In the modern world of employee engagement, the smartest businesses are offering employees bonus plans. Whilst it is true money isn't the main motivator for staff, a strong employee incentive plan will motivate your employees and focus them on the KPI's that really matter to the business.
Sounds great, yes? Well the trick is careful planning as a poor incentive plan can have zero or negative impact.
Here are 5 great tips to creating the perfect employee incentive plan:
If you can’t explain it in one minute, the plan is too complex for your employees to aim for. Simple is best. Avoid complex tables and metrics that will simply confuse the matter.
Make sure the employees actually have the ability to impact the results through their personal actions. If they can't impact the results, incentives can be a huge disincentive.
The metrics need to be measurable in a way your employees can understand and agree with. Don't make incentives based on subjective metrics but rather stick to cold hard measurable outcomes that are transparent.
4. Common Goal.
Incentives are a fantastic way to get your team working towards a common goal. Where possible, make incentives across teams or linked people to get everyone rowing in the same direction.
Share the results on a regular basis and reward employees as soon as targets are achieved. When targets are achieved, give instant recognition and when they are not, give feedback and coaching to assist.
Sharing your business success with your employees is a great way to improve your business quickly and pull the team together. Plan and implement well and everyone benefits.