What are Incentive Programs?
Incentive Programs are programs used by an organization for motivation and betterment of their employees. These programs are typically developed by a company on its own initiative. Their features and benefits are dependent upon management decisions. Organizations with such programs seem to have happier and more efficient employees.
Suggestions for Incentive Programs
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Some startups have stock option plans for all employees. For example, after Walmart’s IPO, there were janitors who became millionaires. Some new divisions of larger companies create “shadow stock” to create a pseudo stock option plan for senior executives.
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Many startups and more established companies have MBO programs that provide quarterly or annual bonuses based on performance against objectives.
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One type of Incentive Program provides rewards for a particular success by an employee or well defined team. The reward might be shares of stock or cash. A reward makes them feel more obliged to the organization. This is a real benefit, where employees feel attached to the place where they work.
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One strategy is to keep an Incentive Program secret until it is announced. That approach assumes that employees will appreciate a pleasant surprise.
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In some cases gifts will motivate employees more than cash or stock. Some employees prefer surprise gifts more than financial incentive. So, whenever there is an increase in sales or a breakthrough in profit, management might reward every employee of the organization or of a particular department. Personalized certificates or mementos are warmly welcomed by employees.
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In more established organizations it is seen that new candidates are more attracted towards organizations with perks and benefits. Good pension schemes, health schemes, travel allowance, all provide security to the employee and their family.
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Many companies; perhaps especially well-funded startups provide some facilities for entertainment or day care inside the office building.
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Arranging programs such as sports tournaments or festivals inside the organization, for the employees and their families, also enhances the relationship between the employees and the organization.
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Benefits such as company cars, maternity or paternity leave, education of the employee or his/her children, discount coupons for shopping or dining, etc. also enhance employee satisfaction and loyalty. These systems are also helpful in attracting new employees.
References
- Creating Incentive Plans That Actually Incent Employees
- Survey Shows Continued Importance of Incentive Plans
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