Employee incentives program ideas
Tips to Building a Great Incentive Compensation Plan
A company takes a great step toward success when it decides to implement an incentive compensation management plan. ICM plans motivate business professionals to sell more products, improve behavior and focus on increasing revenues. Employee incentives programs have proven time and again to bring out the best in any company, which is why they are so popular among all sorts of organizations, particularly those that are sales-driven.
If a company has decided to revise or begin an employee incentives program, it’s important to tailor it so that objectives are being addressed through incentive planning, as well as gain insight into performance management best practices. Keep reading to find five tips on how to design the right employee compensation plan.
Create a plan that aligns with company goals
Before setting out to put a plan in place, consider the goals of the company. A common mission of any sales-based company is to bring in higher revenues and increase employee retention. Map out a way to motivate employees to help a business achieve these goals.
For example, a company can financially incentivize staff for not only increased sales, but also for proven quarterly client retention. This will encourage workers to focus on customer service as well as driving sales. It also rewards a wider array of employees – some have a special knack for keeping customers happy, and shouldn’t be ignored just because they aren’t the top salesperson at the company.
Conduct business analytics
Having accurate numbers on sales and performance behavior is a huge benefit for a company. Rather than relying on spreadsheets that are prone to error and take up precious time to fill out each day, a company can use business analytics software to carry out the process.
These software products delve through countless lines of raw data that have been gathered over months or years, and carries out an in-depth analysis. When the analysis has been completed, a VP of sales and other company decision-makers will be able to see individual performances, quarterly company progress and industry trends, presented in easy-to-understand graphs and charts. Visual representations of company performance will help an executive decide where to focus in building reputation and skills.
These results will also point to star workers who may be able to transition into leadership roles, as well as those who may need more guidance to improve sales.
Focus on both long- and short-term goals
Aligning sales goals with company objectives is important for long-term goals, but in order to get to an ideal place where team members are consistently working within these parameters, it’s essential to focus on short-term achievements as well.
Rather than only implementing incentive compensation rewards for meeting sales goals, try instating regular monthly or weekly competitions to keep employees working hard each and every day. Don’t overwhelm staff with constant competitions, which can lead to burnout or animosity among colleagues, but evenly-spaced, regular sales events will encourage top performance across the board.
Communicate
When kicking off a new plan, it’s important for supervisors to explain to workers exactly what will be happening to their compensation program, and provide employee incentive examples. A VP of sales should hold a company-wide meeting with workers to clearly run through changes, and invite questions and comments from attendees.
No matter how brilliant the plan, some people are bound to resist the changes – it’s important to keep the lines of communication open so staff will feel they are being heard.
Monitor the plan
Once a plan has been put in place, it’s vital to keep a watchful eye on progress being made. Use incentive compensation software to track employee performance and to see how the ICM plan is improving company performance. It may be wise to tweak the plan periodically to bring out the best results.
Best Employee Incentive Programs
Employee rewards are an essential component of an effective engagement strategy, but many leaders still struggle to implement rewards successfully. Aligning the rewards you provide with the things your team truly values will make a big difference in how they’re received.
If that seems like a challenge, don’t worry — we’ve got you covered with a huge list of creative reward ideas for your staff. The list was so popular, we updated and expanded it for 2016.
Employee rewards don’t have to be large or costly; in many cases, small rewards are equally effective because they can be given more frequently — and frequency is a crucial element of a successful rewards program. Creativity, not cost, is the real key to building a great set of employee rewards everyone will be excited to earn.
Creativity not your core competency? Don’t worry.
To help oil the gears, we put together a list of employee reward ideas, organized by category to make it easy to find the perfect option. Think of this as a jumping-off point to developing your own outstanding catalog of creative employee rewards.
Company Specific
What are rewards that only you, your company, can give to your employees? These are some of the most unique rewards that you can provide, as it is tailored around your workplace.
Company Branded Gear:
Make sure these things are cool or useful so that employees will want them and they are well-received. It doesn’t take a huge mental leap to equate the value of a reward, with the value of the individual employee contribution. This type of reward is most-effective when the item is tasteful, useful, and of the highest-quality possible. If you’re not sure what items you should be considering as part of your incentive program, poll your team and pick from the most popular suggestions.
Bring Your Pet to Work:
If your building permits, pets at work can be a great way to improve morale across the entire organization. Before rolling out a reward like this though, check with everyone. Not everyone is keen on sharing their work space with pets.
Professional Development
Most employees would like to get better at what they do. Professional development is beneficial for both employees and the company.
Conferences:
These can be expensive to attend, but often they’re fun, and a great place to discover the latest best-practices, and build valuable business relationships. Covering the cost of a conference trip can be a great reward for the employees who have shown extra initiative and/or interest.
Local Favorites
There are some rewards that you can provide to your team that are only available in your location. These are great rewards to offer because they are unique, and often favorites of your employees.
Local Attractions:
It doesn’t matter where you’re located – there will always be local attractions. Maybe there’s a great restaurant down the street, a golf course, or a boat ride. Take full advantage of the unique things your area has to offer.
Time Off
Time is a person’s most valuable resource, and it’s the only thing that you can never get back. Even if you absolutely love your job, a little extra time to yourself is always welcome.
Long Lunch:
A long, relaxed lunch can set a zen-like tone for the rest of the day, even when the extra time spent is relatively small.
Early Release:
Think back to your school days, and remember the excitement of “early-release day”. This is well-received especially when the weather is great, and an extra hour or two can feel like a half-day off. This often allows enough time for activities you’d otherwise miss out on.
Extra PTO Hours:
This reward gives employees the autonomy to save up extra hours of PTO for a half, or even a full day or more.
Cash-Equivalent
Sometimes the easiest way to pick the right reward for your employees, it to let them choose it themselves.
Charitable Giving:
Some of your employees are likely making charitable donations already. You can assist them to amplify the impact they’re making by giving them an option to make charitable donations as a reward for great work on the job.
Team-Building
Rewards don’t have to be given on an individual basis. There are a variety of rewards you can offer to help inspire stronger bonds between coworkers, which is valuable for both them and the organization.
Happy Hour:
Happy hours are a great way to get everyone together outside of the office in a more relaxed setting. The real goal here is provide entertainment that gives everyone an opportunity to relax.
Health and Wellness
Healthy employees are often more productive, according to research shared by the CDC. Offering rewards that can improve employee health can benefit everyone.
Gym Memberships:
A gym membership is a great way to help employees maintain their physical health, especially during the colder months when it’s more difficult to be active outside.
Start thinking about your own creative ways to reward and incent your employees with things they will genuinely value. Increase performance with exciting employee incentive programs.
