Factors to consider before implementing an incentive scheme

Friday, 28 October 2011 10:18

Factors to consider before implementing an incentive scheme

Factors to consider before implementing an incentive scheme

Introducing incentive schemes for staff has a range of benefits, although there are a number of factors you will need to consider before implementation. By addressing these, the chance of the programme you have planned delivering benefits could be increased.

Most businesses realise that motivating employees is extremely important, particularly during a downturn when mergers, takeovers, redundancies and pay freezes may be occurring.

One of the best ways to ensure staff retention is to identify and provide rewards for best-practice behaviour.

However, before you take the plunge on staff incentives, there are several issues you will need to take into account.

Firstly, you should endeavour to outline a budget that you are willing to allocate to launching your incentive scheme.

This means examining how much to spend on lead generations, prospects converted, appointments made and other areas where you can track performance.

It is also a good idea to organise how the plan will be launched, as well as in what ways it will be promoted to your employees.

Communicating the rewards available and the benefits to be gained from such a scheme will ensure personnel are looking forward to its launch.

Selecting someone to monitor and operate the programme is a must, as you will need to know how well it is being received and areas that require improvement.

Businesses are also advised to have a clear structure of how long they are hoping to run their incentive schemes, with a good idea of ways in which they can maintain momentum.

An excellent technique to guarantee staff remain interested is to give regular updates via email and you can even introduce league tables for a competitive element.

With rewards initiatives, there are a number of tax implications that you may be required to consider.

Therefore, seeking advice from a financial expert or your scheme provider as to how you will be affected by implementing an incentive scheme is recommended.

Once you have the basics of the initiative outlined, you will need to think more carefully about what outcomes you are expecting to achieve and which members of staff will be eligible.

For example, it is important to decide whether it will be aimed at incentivising individuals or groups, and how you will adjust the scheme to reflect this.



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