Incentive schemes can improve your business by motivating employees! Use these 4 tips to implementing one effectively
Rewarding employees for their 'exceptional' work and achievements has a very clear objective, namely to reinforce the type of behaviour and commitment you want from employees
It may also serve as a motivation tool to some employees in the workplace.
So what's in it for you? Well, motivation can also serve as a powerful tool in ultimately getting what you want out of them, which is what business thrives on.
But do you even know where to start?
Well, implementing an incentive scheme is a good idea, and sticking to the following 4 tips can help you do so effectively:
Tip#1: Only reward for achievement on agreed-upon performance.
In other words, only award incentives if all of the performance objectives, which have been agreed to, are met.
Tip#2: Use a pro-rated, or sliding-scale, policy.
So if the employee only meets some of the objectives, then only award some of the incentive.
· If the achievement for only 8 of the 12 months under review, then only award 8/12 of the incentive; or
· Should the employee's achievement be only, say, 65%, then you should award 65% as an incentive.
You're obliged to do performance reviews. That's why you need an extremely easy to use, highly efficient system.
The first performance review software is now available in South Africa.
This software will help you determine quickly and accurately:
Tip#3: Bad performance should be off-set against good performance.
Your employees' skill levels;
How every employee contributes to the overall business performance;
The training and skill-enhancing requirements for every one of your employees;
How to properly motivate your employees;
The required disciplinary measures.
In other words, if an employee both achieves and makes a mistake, you should not award her for her achievement but also not penalise her for her mistake.
Tip#4: Grant the incentive as close as is possible to the actual achievement of the employee.
Also, try to incentivise employees as frequently as possible. In other words, every month or quarter, if necessary, instead of only at the end of the year.
*Those were 4 tips to follow in implementing an effective incentive scheme. To learn more on incentives and performance rewards, access the Practical Guide to Human Resources Management