Taking a Closer Look at Employee Incentive Programs

Taking a Closer Look at Employee Incentive Programs

Posted by AA on 27th Oct 2018

There’s a lot of confusion over employee incentive programs and whether or not they are useful in the workplace. While some industries rely on their use as a tool to encourage employees to work harder, other industries avoid their use altogether. But what exactly are employee incentive programs? And how do they work? These are all common questions workers have, and here we’re going to take a closer look into into them.

The Basics of Employee Incentive Programs

The truth is that an employee incentive program can refer to a wide variety of different programs. In short, it’s a reward system set up to motivate and encourage workers to strive for excellence. No matter what type of business it is, employees want to know all of their hard work isn’t going unnoticed, and that’s the primary function of an employee incentive program. When workers are given recognition and incentives for everything they’ve accomplished, they will continue to push themselves towards forwarding the goals of the company.

Common Types of Employee Incentive Program

It’s important to note that there are countless different types of employee incentive programs. Small companies might offer their employees a free lunch or additional time off, while large companies may reward their employees with stock bonuses. If the program offers some form of reward to workers for their achievement, then it falls under the category of an employee incentive program.

There’s no denying the fact that monetary bonuses are a nice incentive, but unfortunately some companies might not be able to afford them. Handing out free stocks and/or bonus paychecks can easy burn a hole in your company’s bank account. When margins are the key to success, these handouts might be the downfall of your company. So, how are you supposed to offer employees incentives to work harder without eating through your budget? One of the easiest and most cost-effective forms of incentive programs are trophies and plaque awards. You can have them personalized with the recipient’s name engraved directly on it, which gives it a more personal feel.

Purchasing trophies and plaque rewards as a form of employee incentive is a most cost-effective approach. Just remember to take the time to personalize each and every reward with the recipients’ name; otherwise, it will feel like a general achievement with no real relationship. The couple additional minutes it takes to find out the recipients’ names will go a long ways in the overall efficiency of your employee incentive program.