For a client to execute the creation of an effective and profitable program, features must be customized to the participants’ interests. A successful incentive program requires clearly defined rules, appropriate rewards, efficient communications, and a method of measuring the success rate.
Receiving a sufficient return on investment requires the full participation of the program’s employees. Incentive programs are based upon the concept that performance effort increases as people perceive themselves progressing towards their specific goal. In order to properly motivate, programs must be designed to offer a broad selection of products and services based on their interests and needs.
To create an effective program organizations must keep their objective in mind when considering program design and implementation. Objectives should be based on the organizations goals and should be specific so participants clearly understand the expectations. Programs should be challenging, yet achievable. If objectives are viewed as unattainable the program will be destined for failure. Objectives may include motivating employees, recognizing performance, or reinforcing a company’s safety record.
Points Program – A points-based incentive program is where a participant collects and redeems points for awards. Depending on the program type and the organizational objectives points can be awarded on a number of different criteria. Points programs are a tools used by organizations to motivate their employees and their customers over time, while improving the organizations’ overall performance.
Employee – Employee incentive programs are used to increase overall employee performance. Employee programs are often used to reduce turnover, boost morale, improve employee wellness and reinforce desired behaviors (such as use of safety equipment and serving customers politely).
Sales – Sales incentive programs are used to motivate salespeople. These programs are primarily used to drive sales, reduce selling costs, increase profitability and spur new business development.
Non-Cash Rewards – Merchandise and other non-cash rewards are often perceived as separate from compensation. Accordingly, non-cash rewards tend to stand out as rewards for performance. Highly desirable brand name merchandise and other non-cash rewards have high trophy value, bringing greater recognition to the recipient at the time of the award and possessing a long-term lasting effect.
Cash – Cash is often a poor motivator due to its lack of trophy value. Additionally, cash is quickly forgotten as many participants tend to spend it on everyday items or use it to pay bills. Given that most people don’t generally talk about cash awards, cash programs do little to generate the interest required to create an effective incentive program.