Incentive Program Basics
Every company needs a little extra motivation now and then. Incentive programs
or Appreciation programs can assist you in helping your employees enjoy their
job a bit more, and happy employees are more productive and work better with
each other and your clients. Before considering an Incentive Program, have a look
at your pay-scale. If an employee feels under-payed, an Incentive Program is not
the answer for motivation.
Steps to building a good program:
Communication ~
Pick a Reward ~
Suggestions ~ Goals
Communication
Incentives on their own aren't enough. Opening up the lines of communication
is the major goal for managers and upper management. An employee must know they
can discuss work issues with 'the boss' without fear of being ignored, patronized,
or hearing about it later from someone whom it doesn't concern.
If an employee comes to you with a concern, get directly to the heart of
the matter. Don't ignore their concern, appear dismissive, or tell them it will pass.
Ask the employee what resolution they suggest. Make sure they know you will consider
your options for solving the situation.
Work towards open communication between all your departments - staff
and workers - and try including workers in management meetings to show there are no
'secret agendas'.
The least expensive motivational tool is giving your employee more say in
his or her assignments. Find out what procedures they think could be changed for efficiency,
productivity, or ease and see if it's possible to make those changes. Give your
employees more freedom in their work enviroment and make changes only when real
problems begin.
Incentives and rewards will be completely disregarded if your employees
believe management doesn't care what they think. They will see the incentives
as a carrot on a stick.
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Pick a Reward
Once your communications are open, suggest an incentive program and make
a list of possible rewards. Have your employees vote to determine which rewards they would
like to receive. Pay attention to the voting. If few employees vote, few care,
and you may have other issues to resolve with your employees before implementing
the program.
If a company pays its workers fairly, cash is rarely good
motivation. It may win you a new hire, but current and long-standing employees prefer
appreciation and rewards which don't seem like a paycheck or bonus. Think of how many
people consider a year-end bonus as part of their normal pay.
To motivate them you need more, not to spend more, but something that can't
be tossed in with a paycheck. Don't throw the rewards around aimlessly. There are only
so many gold stars you can give out before a gold star doesn't mean anything anymore.
People who are happy while at work enjoy their work more and everyone
benefits. Below is a list of some possible reward ideas. Some you can use to make your
own list for your employees to choose.
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Suggestions
- A simple 'Thank You' - appreciation of good work, especially in a personal
note, is sometimes the most sincere reward
- Treat your employees with respect. Giving them a 'cute' reward might go over
well in one business, but in another be seen as demeaning
- A program for rewarding employees who do volunteer work outside of the company
- Staff meetings anywhere but the office, possibly a nice diner or cafe
- Set up a secret pal for the holidays or any employee special days
- Make a 'Thanks for your help' box. Have employees put the name of a fellow
employee who went beyond the call to help them. Draw a name monthly for a reward
- Start a birthday program. Have a gift delivered to each employee the week of their
birthday
- Have employee 'field trips' at least once a year. Rent out a skating rink,
bowling alley, or reserve tables at a great restaurant
- Reward perfect attendance with time off certificates
- Praise a job well done
- Give company swag - hats, shirts, jackets with the company name or logo. Don't
give pens, notepads and mugs with the company name, those are better for your clients
- One-on-one meetings if an employee seems unhappy
- Employment anniversary cards - paper or electronic greeting card
- Event tickets when a goal is reached, let the group with the goal choose the event
- Casual lunch with staff to gauge how things are going within their unit
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Setting Goals
The first rule to setting a goal for your employees is make it obtainable.
Setting a series of smaller goals to reach a higher goal will sometimes be best.
Remember, raising the mark too quickly or in too large steps will only discourage
your employees. Let your employees get a bit comfortable on every level they
reach, and work with them to decide if a new goal is simply too high. There is
sometimes a limit beyond which employees, production, and the company suffer.
Keep in mind, setting the wrong goal can backfire.
Rewarding the person with the most sales may pit the sales staff against
each other, while rewarding the sales staff for customer service and working with each
other may make the group, as a whole, more productive.
A positive, enjoyable work atmosphere can be the best motivation.
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