Business incentive programs aren't infallible - and when they don't succeed, Power2Motivate's guide on the right types of staff rewards can help fix them.
For many businesses, incentive programs represent a quick fix, an easy way to mend broken fences with disinterested employees or get a quick spike of performance from sales teams. But incentive programs aren't just a band-aid - they are a powerful medicine which can bring your organisation back to full health. And like all powerful medicines, they can even do more harm than good if they aren't deployed or managed in the right way.
Why do incentive programs fail?
An article in the Harvard Business Review from 1993 supported the theory that the mere existence of an incentive program wasn't enough to make the money back in financial results. Misinformation about the power of motivation through rewards is clearly pervasive. An Accenture report on incentive spending among technology companies claimed that as much as 10 percent of channel partner rewards generate insufficient return on investment.
Alongside the risk of wasting money is the failure to actually motivate employees suitably. A 2017 HBR report found that organisation-wide rewards such as profit-related bonuses didn't necessarily lead to an increase in staff engagement.
At the core of all issues with staff incentive programs lie three common mistakes:
Offering uniform incentives for all employees.
Compromising periodic award ceremonies with choices based on personal preferences and not on KPI data.
Using cash as an incentive for short-term gains, irrespective of long-term goals.
So how can enterprise leaders fix their incentive programs?
How you can fix your incentive program
Luckily, there are a few easy ways to fix the issues that arise with incentive programs.
Offer customised incentives for individuals. A key point of motivation for staff is choosing what reward they get. One person may want the chance to travel, another may appreciate vouchers for a live event. The point is, with an array of rewards, employees are empowered to work for your business to achieve their own goals.
Offering rewards based solely on KPI data. This problem is most common with incentive programs such as 'Employee of the Month' awards. This choice is often made subjectively by a manager, resulting in the staff they like being picked regularly. Using an online platform which tracks individuals' performance day-to-day is more effective and ensures the employees who work to their best get rewarded.
Using tiered prizes to point staff to long-term goals. A points-based rewards system which employees can accrue, rather than staff receiving an award with every success, encourages individuals to consider the bigger picture. This choice can also help your business to better align a long term strategy with your incentive program.
Each of these features are present in Power2Motivate's unique rewards and recognition programs.
Working with Power2Motivate
The Power2Motivate team has years of experience in deploying the right incentive programs for its clients. We assist our clients from concept development and researching what their staff want from a rewards program through to implementation and ongoing management through our online platform. No matter the industry, no matter the type of organisation, no two rewards programs should look the same - because no two businesses look the same.
By creating an incentive program tailor-made for the desires of your employees, your enterprise will be fully prepared for whatever 2020 has to offer. To find out more about how we can help, contact the Power2Motivate team today.