<ul><li><b>Goals and objectives should be clearly defined for staffers.</b></li><li><b>Workload should be equitably distributed</b> to avoid resentment from staffers who feel they have to carry poor-performing team members. </li><li><b>Consider both individual and group incentives</b> to promote the concepts of solo effort and teamwork.</li></ul>

Incentive Program Essentials

<ul><li><b>Motivational Tool</b>: Incentive programs motivate employees to be more productive and consequentially increase the company’s earnings.</li><li><b>Promoting Teamwork: </b>members of teams that earn bonus according to collective productivity may support and encourage each other to perform at top levels. </li><li><b>Morale Boosters</b>: if employees see a direct correlation between effort and earnings morale and job satisfaction increases while turnover and absenteeism decreases.</li><li><b>Service Levels</b>: employees competing for or striving to meet the goals of an incentive plan may provide higher degrees of service to your customers. </li></ul>

Effects Of Incentives On Business

<figure><img src="https://img-aws.ehowcdn.com/340x221p/photos.demandstudios.com/getty/article/45/120/stk134499rke.jpg" alt="Incentive plans can make employees feel part of the company's strategic process." title="Stockbyte/Stockbyte/Getty Images" width="205" height="220"></figure><p>Incentive plans are formalized approaches to offering recognition and reward to employees for meeting pre-established goals or objectives. Incentives may include cash bonuses, profit sharing, additional paid vacation time or any range of prizes such as gift cards, corporate merchandise or other products or services. To be effective, incentives must be clearly defined and considered a viable, valuable reward for the associated workload.</p><h2>Motivational Tool</h2><p>Incentive programs motivate employees to push and challenge themselves to achieve higher degrees of productivity. This ultimately translates to increased earnings for your company. When incentive plans are in place, employees recognize that significant effort on their behalf will be acknowledged and rewarded. This can increase the amount of time, effort and energy a staffer is willing to put forth on your company’s behalf.</p><h2>Promoting Teamwork</h2><p>Incentive plans tied to teamwork or group initiatives can help promote collaborative work efforts in your business. Staffers working in teams that collectively rely on each others' productivity for the group to receive a bonus or award may support and encourage each other to perform at top levels. Peer pressure may also encourage additional degrees of performance from underperforming staffers who don't want to let their team members down.</p><h2>Morale Boosters</h2><p>Incentive plans have the potential to raise morale and increase job satisfaction in a company. Employees see a direct correlation between their work effort and their earning potential. Higher workplace morale can decrease turnover, which saves your company money associated with recruiting, hiring and training new staffers. Additionally, staffers with high levels of job satisfaction often exhibit lower degrees of absenteeism, which can also help improve a company's bottom line.</p><h2>Service Levels</h2><p>Employees competing for or striving to meet the goals of an incentive plan may provide higher degrees of service to your customers. This can encourage repeat business, improve customer satisfaction and enhance your company's reputation. Improved service levels can also encourage referral business as well as positive word-of-mouth advertising.</p><h2>Incentive Program Essentials</h2><p>For an incentive program to be effective, goals and objectives should be clearly defined for staffers. Workload should also be equitably distributed, or it could create resentment if staffers feel they have to carry slow or poor-performing team members. Consider both individual and group incentives to promote the concepts of solo effort and teamwork.</p>

Incentive plans are formalized approaches to offering recognition and reward to employees for meeting pre-established goals or objectives. Incentives may include cash bonuses, profit sharing, additional paid vacation time or any range of prizes such as gift cards, corporate merchandise or other products or services. ...

Bite-sized knowledge
to upgrade
your career

Importance of Incentive Plans | Chron.com

Incentive Program Essentials

Effects Of Incentives On Business

IDEAS ABOUT

MORE LIKE THIS

The Importance of Positive Relationships in the Workplace

Manage Your Emotional Culture

Tips on How to be Happy at Work

It's time to

READ

LIKE

A PRO!

Bite-sized knowledgeto upgradeyour career

Importance of Incentive Plans | Chron.com

Incentive Program Essentials

Effects Of Incentives On Business

IDEAS ABOUT

MORE LIKE THIS

The Importance of Positive Relationships in the Workplace

Manage Your Emotional Culture

Tips on How to be Happy at Work

It's time to

READ

LIKE

A PRO!

Bite-sized knowledge
to upgrade
your career