- October 27, 2021
- Posted by: Trust Bill Atorudibo
- Categories: Business Development, Career Development, Employee Management
It is common knowledge that one of the major ingredients of effective employee motivation is incentives. The right application of employee incentives can work wonders for any workforce.
In the Nigerian corporate world where work environments vary by organization, HR managers deal with a lot in trying to maintain a healthy and productive work environment all year round.
While you’re trying to ensure that you provide different incentive options to keep your employees motivated, you’re also being careful to not offer too much and create entitled employees.
Striking the right balance comes from understanding the right way to wield employee incentives as a force for increased workplace productivity.
What Are Employee Incentives?
An incentive is any object or item or desired activity that somehow fires up an employee to be more committed towards fulfilling his job obligations.
And motivated employees will give huge ROIs on productivity to the employer. But for this win-win situation to be achieved, you need to find out what incentives will work best for your employees.
In this article, we’ll look at the best incentive options for different workplaces, why they are important and how you can use them to greatly increase the performance of your employees.
What Are Employee Incentive Programs?
For employers or HR managers trying to maintain a healthy workforce, developing an employee incentive program that fits into your company’s structure will go a long way to ensure you achieve increased productivity.
While a tech firm can use social hangouts or free movie tickets to promote a healthier work-life balance for their employees, a data company or an outsourcing firm will be more inclined to provide incentives like free lunches and extended leave periods for employees.
The nature of the modern day work terrain makes it easy to find out what incentives your employees require to feel more motivated.
From gaming consoles, to weekend in-house games, there are a variety of good incentives that employers and HR managers can adopt to keep the workforce fire burning.
Why Employee Incentives Are Important?
For any employer aiming to achieve growth and improvement, the last thing you want to worry about is the commitment of your workforce to achieving their goals.
This is why you need to put measures in place to ensure they don’t break down due to accumulated fatigue, stress or boredom.
Taking conscious steps to inculcate a consistent employee incentive program into your company’s work culture can greatly improve employee morale. Some other important benefits of of employee incentives include:
- Increased and consistent productivity
- Better retention of top employees
- It becomes easier to attract and retain top professionals
- Increased teamwork and collaboration between employees
What Are Good Incentives For Employees?
Now while there are numerous types of employee incentives, we’ll list the most common incentives used by top HR managers to achieve consistent workforce productivity.
1. Appreciation Incentives
This class of incentives are usually used to celebrate a milestone, team achievement or mark a special occasion in the workplace. Incentives of this kind often include but are not limited to:
- Company-paid family activity events
- Ice cream socials
- Birthday celebrations
- Sporting events,
- Paid group lunches
- Sponsored sports teams
2. Reward Incentives
Reward incentives are frequently given in response to an employee’s positive or continuous performance.
An employer might acknowledge or celebrate an employee for a job well done in order to motivate the employee to accomplish more while also motivating other employees to strive for such heights.
Reward incentives usually include:
- Monetary rewards
- Exemplary service rewards
- Gift certificates.
- Some employers even offer Employee referral awards for employees who were responsible for the hiring of other invaluable employees.
3. Vocal Recognition Incentives
Employee morale may be improved by actions such as complimenting employees for great performance or recognizing them for a sustained period of productive labor.
Recognition incentives can be part of a weekly or monthly reward system, or they can be done on a daily basis.
Whether you’re highlighting a colleague’s successes at a staff meeting or privately sending an appraisal DM, this reward is an age-old method for enhancing employee engagement.
4. Compensation Incentives
As a HR manager or employer, it’s important to make sure that adequate compensation incentives are part of your business policy.
While employees strive to perform their jobs adequately, offering compensation perks will help ease the stress and improve their overall mood towards work.
These incentives usually include:
- Profit sharing
- Signing bonuses
- Stock options
- Family benefits
Why Are Employee Incentives Necessary?
Incentives tap into the emotional, psychological and mental orientation of employees. By offering appreciation or recognition other than their regular wages, you give employees a chance to feel valued and important to the organization.
If you’re trying to improve sales, incentives can motivate your sales team to collaborate more on following leads, brainstorming ideas on how to improve and even close faster deals.
From quality results to improved ROIs on designated tasks, you’ll build a loyal workforce and easily crush your business targets when you consistently incentivize employees.
How To Offer Incentives To Employees
As you develop a fitting incentive plan, be sure to spell out the exact criteria necessary to qualify or receive incentives.
Stating the requirements for incentives and fulfilling them accordingly will make sure you’re not encouraging some employees and demotivating others.
Some important guidelines to take into consideration when drawing up an incentive plan include:
- Ensuring that all employees understand the terms and conditions involved.
- Indicate a timeline – if applicable – that employees need to complete designated tasks to qualify for the incentive being offered.
- Ensure employees that meet the criteria are rewarded without unnecessary delay.
- Set realistic goals for employees. If the goals are too strenuous or vague, they may get discouraged and become demotivated.
- Be fair and unbiased when you award incentives to different employees or teams.
HR managers and employers can hardly go wrong with the right employee incentive program. Apart from being a very effective employee retention strategy, providing incentives regularly will ensure that a positive workplace ambience is maintained.
Employees will be motivated to think and suggest innovative ideas to improve their work processes, which consequently improves productivity and general output.
Luckily, many employee incentives are relatively easy to implement. Simple words of appreciation for a job well done or family benefits for a diligent employee can greatly improve employee morale.
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