Why You Should Start An Employee Incentive Program
In today’s marketplace, you and your company need to stay competitive. According to the Brookings Institution, 85 percent of a company’s assets are tied up in intangible resources defined as reputation, knowledge, and human talent. Studies have shown that customer satisfaction, organizational performance, and employee engagement go hand-in-hand.
Creating and implementing an employee incentive program help company’s generate positive financial results through their employees. Business improves when employees feel recognized, engaged, and rewarded through organized employee incentive programs with clear goals and proven results. Employee incentives are used to support safety, wellness, years of service, productivity, sales, recognition, goal completion, training, attendance, and loyalty. They can even support team work and comradery amongst employees by creating employee incentives for teams.
Creating and implementing an organized employee incentive program can seem daunting as it can take up a lot of company resources such as time, staff, and money but creating an automated incentive program can take away a lot of pressure and stress. One program, offering auto-generated reports, an easy interface, and total flexibility within the system, is Payback Incentives.
The benefits of creating an organized employee incentive program simply outweigh any costs that are associated with implementing any employee incentive program. It will create a positive and productive workplace while creating more loyal and motivated employees, which leads to a reduced employee turnover rate. With a reduced employee turnover rate it saves the company lots of time and money by not having to go through the hiring and training process with new employees.
If you still don’t believe in the benefits of creating an employee incentive program, here are some stats that might make you think otherwise:
- The Participant Study found that between 40 and 50 percent of an employee’s preferred recognition experience has nothing to do with the physical reward itself. [Source]
- Organizations that provide non-cash rewards such as incentive travel have 3 times higher revenue increases. [Source]
- If selected, implemented, and monitored correctly, incentive programs— with awards in the form of money or tangible awards—increase performance by an average of 22 percent. Team incentives can increase performance by as much as 44 percent. [Source]
Opinions expressed in this article are those of the author and not of The HR Gazette or its team members.