Everything You Need to Know About Incentive Programs
It’s a known fact that a working condition ensures that an organization is work-friendly. It also has a lot to do with an increase in the level of performance and productivity.
Unfortunately, a lot of organizations do not recognize their employees for their years of service. Also, many employees do not get compensated for a job well done. These kinds of organizations tend to have two problems. One is that they have trouble with employee retention. Their employees are likely to opt for an organization with better working conditions. Secondly, the employees lack enthusiasm, and that has adverse effects on the level of productivity.
Here, we take a look at everything you need you know about incentive programs. This read Promise to cover:
- Types of incentive programs
- How you can develop incentive programs
- And the benefits of the program
But before we get any further, what are incentive programs?
What are Incentive Programs?
Incentive programs are schemes designed to promote or encourage a said behavior by a group of people (employees or customers) for a certain period. It is also described as utilizing rewards and recognition to inspire a specific behavior by a group of people.
In a nutshell, incentive programs are used to motivate and retain employees/customers.
The scheme does not utilize cash rewards like commissions and compensations that are in the form of cash. And the reason for this is that cash rewards do not have social and emotional values. On the other hand, non-cash rewards are considered an effective motivator of long-term behavioral change.
Types of Incentive Programs
Now that you have a clear understanding of incentive programs. It is paramount to look at some popular incentive programs. Our focus will be on non-cash incentive rewards.
- Incentive Travels: Incentive travels are travel perks used to motivate employees. Employees are invited to travel events like the MICE industry, exhibitions, conferences, or meetings. The incentive often comes with a company’s objective. Often the experiential reward is an award to top performers that surpass goals and objectives set by a company.
- Debit Card and Gift Card Rewards: The advent of e-deliveries has brought about an increase in the use of debit and gift card rewards. Additionally, these incentive options are without any hassle whatsoever. Debit and gift card rewards are efficient and motivate more than cash rewards as they are considered a bonus and not compensation.
- Recognition: The non-cash incentive is yet another effective motivator. It has strong emotional and social values. The truth is we all want to be acknowledged. People recognized by team members and employers tend to be more motivated than the ones hardly recognized. And when employees are motivated, there is an increase in the level of their performance.
- Points-based Merchandise Rewards: Point-based merchandise rewards are one of the most popular incentives. It allows participants to garner and redeem points for rewards. You can employ the incentive program with employees and customers. One of the perks of this incentive is that it gives people the chance to choose their rewards.
The point-based merchandise rewards can be awarded under the following conditions:
- Recurrence in customers purchase
- Excellent performance of an employee
- Increased in the sales level
- Sales of newly launched products
How You Can Develop Incentive Programs
Here are some tips and tricks to develop incentive programs:
- Define your goals and objectives: What are the goals and objectives you need to accomplish in your organization? Is it an increase in the level of sales? Is it customer/employee retention? When you identify your goals and objectives, it serves as metrics used to determine rewards and accomplishment.
- Identify your audience: Now that you have defined goals and objectives. Use it to determine those qualified to participate in the incentive programs.
- Brainstorm ideas with the representative of the participant audience.
- Come up with a budget and program structures.
- Decide on a reward that is consistent with the brand and value of your organization.
Hire SmartWorks for Incentive Travels Programs
It’s no doubt incentive travels strengthens your team building. It also drives your employees to achieve the objectives and goals of your company.
With that said, there are a couple of creative ideas you can infuse into your company’s travel events. You can organize luxury travels, sport travels, cultural tours, adventure travel, to mention a few. Hiring a professional agency like SmartWorks will make this experiential reward a memorable one for your employees.
When you hire us, we provide a complete spectrum of events that covers:
- Staff for all kinds of events(hostess, models, security, and basic hands)
- Venue selection
- Off-site private gala dinner venue, restaurant selection, and management
- Activity creation & management – leisure, cultural, teambuilding
- Catering management
- Transfers & Logistics management
- Latest AV solutions
- Special decoration, design, and entertainment for all venues
- VIP guests & motivational speakers
- Exhibition design & Production
- Housing & Registration