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What is Your Marketing Hook?

Written by: Sheryl Strasser

Article Overview: Company incentives have often been described as “golden handcuffs”, they make employees want to stay, or punish them if they leave. These company incentives come in many forms and example of a company incentive could be a loan for further education and as long as that employee commits to the company for a certain length of time, the loan is forgiven. However if the employee leaves the loan can become due and payable on demand. Employers will usually make these types of company incentives available to employees who are valuable to their company to ensure they remain loyal.

What is Your Marketing Hook?

There are many company incentives offered these days such as bonuses, benefits, a corner office, a plaque, praise from senior staff, promotions, the ability to work on high-profile projects, and the list goes on. Stock options also became a very popular form of company incentives for a while as a way of giving participating employees an opportunity to get better compensation and a sense of company ownership. But in recent years with the advent of fraudulent activities by some upper level management that led to the devaluation of stock or the outright demise of companies, employees are a little more resistant to taking stock options in exchange for lower salaries as a form of company incentives. Many people no longer trust management to look out for their best interests and to ensure that their investments in the company are safe.

Company incentives, also known as variable pay programs were a novelty in the late 90's, they were considered non-traditional. They were good news for employees who could now add substantially to their bottom line even while the rates of merit pay were shrinking. Companies realized that they could afford to pay individuals for specific goals, without having to guarantee amounts to everyone regardless of performance. When earnings were down they no longer had to pay out guaranteed raises that could threaten the companies existence. Employees would still be able to keep their jobs and hence morale and productivity would remain high thanks to company incentives.

Company incentive programs however are not easy to design. Invariably they require that the employees have an opportunity to participate in their design. It is also important that a good company incentive program keep in mind the business philosophy, be aimed towards long term goals, defer some of the compensation to attract and retain employees.

A company incentive program also needs to have precise and attainable goals and have elements that are within the employee’s control. The company incentives should try and reward team and individual accomplishment, foster co-operation between teams and departments. Finally it should pay out at the earliest most meaningful time for the particular company.

Company incentive programs are not exclusive to large companies. Smaller business can find their own ways to provide variable pay. Creativity is required and done right can very well help smaller companies attract employees that might otherwise only look into employment opportunities with larger companies. Company incentive programs are a great way for smaller companies to stay competitive without lowering their bottom line, they may even find that implementing a company incentive program can boost their bottom line.

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Article Tags: attainable goals, business philosophy, company incentive programs, company incentives, demise, devaluation, fraudulent activities, good company, incentive program, merit pay, plaque, profile projects, safe company, staff promotions, stock options, taking stock, term goals, trust management, upper level management, variable pay



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