The 2 Greatest Tips to Employee Incentive Programs
Here’s an attempt at divulging all the aspects of employee incentive programs to consider. Before venturing into building an appropriate one for your establishment. From the “what’s, why’s to how’s of creating an effective employee incentive program.
What exactly is an employee incentive programs? “An employee incentive program is a formal scheme used to promote or encourage specific actions or behaviour by a specific group of people during a defined period of time. They are particularly used in Business management to motivate employees and in sales to attract and retain customers. Scientific literature also refers to this concept as pay for performance. ” Not only is it a motivational scheme, it promotes teamwork, boosts morale and hikes service levels.
Type of Incentive Program
Money is a doubly effective incentive than vacations or gifts based incentive program. Having a money based incentive program then makes sure that not only is there quantity in work performance but also quality based work performance. Also, if a competitive incentive program is implemented, then the performance levels increase in comparison to non-competitive incentive schemes.
Term of Incentive Program
Another factor to take into consideration is the period or term of the incentive program. The “Tasktalk” research team has suggested that long-term incentive programs have the largest effect on the work performance of employees in comparison to those of the short-term incentive program. Short term incentive program, i.e. of less than a month increases employee performance by 20%, whereas intermediate level of incentive program, which is for the period of a 1 to 6 months, hikes the employee performance by 29%. However, long-term programs that are more than 6 months have a raise in 44% of the employee work performance.
In conclusion, when considering to build a custom employee incentive program for those employees working along your side, the two factors that matter are the “terms of the program” and the “type of program”. We further looked in to see that money is a great drive in performance in comparison to other forms of gift. It is also important to note that having a long