Determining the most effective ways to use employee incentives is no easy task. To achieve the maximum impact on performance of your program while keeping it meaningful to the participants requires skill, strategy and systematic trial and error. It requires
a combination of both behavioral science and pure economics.
To better understand how to get the most out of your incentive program,
we've compiled a list of ideas to make them more effective. A well-designed incentive program has a clearly defined goal, establishes rules, makes rewards visible, focuses on commitment to goals, embraces competition and leverages risk, among other
aspects. Following, we further explain the top ways to make incentives more effective.
Consider the Desired Outcome
With incentives, you have to be very clear about what it is you want people to be able to do or accomplish. Clearly spell out the details of exactly what it is that participants should do to meet goals so that there are no questions. People will always
try to "play" or skew the incentive game if results are ill defined.
Check in Frequently
If individuals do not believe the incentive program's goals are realistic or that they are personally far from being able to come out on top at the end of the program, they are less likely to be motivated to participate. Thus, it would benefit the incentive
planner to both incorporate input from the participants about the design of the program being offered. Throughout a program, consider:
- Checking in with employees to gauge their satisfaction with the program.
- Keeping participants updated on how the program is performing.
Make Results Visible
When using monetary incentives remember that the money-board, so to speak, really depends upon a great deal of visibility. Think about national lotteries and the power behind those dollar amounts. Present your reward as another badge of honor to hold
up. At the end of the program, don't forget to communicate the results with all participants. Share how the program impacted company performance and celebrate both individual and team achievements.
Support from top management and program organizers is critical, so make sure company leaders are involved in presentations. If you have remote workers, consider web events or other ways in which to involve all participants in the celebration.
Focus on Commitment
For an incentive program to have any drive and purpose to it, the target goal and reward must be meaningful and motivational to the majority of individuals involved. Strive for a collaborative process where possible in defining performance goals so
full commitment is gained. As previously mentioned, be sure to get participant input when possible during the design process so that the goals and thus, commitments, are equally distributed.
Make Programs Competitive
Interactive aspects of peer pressure and competition are vital elements with designing incentive programs that achieve success. You need to ensure performance targets are challenging enough and that the incentives offered are desired by the majority
of participants.
Reward Multiple Levels of Performance
Consider multiple levels of incentives for various levels of performance. A higher the goal level requires a higher level of reward. Also ensure clear communication is delivered about what
the minimum performance must be.
Roy Saunderson is the author of Practicing Recognition.