Non-cash incentive programs and fringe benefits can have a
powerful influence on attitudes, which should in turn improve
results. You can give employees the greatest incentive program,
but by impairing a sense of ownership in the organization.

If you don?t know what kind of incentive programs to employ so
as to motivate your people to work and increase productivity,
here are some tips that you can use:

1. Sharing the shares.

Use share schemes as an incentive program to reward people for
contributing to team success.

An employee who sees his or her efforts rewarded in company
shares will, in theory, identify with the company, be committed
to its success, and perform more effectively.

In reality, it may be hard to tell whether the company?s
success is due to employees owning shares, or whether the
success itself has led the company to issue shares. It is also
difficult to know whether employees would have performed less
effectively if no shares had changed hands.

Nevertheless, by giving people a stake in the company as an
incentive program, you are making a highly positive statement
about them, which encourages them to feel positive in return.

2. Gifts are not just for Christmas.

Surprise people with gifts they do not expect. Expected
remuneration has less impact than the unexpected. Even generous
pay rises are taken for granted after a while, as salary wishes
increase accordingly.

Incentive programs like a far smaller ?payment,? in the form of
a gift, have an unequal worth in the eyes of the recipient. An
employee could use a cash award to buy a gift, perhaps a
weekend vacation, but that would provide less satisfaction than
an incentive program in kind from the management as a reward for
work well done.

Consider this, which incentive program is better: A company
called for a special meeting for all of the employees that had
achieved the sales quota for the month. In the meeting, the
company announced that the incentive is a gift certificate.
They went to the Accounting Department, as instructed, signed
their name, and off they go.

Or: The company gave them a specialized mug embossed with the
word ?Congratulations,? plus a special card with a special
message personally written by the manager.

Between the two incentive programs, the latter is more
appreciative. Gift certificates could be a good incentive
program but it is sometimes taxable, so they get only a
fraction of what was written on it. Plus, the first incentive
program is more rigid, lacks personalization and appreciation.


On the other hand, the second incentive program is far more
favourable. A more specialized and personalized gift idea as
incentive program can be more appreciated. It makes your
employee feel that they are individually valued especially if
it comes with a ?thank you? note.

Best of all, presents are also a better incentive program and a
cost-effective method of motivating staff when cash is short or
when competition does not allow an increased pay.

3. Optimizing benefits.

Fringe benefits have become a much less effective incentive
program financially in many countries because of tax charges,
as mentioned earlier.

Good pension schemes, however, have become more attractive as
an incentive program wherever state-funded provision falls. The
same applies to medical insurance. The knowledge that the
company cares for its people in sickness, health, and old age
is a basic yet a powerful factor.

Other benefits, such as company cars, paternity leave,
vacations, and help with children?s education and care as
incentive programs can improve the quality of people?s lives.
Electronic devices, from mobile phones to computers, directly
benefit the company, but as an incentive program, the
individual also gains personally from their availability.

Ultimately, loyal and happy employees tend to work harder,
leading to increased overall productivity.

4. Bequeath status.

The modern company, with its flat structure, horizontal
management, and open style, avoids status symbols that are
divisive and counter-productive. Reserve parking places and
separate dining rooms are rightly avoided.

However, important-sounding job titles are easy and economical
forms of incentive program at the same time a better way of
providing recognition and psychological satisfaction.

So, now you know that incentive programs don?t necessarily mean
it has to be in the monetary form. Do remember that giving
people incentive programs of any kind sends a very positive
signal. As they say, it?s the thought that counts.


About The Author:

For more great incentive info and ideas check
out: http://www.incentive-insider.com