The best incentive program will focus on one specific purpose, however the concept itself can be used to meet a wide variety of needs. Programs are built to reward high performance. Plans can encourage employees to align themselves with business priorities critical to any organization or industry.
These goals are all ideally accomplished while boosting employee retention and motivation, decreasing burnout, and allowing your company to thrive. Additional pay, paid time-off and rewards are the three most common types of incentives used. The most motivating rewards are not always obvious. Employees may find themselves overly stressed attempting to work for more serious rewards like extra pay or time off, and could find a challenge more enjoyable and motivating for lower-stakes rewards like tickets to sports events or the theatre, casual dress days, a company party, gift cards, dogs at the office, and countless others.
The use of focus groups and questionnaires can help identify which type of incentive, if any, will motivate the employees to perform above normal expectations. Employees should be given a clear and direct way to gain their rewards and want to be able to calculate what they have earned. Highly complex instructions or requirements will likely demotivate employees from even attempting to participate, accomplishing the opposite of their intended purpose, and an incentive plan that is not adopted by the organization as a whole and will not achieve the desired results that management expected.
Avoid segmenting out certain employee workgroups when developing the incentive plan. Incentive plans that focus on a small subset of the overall employee staff will lead to jealousy and resentment within the organization. A strategy to help you incentivize a diverse group of workers and job positions is being creative with individual and team incentives! These incentives can help other employees picture themselves as the one singled out, encouraging them to work harder.
Individual incentives can have their downsides too, however, potentially causing an overly competitive environment or further discouraging employees if they feel they can never reach the standards required. There has recently been an increase in interest in the use of employee share ownership plans and other incentive plans to improve engagement and performance across the workforce, which ultimately leads to an improvement in the value of the business.
For those looking at business exit and succession strategies, this can be an effective way of increasing the value of the business prior to exiting. Your ability to treat your employees the same as other businesses have - with similar wages, similar working conditions, similar reporting standards - gives you dramatically the SAME results.
Let's face it - that's not being competitive. Discover a more productive way of rewarding employees that can boost performance dramatically. All rights reserved. Skip to Content Main Menu Search. Search Form Keywords:. Home About Us Join Login. Advertisement: Register for Newsletter.
Advertisement: CPD small top. Print Tweet. Here are 6 steps to making your incentive compensation a success. Here are 6 steps to making your incentive plans a success: Determine what the plan intends to accomplish Identify, in detail, the improvable conditions desired, and the likely, attainable behaviours necessary to achieve them.
Analyse for appropriateness in your environment. And really determine what you want. Every element that you measure can inform your next program parameters to ensure greater success in the future. Share how the program impacted company performance and celebrate both individual and team achievements.
Support from top management is critical, so make sure company leaders are involved in presentations. If you have remote workers, consider web events or other ways in which to involve all participants in the celebration. Annual Partners. Previous Next. IMA Company Showcases. News Articles. How to Develop an Incentive Program. Legal Considerations. Global Incentive Programs. Distributor Resources. Media Training. Circle of Excellence Case Studies. Gift cards, e-codes and vouchers are often the most popular rewards for incentive and recognition programmes, as they can provide a great deal of choice and freedom in how and where people use their reward.
Targets should also be personalised where possible, ideally based on job specifications and responsibilities. First, allocate individuals with a goal, followed by the whole team - that way all levels of staff are motivated, and the targets they're aiming for become achievable and relevant.
Above all, an incentive scheme must offer ROI for your business. How do you do it? Start by looking back to the beginning of the programme, and evaluate whether the original objectives were achieved. Having key performance measures in place and routinely evaluating them can help to calculate this. Performance indicators will vary depedning on each programme's objectives, but can include measures such as staff turnover, absenteeism, employee engagement, and satisfaction.
Some of these factors are slightly more objective than others - you could try using staff surveys to measure staff satisfaction, and compare results over the course of a year. Monitoring the programme throughout the year is important to identify peaks and troughs in both take-up and performance, which allows you to adjust the level of communication or managerial input where needed.
It's also vital to regularly seek feedback from employees so they feel involved, and are motivated by the prospect that the programme will reflect their interests. If you'd like to know more about incentive and reward, as well as our top tips for ensuring excellent ROI in even the most difficult of financial climates, take a look at our free ebook below.
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