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Monica Roddy
HR is Key to Culture

Boost Employee Morale and Performance with an Employee Incentive Program

Benefits and Compensation > Employee Benefits

By: Monica Roddy | Tuesday, April 28, 2009
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Well-developed employee incentive programs can be a tremendous asset to an organization. Employers want loyal and hardworking employees. Most employees want to be considered as hardworking, but in addition to their paychecks, they usually need some recognition. 

Many employers ask me, “How can I motivate my employees in effective ways that will work, yet will not cost a lot of money?”  

I answer by first explaining that basically most people want to feel recognized, appreciated and valued. When employers have an understanding of those basic human needs, they can then develop an employee incentive program that will usually result in: 

  1. improved employee morale;
  2. higher productivity levels and
  3. increased organizational performance. 

And what’s more, particularly for small to medium-sized businesses trying to compete, an effective employee incentive program doesn’t have to cost a lot in terms of dollars and cents. 

Get to know and understand your employees first.

So generally employers want to figure out ways to notice when employees are doing a good job. After which, they want to follow up in ways that recognize and reinforce those behaviors. I specifically recommend that employers take into account the following steps or considerations: 

  1. Get to know your employees. This is an important initiative because you will gain a better understanding of what works for them.
  2. Avoid developing one-sided incentive programs. What this means is, employers should not gear incentives toward only one group, or toward a few individual groups or departments, etc.
  3. Expect to tailor your program so that you can motivate a variety of employee behaviors. There is not a one-size-fits-all type of incentive program. For instance, one employee may be motivated by an outing of some sort; whereas, another employee might be more inspired by a gift card. Then, you may have some employees who will produce even more if they see an extra paid-day-off on the horizon. 

Set expectations and goals, then communicate with and involve your employees.

After discussing the above three points with the employer, I then review the communications process with them and explain how important it is to be clear about setting expectations and goals. It is also important to make those goals attainable, or your program could result in unintended consequences. In other words, you want to make sure your employees remain motivated, rather than become demoralized because stated goals could not possibly be reached. 

Good communication always works both ways. For this reason, I encourage employment involvement in the incentive program. For example, employers might give employees an opportunity to vote on what incentives they want to include. Obviously you can reserve the right to negotiate alternative suggestions, should any of their ideas be out of the question. You might be surprised, also, to learn that oftentimes suggestions are not centered on monetary rewards. 

As mentioned, most employees want to be considered as hardworking and productive. With a little care, thought and planning, I’ve seen employers boost employee morale and productivity with a well-developed employee incentive program. Remember, when you recognize your employees, they usually will take greater interest in helping you achieve higher customer satisfaction and help you increase organizational performance levels!

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