Company culture is more important than many managers and executives may think, as companies with a healthy work environment have an easier time retaining top employees and keeping workers motivated. A negative company culture, on the other hand, can be toxic for a business, as employees become increasingly disengaged and feel poorly about their work situation.
Supervisors shouldn’t be surprised when job application numbers drop if an organization has a negative company culture. There are many sites online where current and former employees can review a company on criteria such as salary plans, benefits and work culture – potential candidates often look for these reviews before they even apply.
If a company is struggling to create a positive company culture, it can use incentive compensation plans as a launching pad to improve a work environment. Keep reading to find out how incentive compensation management plans can help a company thrive.
Show employees they are valued
One of the greatest benefits of a successful incentive compensation plan is that the right program will show employees that a company values their hard work. By setting up a program complete with bonuses, merit increases or other rewards, a supervisor can recognize employees for their dedication to a company and ability to bring in higher revenues.
When employees feel they are valued, they are more likely to be happy at work. In this way, ICM plans are effective at improving morale and overall company culture. Positive staffers are a great influence on their coworkers, especially on new hires. Company culture can improve one employee at a time.
Improve workplace relationships
Being able to share experiences with coworkers and trusting one another is another hallmark of a positive company culture. A supervisor can use ICM plans to help foster positive relationships between salespeople and other colleagues by encouraging team members to work with one another.
An executive can promote teamwork by setting up group-based sales competitions, and use an ICM plan to assign rewards to the top earning group. While working together, employees will learn how others work and will become comfortable sharing ideas with their colleagues. Encouraging positive work relationships between coworkers will help contribute to an upbeat work culture.
Increase employee retention
When workers realize that how much they earn is up to them, they will push themselves further and drive sales for a company. Having a sense of freedom in a workplace will improve happiness, and as a result, workers are more likely to stick around at a company.
As any HR professional knows, employee retention is vital to success. Dedicating countless hours to post a job listing, sorting through applications and training new hires is both time consuming and expensive. Creating a work culture in which employees stay on the payroll for years instead of months benefits a company as well as its employees.
Ensure a strong reputation
A company’s reputation is essential to success. Unsatisfied current and former employees often turn to online forums to express their discontent over payment plans and workplace culture. If a company offers incentive compensation plans that help workers thrive, a company’s reputation will rise.
Rather than finding negative company reviews online, when potential applicants search for information on a company, they will be presented with information on effective ICM programs, as well as a positive work environment. Top candidates are more likely to apply for jobs where they know they can earn a living wage and extra compensation as a result of their own positive performance and work in a positive environment.
If a company is looking for a solution to creating an incentive compensation plan that will improve company culture as well as sales numbers, it can use incentive compensation software, which helps companies implement effective ICM plans and track sales performance.
