What Is An Employee Incentive Program?
Employee incentive programs are designed to reward employees that have excelled in their work. A reward scheme motivates employees to meet and exceed targets and adds to the overall performance of the company. The types of programs and rewards vary but the concept is the same for all incentive programs. The program is about recognizing the achievements and input of outstanding employees.
Human resources are integral to the success of any business or company. It is therefore essential in a highly competitive market to create a working environment that recognizes and rewards the contribution of employees. Third party employee recognition/reward programs help increase employee performance and in doing so increase the overall productivity of the company.
Apart from monetary remuneration it is important for employees to feel their work towards company goals is appreciated. Employee incentive programs are an opportunity for employers to boost company morale and to highlight the important contributions made by their employees. Employee recognition and reward programs motivate employees because incentive programs show a kind of specific appreciation that cannot be achieved with a paycheck. Employees who feel their work is really appreciated and their contributions are recognized are more motivated to achieve results.
When implementing an employee incentive program it is often good to talk to your employees about the kind of program that best suits them. Some employees might prefer cash rewards like performance related pay (PRP) or on-target earnings (OTE) while others will want another kind of reward. Communicating with employees about the kind of incentive program they want will further add to their motivation. If they have a sense that they are part of the decision making process they are more likely to respond to the incentives.
Employee incentive programs can be customized to suit the company. You may set targets and reward employees for meeting those targets or simply reward employees who go beyond the call of duty or put in extra work. Employee recognition programs go a long way to creating a happy and productive work environment. They create an environment that fosters the development of both individuals and the company in a way that is mutually beneficial.
An employee that feels appreciated will work twice as hard as one that feels their contributions go unnoticed. Employee incentive programs motivate employees and help solidify their commitment to the company. Workplaces that use these recognition programs have found they greatly increase office harmony, teamwork, morale and in turn overall performance. Employees are motivated to achieve greater results not only because of the rewards they receive but because of the appreciation they are being shown.