny shared by Delaware Department of Transportation employees. Millions of dollars saved can turn into real dollars in their pockets under two new pilot programs that reward employees with cash if they propose money-saving ideas.

A penny saved is a penny shared by Delaware Department of Transportation employees. Millions of dollars saved can turn into real dollars in their pockets under two new pilot programs that reward employees with cash if they propose money-saving ideas.

A "Shared Savings Program," modeled after private-sector programs, encourages department employees to submit ideas for managing, building or buying something more efficiently. Any money the idea saves will go into a special account and, after a year, half of all the savings will go to department employees, with every employee getting an equal amount. "Every employee will benefit in some way," says Mike Williams, community relations officer for the department. "Not everyone is in a position to come up with changes that would result in significant monetary savings. We don't want to penalize those people."

A second program allows individual employees to earn financial recognition for outstanding performance or accomplishments. The Quality Service Award Program could award up to $10,000 to one person and can give out up to $200,000 total per year. That could mean either 20 people could each get $10,000 or many more people could get smaller amounts.

Transportation Secretary Nathan Hayward III's hope is that the programs will provide an opportunity to lower costs, improve the way the department does business, bolster morale and stir up some excitement among employees.

If the programs are successful, they likely will be set up in other state agencies. "We're the guinea pig," Williams says.

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