The relationship between an organization and its employees is purely professional for the most part. Employees internalize the goals of an organization, agree upon their targets at individual level, and get the job done for the organization. The organization pays them for the work with an industry-standard pay scale and benefits.
Brains, like hearts, go where they are appreciated
It is a mutually beneficial relationship that works. However, this is just a bare minimum, and if the relationship is limited to just these interactions, then the employees can leave the organization when they get the opportunity. The organization should give them some compelling reasons to stay loyal and remain with them through the challenges.
So, it is crucial for the organization to go beyond the bare minimum and ensure that the employees get incentive programs, perks and rewards whenever there is room for celebration – like birthdays, anniversaries or when there is achievement in his/her work. This keeps employees motivated and engaged.
What are incentive programs?
Rewards can be broadly categorized into incentive programs and gifts. Incentive programs are not necessarily monetary benefits. They range from extended breaks to boost work-life balance of employees to candidate referrals.
Incentive programs are types of rewards that come in the form of workplace benefits. The more an employee works and contributes to the organization the more incentives he or she gets. So, it is clearly linked to performance, productivity and positive behaviors. Incentive programs play an important role in linking activity to goals.
How to choose Incentive Programs
Incentive programs need to be carefully designed to achieve maximum impact. While choosing incentive programs, the organization should:
- Understand what the employees want and like, and choose programs accordingly.
- Align them around the core values of the organization, since incentive programs are also symbolic of what the organization believes in and approves of.
- Plan the budget for the incentive program. If it is too expensive, the program is not sustainable. If it is cheap, the employees may not feel that they got the reward they deserved.
- Decide the correlation between the magnitude of achievements and the value of rewards
- Make sure that the incentive program includes every single employee.
- Decide the value of rewards for different grades according to the stratification of the workforce.
- Personalize the experience of the incentive programs for every employee.
- Plan how to deliver the incentives to the employees. For instance, there can be a points system, where employees can reimburse the points to rewards. The delivery mechanism needs to be finalised.
- Take special circumstances into account, such as lockdown and remote working environment. For example, if the reward points can be reimbursed as home office essentials, then it would be useful for an employee to create a better work desk at home.
- Clearly communicate the incentive program and available benefits to the employees.
Flexibility in designing incentive programs go a long way in enriching the experience of the employees with the organization, leading to better employee retention and happiness at the workplace.
Employee incentive ideas
Following are some of the employee incentive ideas that work.
1. Monetary Incentives
Monetary benefits are some of the foremost connecting factors between an employee and the employer. When the employees can gain monetary benefits beyond the payscale, it reinforces their relationship with the organization.
While monetizing over-time work is a standard practice across industries and sectors, there are other ways of providing monetary benefits as well. For instance, organizations can share a portion of the profits with the employees by adding to their retirement payment. Top-tier employees in some sectors are provided with the shares of the company, which is an attractive incentive program. When the employees work hard to create value, the value of their shares increase, benefiting them directly. The employees can also be given bonuses and salary hikes based on performance and achievements.
2. Points-Based Rewards
Points-based rewards system is an employee incentive idea that provides a vast scope for duly rewarding the employees. The employees can accrue points through a period, and later convert them into rewards from a large catalog of gifts.
There are various third-party vendors offering such incentive programs for organizations. These incentive programs usually come with a card which is acceptable in various shops and commercial spaces. The points are added to the card digitally, and the employee has the freedom to use them in the way he/she wants, to buy various items by converting the points. There are many categories of rewards for the employees to choose from- from dining options to electronics, jewellery, etc. Such flexibility makes this employee incentive idea attractive.
3. Health Programs
Health and wellness of employees is crucial for them to be at their productive best, more so in the time of pandemic, where physical and mental health have severely impacted the employees. Organizations can provide the employees with insurance, which will give them a safety net that they can rely on during difficult times. They can organize medical checkups and health screening for the employees.
Some companies have organized vaccination drives, by collaborating with major hospitals to protect the employees from Covid-19. Organizations can also provide the option for wellness programs like spa membership and yoga sessions that help employees get relieved from work pressure.
4. Choice of Work
Employees have preferences even within the limited purview of their job. They may want to work in a different shift or with a different team or on a different project. When they get the flexibility to choose, it gives them a great deal of motivation to perform better. Providing them with such choices can be an incentive program. Companies that are present in different countries often provide opportunities for training or on-site placements in other countries to their best employees who need to be motivated and persuaded to stay with the organization.
5. Skill Development
Education is a part of life. Employees keep learning to not only update their knowledge in their area of expertise to perform well, but also to qualify for promotion to higher positions. By learning new skills and updating their knowledge, employees add value to their position and the organization.
When the organization enrols them in these programs or reimburses the fees, this incentive program goes a long way in helping employees grow at personal level, meet their career aspirations and add value to the organization.
6. Referral Programs
Success of an organization is dependent on its employees. Finding the right employee for any position is a challenge. Employees’ contacts outside the organization, especially in their previous workplaces, is a pool of potential candidates.
When the employees refer good candidates, and if they are selected, then the organization can provide a monetary incentive for suggesting a candidate who fits the job description as well as the organization culture.
7. Promotions and Social Recognition
For employees, professional growth and career achievements are close to heart. Promoting them at the right time for their achievements is a proven employee incentive idea that motivates them to be productive and engaged. While promotions can be seen as a quintessential incentive program, being recognized and appreciated for work motivates the employee to perform well consistently. Getting compliments, applause and accolades for good work is a fulfilling experience, and it boosts the morale of the employees.
8. Extended Vacation Time
Work-life balance is a highly sought-after quality in a job. Vacations and quality time with the family play a vital role in striking the right work-life balance. Employees who have given the most for the organization need proportionally longer time with their family. Therefore, giving the employees who perform to the best of their abilities the extended breaks that they deserve is an excellent incentive program.
9. Gifts
Giving gifts periodically to the employees is a good incentive program. It increases the rapport with the employees and enriches the experience for employees at the workplace. Further, gifts are more personalized; it appeals to the employees and brings them closer to the organization. Some of the most common gifts for the employees may include:
Stationery – Notebooks and pens are a natural fit to a work desk, and they are really useful. Similarly, planners, bookmarks, etc, can also be useful gifts.
Things that help the employee personalize the workspace – From coffee mugs to posters, there are a vast number of items that the employees like to have on their work desk.
Motivational items – Motivational posters and quotes that can be kept on the desk keep reminding the employee of the goals he/she needs to accomplish.
Free Passes and coupons – Free passes to various events and gift coupons give employees a good incentive. They can use these passes and coupons when they spend time with their family.
Electronics – Electronics are seen as more sophisticated gifts. Everyone has some affinity towards gadgets, and gifting electronic items such as headphones and speakers can pamper the employees.
10. Paid Community Service of Volunteer Work
Show your employees that you care what they care about by encouraging them to serve the community or their favorite charity. Give employees paid days off to devote time to what they care about as an individual.
This can be as a bonus to employees, can be instituted as an annual volunteer day, or can be something employees do as they see fit. If they know that their workplace cares about what they value, they’ll feel that they work for a value-led organization that recognizes every part of who they are as an individual and a worker.
Evaluating and Reviewing Incentive Programs
The most important part of any incentive program is the understanding of its reach and effectiveness. When the organization conducts employee engagement surveys and measures employee happiness, the reach and effectiveness of the incentive programs, and the problems in them can be measured. The organization should follow-up with corrective action and modify the incentive programs based on feedback, if needed.
You can also engage employees through a system of awards and recognition. Paired with your incentive program, this can be incredibly effective. Your company can use a digital platform or software to help boost employee engagement. Software such as Profit.co’s employee engagement module help engage employees, recognize effort, and open more lines of communication and appreciation within a company. To see how Profit.co’s platform can help your organization, book a free demo today!