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How To Ensure Your Employee Incentive Program Pays Off
By BE Staff | Published   | Business Practices | Rating:
How To Ensure Your Employee Incentive Program Pays Off
Non-cash incentive programs and fringe benefits can have a
powerful influence on attitudes, that should in turn improve
results. You can give employees the greatest incentive program,
however, by impairing a sense of ownership in the organization.
Ultimately, loyal and happy employees tend to work harder,
leading to increased overall productivity.

1. Share Ownership

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. A company with shares in the company will see that,
quite literally, their sucess is the company's sucess, and vice
versa. The harder they work, the better chance their shares
have of increasing in value. 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 the 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, that encourages them to feel positive in return.

2. Gifts Aren't 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
increases accordingly. Incentive programs are like a far
smaller payment, in the form of a gift, and are priceless 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 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 lacks personalization. On the other hand, the second
incentive program is far more favourable. A more specialized
and personalized gift ideas 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 increase in pay.

3. Optimize Benefits

Fringe benefits have become much less effective incentive
programs financially in many countries because of tax changes,
as mentioned earlier. Good pension schemes, however, have
become more attractive as incentive programs wherever
state-funded provision have fallen. 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

- Company cars
- Paternity leave
- Vacations
- Help with children?s education
- Medical care
- Mobile phones
- Computers
- Spas

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. Important-sounding
job titles are easy and economical forms of incentive that
provide recognition and psychological satisfaction. 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 employee incentive related
articles and resources check out http://www.incentive-tips.com
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BE Staff
Our staff consists of several contributors from various industries. The articles from our staff are usually product or company related, specific topics are usually contributed from our regular authors. 

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