Whether a company is established or is finding new success, it’s crucial to keep up with business trends and focus on innovation in the workplace. Innovation is what keeps a company fresh and ahead of competitors. A recent study has found, however, that many companies struggle when it comes to innovation, and are unsure of how to remedy the situation.
According to a study conducted by the American Institute of CPAs, when asked what is preventing companies from reaching innovation, 41 percent of respondents cited regulatory hurdles, while 34 percent said they lacked budgetary resources that would allow an organization to engage in innovative practices. Others responded that internal practices stopped companies from driving innovation – 30 percent said their organizations have an entrenched aversion to risk, while 27 percent said internal processes and policies stopped innovations. A further 26 percent said their companies lacked a process to implement successful innovation ideas, while 25 percent said their staff lacked creativity and 21 percent said their companies’ managerial staff did not approach innovation with a great enough sense of urgency.
These impediments can stop a company from thriving, and can lead to a disengaged or unmotivated workforce. One of the best ways to promote innovation is through the use of a strong incentive compensation plan. Keep reading to find a few ways incentive compensation management programs can encourage staff to develop innovative ideas.
Promote teamwork
Collaboration is key when it comes to innovation. In sales-based organizations, however, employees often feel pitted against one another and as though they are constantly in direct competition with their colleagues. The right ICM plan can help remedy this, as it can promote teamwork and new ideas among coworkers.
An executive can put workers into groups, separated by department or at random, and set sales goals or other objectives that will help benefit business. A supervisor can set up rewards for bringing in the highest sales for the month, or for creating the best new campaign to draw in customers or new ways to keep current clients around for the long haul. When employees feel they are working for the success of a team, they will work harder to drive in sales in new and innovative ways.
Encourage new ideas
A very basic way to promote internal innovation is to make clear to a staff that new ideas are always welcome. A supervisor can use an incentive compensation plan to motivate workers to come up with new ideas.
When discussing a compensation plan, supervisors can ask employees if they have any new ideas for work projects or thoughts on how to implement a new sales plan. When a worker replies with an idea, a supervisor can offer extra incentives if the employee can successfully carry out an effective program. Or, as part of a monthly sales competition, an executive can tie bonuses or merit increases to new ideas as well as improved sales data.
Prioritize innovation
As the study found, 21 percent of respondents said their organizations lacked the managerial motivation to prioritize innovation – the right incentive compensation plan can change these attitudes and make innovation a companywide priority.
Busy managers and executives often do not have time to constantly think about innovating ways to grow a company, making it easy for these tasks to fall by the wayside. With a strong incentive compensation plan in place, however, executives can show their staff they value innovation and consistently push their staff and themselves toward new, bold ideas that can transform a company.
