Employee Incentive Programs

Written by Diane Sievert
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Employee incentive programs can work wonders for your company, especially if you've been racking your brain for a way to motivate your employees. Employees who have no desire to advance to a higher position will often do the bare minimum required to earn their salaries. Employee incentive programs offer those hard-to-inspire employees something for which to work.

The Most Common Types of Employee Incentive Programs

Some companies design their own employee incentive programs and the most common type of reward is a monetary bonus of some sort. For example, all employees who make a certain number of sales each month will get a hundred dollar bonus. This is the easiest and most basic kind of incentive program.

A lot of employers will opt for a competitive program because it costs less money. Instead of giving everyone who exceeds their projected goal a bonus, competitive employee incentive programs reward only the top seller or sellers. Sometimes, however, this kind of program can backfire: particularly cutthroat employees will go so far as to sabotage others' work and if one or two employees win repeatedly, the rest will stop trying to beat them.

Another thing to consider is what kind of incentives you want to offer your employees. As discussed above, monetary bonuses are the most common and least complicated form of employee reward. There are, however, all kinds of options available--some businesses reward their employees with fancy gifts, more vacation time, a week in the company condo, etc.

Other businesses choose a select a gift program. Whether it's a one time corporate gift program allowing each employee to select a gift, or an on-going awards program, this option is effective. You'll be able to express "a job well done" while your employees will receive a gift of their choice.


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