How easy is it to implement staff reward schemes?

Thursday, 26 April 2012 06:21

Incentive schemes can help motivate staff

Incentive schemes can help motivate staff

An effective employee reward scheme may be just what your business is looking for to keep staff motivated during what are tough economic times. Such programmes do not have to be expensive and can play an important role in maintaining good relations between workers and bosses.

The constant barrage of bad news on the economy has left the public worried about the future and, even if your company is on a strong financial footing, you are likely to find that many members of staff are concerned about their job security. Fear of ending up out of work is one of the major factors that prompts good employees to begin looking for other positions.

Recruiting and training someone to replace an experienced worker is expensive, so it is worth thinking about how you can reassure people about the firm's immediate future and persuade them that staying put is a good idea. The first step to take is to ensure communication is clear and that workers are kept in the picture about the organisation's position and plans.

After that, you should look at the benefits offered by starting a staff incentive scheme that allows people to earn rewards for doing a good job. This should be relatively straightforward to implement and does not need to be expensive. Workers often appreciate the fact their contribution has been recognised more than the gift itself.

The simplest type of programme involves the ability to earn gift vouchers for high street stores. For something longer term, think about a points-based system that sees cash added to pre-paid cards for major retailers; you can even let each employee choose their incentive from a range of options.

One of the reasons these schemes may appeal to forward-thinking employers is that there are companies that specialise in running them. With the administration handled by a third party, all you need to worry about is what you wish to achieve from the programme.

Employee incentives can be used in a wide variety of ways. The most obvious is to reward people who have hit a particular target, whether it is a certain sales figure or the completion of work on a major order on schedule. You can also adapt the schemes so that they become long-service awards or perhaps an honour for the employee of the month.

However you decide to use the programme, make sure you clearly communicate to all staff what it is for and that they understand it is separate from their salary and benefits package.



Finance articles

  • Top 5 uses for employee incentive schemes

    A well-designed incentive scheme for employees is a good way to motivate staff and help your company move towards its goals. There are a number of different ways they can be used and, if you pick the right ones, you will find such programmes are a cost-effective way to improve performance.

  • Low cost ways to improve employee benefits schemes

    Opportunities to reward your workforce will be in short supply if your company has been hit by the recession. However, there are still some small steps you can take to improve employee benefits packages without putting too much financial strain on the business.

  • Why set up a staff retention scheme?

    Staff retention is an issue all companies have to deal with, as losing key workers is both expensive and disruptive. There are ways to reduce the number of employees who leave and not all of them will break the bank.

  • How should staff reward schemes be organised?

    With money tight in the current tough economic climate, companies are looking at alternatives to pay rises to keep their employees motivated. Among the options to consider are staff reward schemes that demonstrate to workers that they are valued by the business.

  • What do customers look for in a business?

    With many people finding it difficult to manage their finances in the tough economic climate, it is easy to assume that price is the only factor that can help attract the public to your business. However, you may be surprised to discover how important service is to customers.

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