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Your company is considering implementing an incentive program. Are these programs effective in increasing morale and productivity? If so, which types of incentives are the most effective? |
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Answer: |
Incentive programs, when done right, can have a big impact on employee performance and attitude. According to a survey by Maritz Incentives:
- 66 percent of employees feel that an incentive award program either strongly or somewhat affects their future/continued employment at a company. There was a stronger showing from younger employees (74 percent of 18-34 year-olds and 57 percent of 45-54 year-olds).
- 68 percent agree that additional award opportunities would motivate them to be more productive at their jobs. Again, there was a stronger level of agreement from the younger employees (79 percent of 18-34 year-olds and 60 percent of 45-54 year-olds).
While incentive programs can have a big impact on employee productivity and retention, many employees are unhappy with their current programs. The study reports that, of the 1,002 randomly selected employed adults surveyed, 55 percent are not happy with their incentive programs.
Tips for employers. Maritz offers these two tips for creating effective incentive programs:
- Provide more frequent communication. Frequent and effective communication in incentive programs is important to keep employees focused on their goals as well as to reengage them in the program. The best incentive program communications are targeted to the employee base and use different media to make the program fun and a little surprising.
- Provide more varied award choices. A majority of survey respondents preferred a choice of awards in their incentive program over a pre-selected item. This is especially key for companies that are looking to address the generational, lifestyle and individual differences of their employees.
"Understanding and capitalizing on the diversity within your workforce is critical in the 21st century," according to Jane Herod, president of Maritz Incentives. "Building an incentive program that fits your employee base not only maximizes employee performance, but ensures your employees feel good about their company and stay with it."
Source: CCH Employee Benefits Management Newsletter. |
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