In addition to medical benefits, 401K plans, wellness programs and educational assistance plans, many employers are offering additional incentives to keep employees engaged and focused on the company’s goals. In fact, more than half of the companies in the U.S. have an employee incentive plan. Some of the benefits of implementing an incentive program include:
- Increased motivation
- Higher morale
- Increased company loyalty
- Improved employee engagement
- Better productivity
- Reduced sick leave
- Reduced attrition rates
- Increased team work
Your incentive plan should help drive the behaviors you are looking for from employees. Thanking employees through a reward system can be motivating and can add so much value – and it doesn’t require huge budget, either. Recognize them for specific accomplishments, performance on a specific project, or for contributing to overall company goals. Many businesses find that the improved morale, retention and productivity are more than worth the financial investment in an employee incentive plan.
If you’re considering implementing an incentive plan, first think about your workforce. Do they have measurable goals that you could incentivize? The most well received incentive plans are those that have measurable goals, give everyone an equal chance to be rewarded, and encourage teamwork.
Consider these plan options:
- Lump sum bonuses
- Points program
- Management incentives
- Gift cards or other small rewards
- Non-cash incentives, such as an employee of the week or month
- Flex time or telecommuting
- Project-specific or production-based bonuses
- Extra vacation time
- Equity ownership or stock investment options
- Self nominating or peer nominating recognition
Including employees in selecting the type of incentive plan you will implement can be very helpful in getting their buy-in. Surveying employees or forming an employee task force can be a great way to get their input and make sure that the plan is really motivating for your employees. This incentive team can also work with management to determine fair criteria for the plan.
No matter what type of plan you move forward with, you’ll experience excitement and motivation from your employees – and who doesn’t want to increase employee engagement and satisfaction?
Need help putting together an incentive plan for your team? Contact the Avontis Group at 302.504.9937.