How To Create an Employee Incentive Program
How To Create an Employee Incentive Program
Employee-recognition and incentive programs can help increase retention, productivity and employee morale. They can also decrease turnover by encouraging loyalty.
When designing a program, be sure to clearly define what behavior you want to reward and encourage.
"The primary reason to establish an employee-recognition program is to motivate performance that will improve your company's bottom line," says Allison Grace, president of Instant HR Solutions, a Charlotte consulting firm. "An effective program rewards and reinforces behaviors that have a positive impact on the company."
So how do you do that? To start: "Make sure that senior management is behind the program," says Matt Coben, owner of Charlotte-based Thunder Road Brandworks, a marketing-consultant firm. "If not, the program is doomed to failure."
In addition, make sure the program is aligned with your company's mission, vision and value, says Anthony Luciano, senior vice president of sales and marketing for The TharpeRobbins Co., a Statesville employee-award and recognition firm.
It's important to decide on a budget for the program, how long it will last and who will be responsible for it, Luciano says.
Next, determine who is eligible for the program, Grace says. "Recognize all levels of employees. Make sure everyone has a chance to receive meaningful recognition."
Don't assume one size fits all, she adds. "Employees are motivated in different ways. Identify what's important to them, and offer a variety of reward options."
For example, one type of program involves a points-based system in which points are awarded to employees "not for just doing their job, but for extraordinary actions," Coben says. But "don't make the bar so high that no one gets any points or rewards are unattainable," he adds. Employees' point totals are tracked, and they can choose rewards based on their total from a catalog of items whenever they choose.
But there are other ways to reward employees, Grace says. That can include a note that says "good job," taking an employee out to lunch, giving a plaque or certificate recognizing the employee, mentioning the employee's name in the company newsletter or at a staff meeting or giving extra days off.
Whatever you choose, Grace says, "Set specific performance goals that will benefit your organization and identify the thresholds that will trigger an award." Such goals may focus on productivity, quality, customer service, cost reduction, sales, attendance, profitability or length of service.
"Don't use a cookie-cutter approach -- every company is unique," Luciano says.
It's not enough, though, to just have a program. "You need to communicate the program properly and get the message out -- otherwise people won't participate," Luciano says. "First train your managers, and then go to the employees."
The message needs to be consistent. "Be clear about the types of performance and behaviors you are trying to encourage," Grace says. "Provide regular, ongoing reminders to keep enthusiasm high. And continuously evaluate and modify the program to ensure it continues to be effective.
"Behaviors you reward are likely to be repeated," she adds, "so make sure you are encouraging the right ones that will benefit your organization."
TOP TIPS
Clearly define the purposes of your program, what behaviors will be rewarded and how the system will work.
Decide on a budget for the program, how long it will last and who will administer it.
Choose a reward system that meets your employees' particular needs and motivations.
Communicate the program regularly so employees will participate and to maintain enthusiasm.
How To Create an Employee Incentive Program - To learn more about this author, visit Allison Grace's Website.
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Establishing an incentive program that is specific to your company can improve productivity, efficiency and overall morale
Employee-recognition and incentive programs can help increase retention, productivity and employee morale. They can also decrease turnover by encouraging loyalty.
When designing a program, be sure to clearly define what behavior you want to reward and encourage.
"The primary reason to establish an employee-recognition program is to motivate performance that will improve your company's bottom line," says Allison Grace, president of Instant HR Solutions, a Charlotte consulting firm. "An effective program rewards and reinforces behaviors that have a positive impact on the company."
So how do you do that? To start: "Make sure that senior management is behind the program," says Matt Coben, owner of Charlotte-based Thunder Road Brandworks, a marketing-consultant firm. "If not, the program is doomed to failure."
In addition, make sure the program is aligned with your company's mission, vision and value, says Anthony Luciano, senior vice president of sales and marketing for The TharpeRobbins Co., a Statesville employee-award and recognition firm.
It's important to decide on a budget for the program, how long it will last and who will be responsible for it, Luciano says.
Next, determine who is eligible for the program, Grace says. "Recognize all levels of employees. Make sure everyone has a chance to receive meaningful recognition."
Don't assume one size fits all, she adds. "Employees are motivated in different ways. Identify what's important to them, and offer a variety of reward options."
For example, one type of program involves a points-based system in which points are awarded to employees "not for just doing their job, but for extraordinary actions," Coben says. But "don't make the bar so high that no one gets any points or rewards are unattainable," he adds. Employees' point totals are tracked, and they can choose rewards based on their total from a catalog of items whenever they choose.
But there are other ways to reward employees, Grace says. That can include a note that says "good job," taking an employee out to lunch, giving a plaque or certificate recognizing the employee, mentioning the employee's name in the company newsletter or at a staff meeting or giving extra days off.
Whatever you choose, Grace says, "Set specific performance goals that will benefit your organization and identify the thresholds that will trigger an award." Such goals may focus on productivity, quality, customer service, cost reduction, sales, attendance, profitability or length of service.
"Don't use a cookie-cutter approach -- every company is unique," Luciano says.
It's not enough, though, to just have a program. "You need to communicate the program properly and get the message out -- otherwise people won't participate," Luciano says. "First train your managers, and then go to the employees."
The message needs to be consistent. "Be clear about the types of performance and behaviors you are trying to encourage," Grace says. "Provide regular, ongoing reminders to keep enthusiasm high. And continuously evaluate and modify the program to ensure it continues to be effective.
"Behaviors you reward are likely to be repeated," she adds, "so make sure you are encouraging the right ones that will benefit your organization."
TOP TIPS
Clearly define the purposes of your program, what behaviors will be rewarded and how the system will work.
Decide on a budget for the program, how long it will last and who will administer it.
Choose a reward system that meets your employees' particular needs and motivations.
Communicate the program regularly so employees will participate and to maintain enthusiasm.
How To Create an Employee Incentive Program - To learn more about this author, visit Allison Grace's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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