Top 5 uses for employee incentive schemes

Thursday, 05 July 2012 04:33

Incentive schemes can help to improve performance

Incentive schemes can help to improve performance

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.

You do not need to spend a huge amount on your incentive scheme, as it is usually the fact their efforts have been recognised, rather than the prize itself, that pleases staff. Depending on what you aim to achieve from the programme, it is possible to use gift vouchers or even some kind of salary replacement for rewards.

Sales

Sales executives expect to be part of a commission or bonus scheme, but they are not the only employees who contribute to bringing in business. It is well worth looking at some kind of incentive for the support staff in the sales department, anyone who works on the shop floor in a retail environment and those who deal with customer complaints, as their performance also helps to drive sales.

Client retention

All companies understand the importance of securing new business, but many fail to do enough to keep hold of their existing customers. Offering incentives to staff who are directly involved in dealing with clients can help to keep them focused on what needs to be done to retain those contracts.

Production targets

While it is often straightforward to come up with ideas to keep customer-facing staff motivated, it is not always so easy when it comes to people like production and distribution workers. Offering team rewards for hitting certain manufacturing targets and completing orders on time and within budget can help to keep things running smoothly and ensure those employees know their contribution is appreciated by the firm.

Savings schemes

Not all incentives have to be target driven, some of them can just be helpful for staff members. One good idea is to run a Christmas savings scheme, which will allow them to budget for the most expensive time of the year and give them a bonus on the money saved. While the company will not receive a direct financial benefit from this, it will help to keep workers motivated and improve employer-employee relations.

Staff retention

Recruiting and training good staff is expensive, so it makes sense to put some effort into keeping hold of your experienced workers. One option is to offer rewards to people who stay with the company for a certain period of time. You could use cash, additional holiday entitlement or some kind of gift for this, as long as you follow the relevant HM Revenue & Customs regulations.
 

 

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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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