Motivated employees are the cornerstone of a successful business. When your people are motivated, they are more willing to perform well; when they are contented, they tend to be more dedicated and enthusiastic. In the long run, motivated employees also tend to be more loyal, which leads to lower employee attrition rates and therefore lower costs for acquisition and training of new people.
One way to keep employees motivated is to reward superior performance with the right incentives. All around the world, employee incentive programs are among the most common techniques in ensuring employee motivation. These programs also encourage productivity and reinforces positive behavior in and out of the office.
However, there are several challenges in using incentives compensation to reward your employees. Among them are the complexity of determining the budget, setting targets for individual and group performances, calculating the actual amount of the incentives without going over-budget, and giving these incentives on schedule. Using a software for sales compensation management will help ease these burdens and even assist in other aspects of the business including people management and employee retention.
What Do They Want?
There is no cookie cutter method in rewarding your employees. You may think that monetary rewards will work well for everyone, but sometimes, there are employees who prefer other kinds of incentives. Some may like tangible items like the latest gadgets, while others may like travel incentives or even learning opportunities.
Some employees also want less physical incentives and motivators. Alternatives can include more independence at work, advancement opportunities, recognition, and even the chance to lead projects, to innovate, or to improve a system.
The only sure way to know what would motivate an employee is to discuss incentive options individually so that the employer or manager and the employee can agree on a well-rounded incentives plan.
Setting Goals and Getting Rewards
Once you’ve agreed upon an incentives compensation plan, it’s time to determine when and how these incentives will be awarded. The employee and their direct supervisors should sit down and discuss both personal and company-set objectives (remember S.M.A.R.T. goal setting?), which can have their unique incentives equivalent.
Depending on what both sides agree on, there are plenty of ways to award the incentives once goals are met. Tiered models, where bigger incentives are awarded for meeting bigger goals, can help drive employees to perform well beyond expectations. Managers can also follow a monthly schedule of incentives for an instant gratification approach. The critical thing here is to ensure that what is promised is delivered on time.
Using a software for compensation management also helps in managing these aspects, most especially in the financial end. It’s important to give your employees their due, but it’s even more important that you also keep track of your company’s finances.
In the end, incentivizing good performance is beneficial for both the company and its people. There is nothing more uninspiring for an employee than not being compensated well for their stellar work. As Sir Richard Branson said, “If the person who works at your company is not appreciated, they are not going to do things with a smile.” Happy employees will be more than willing to deliver quality work, and one way to keep employees happy is through a healthy incentives compensation program.