Making sure that employees are productive and committed to the company and its goals is crucial to the success of any business. Employee incentives provide a way in which employers can retain the interest of their staff, encourage high performance and improve morale, all which positively contribute to their productivity.
Incentives are based on the employees' performance, and they can be given out at any time. They can be tangible as well as intangible, with or without cash value. Rewards, awards and other forms of recognition are all part of incentives. To be effective, incentives need to be based on what interest employees, they should encourage a particular behavior, be based on a period and be part of other strategies of motivating employees. Some of the commonly used incentive programs include;
Flexi hours. Allowing employees especially those trying to juggle work and family flexible hours can be one of the ways of enticing them and promoting productivity. The flexi hours can be a reward to employees who has remarkable performance. An employee can decide when they report to work and when to leave provided they meet their goals or work a particular number of hours.
Telecommuting. If an employee can work from home, then it can be a good incentive as long as an employee meets a set target.
Earning points. An employer can reward good behavior using points. The points earned can then be redeemed for items, cash or gift cards. This encourages employees to earn more points.
No dress code. Not many employees like the dress code. Getting rid of it can be an incentive that ensures employees retain the morale to work in the company. It gives employees freedom and also shows them your trust that they will make the right choice in dressing.
Off days. This comprises giving employees a day(s) off if they meet particular targets. The days could be converted to cash if they have not been used up by the year end.
Percentage revenues and shareholding. Employees can have a share of the company profits. This motivates them to increase productivity since the more the profits, the higher is the share. Some companies even sell shares to employees.
Payment for tuition. An employer can help with the career growth of employees by paying for their education or reimbursing the funds. While the knowledge they gain can contribute to improving productivity, the employees also maintain their loyalty to the company as they perform better.
Discounts. A company can give high-performing employees access to discounts such as on movie tickets, fitness centers, and cell phones.