Tips on How to Create Effective Employee Incentive Programs

If you wish for your business to generate more profit than usual, you need to work on creating two types of incentive programs: one for your employees and another for your customers.

COMMUNICATE – Use all the ways possible to know how your employees feel. Have them fill out evaluation forms, and encourage them to voice out their opinions. Make it a point to know them personally so that you’ll also be able to read between the lines.

EXTERNAL AND INTRINSIC MOTIVATION – Both are important if you wish to properly motivate your employees. It’s impossible for one to stand without the other. External motivation can be provided by giving away cash and other similar incentives like travel packages and gift checks. Intrinsic motivation can be provided by establishing company loyalty, aligning their goals with that of the company, and giving them sincere compliments when they do something exceptionally well. A simple pat on the back can do wonders to a person’s self-esteem.

MONITOR, MONITOR, MONITOR – Changes in an employee’s preferences may differ due to changes in the economy. Priorities may differ because of a change in lifestyle. Thus, it’s important to constantly monitor and evaluate the effectiveness of your program.

SHORT TERM VERSUS LONG TERM BENEFITS – Be aware of which incentives would work better for motivating people to achieve short term goals and which ones would work for long-term goals.

GIVE REWARDS INSTANTLY – If an employee does something well, give him the reward he deserves immediately. Don’t delay because your employees might think you’re begrudging them of the reward they deserve.