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.
 

 

Comments

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.

View More Articles

Related stories

Are zero-hour contracts unfair or part of a flexible workforce?

New research suggest 19% of firms hire people on a zero-hours contract

New research by the Chartered Institute of Personnel and Development suggests the number of people employed on zero-hours contracts could be four times higher than official figures suggest.

Forward Guidance: How will it affect savers and investors?

Mark Carney, the new Governor of the Bank of England

Pete Comley, author of 'The Plan To Deal With The Debts' gives his insight into the new central bank policy of forward guidance on interest rates and what it means for your money.

Bank of England adopts forward guidance on interest rates

Mark Carney announced that the Bank of England will link base with unemployment

The Bank of England has announced that it will adopt a policy of forward guidance by linking interest rates to unemployment and that rates will not rise until the jobless rate falls to 7.0%.

Weale objects to early inflation risk on forward guidance

Martin Weale voted against adopting forward guidance on interest rates

The Bank of England's Monetary Policy Committee voted unanimously to keep interest rates at 0.50% and QE at £375bn but Martin Weale voted against adopting forward guidance on interest rates citing inflation risks.

Student Finances: The top five student bank accounts for 2013

Managing your money as a student helps reduce your student debts

A-level results arrived this week and thousands of students are set to start university next month. Find out what are the best student bank accounts and how to manage your money.

Job vacancies rise as demand for skilled staff surges

Job vacancies are on the rise, according to a new report

A new report shows that demand for both permanent and temporary staff is at its highest level for more than two years and starting salaries are also on the rise.

RBS orders lending review on untapped £20bn to support SME's

RBS is to undertake a review of small business lending

The Royal Bank of Scotland says it is to undertake an investigation into small business lending and will use £20 billion in untapped funds to support business lending.

Zero-hours contracts used mainly for lower paid workers

The majority of workers employed on zero-hours contracts are young

New research has found that is it mainly lower paid workers who are on zero-hours contracts as employers take advantage of the flexibility they give.

Newsletter sign up

Interests

In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: