A great company incentive program is beneficial for several reasons. Existing employees feel seen and appreciated, and new employees feel excited to work for you. But like any company program, there are pros and cons. If corporate incentives aren’t rolled out properly or executed with care, the rewards can ignite jealousy rather than a sense of value. This can sow discord and result in lowered performance and higher turnover. Walk the line between benefit and detriment by consulting our guide to the do’s and don’ts of corporate incentives.
Corporate Incentives: Do’s
When creating and executing a corporate incentive program, one of the first things you should consider is a way to maintain fairness and equity. Some simple ways to do this are by clearly communicating the incentive program along with the indicators that deserve rewarding. This could include daily, weekly, or monthly metrics as well as company milestones. Other do’s include the following:
- Know your workforce. Consider your team’s age, location, and interests.
- Ensure your metrics are realistic and measurable.
- Let your workforce choose incentives that mean something to them.
- Reward your team frequently to hold motivation.
- Create rewards based on input from peers in addition to performance.
Corporate Incentives: Don’ts
If you aren’t careful, your incentives can be unfair, divisive, and impossible for employees to reach. Some of the most important things to avoid when creating a corporate incentive program are:
- Budget. Don’t start an incentive program you can’t afford to continue over time.
- Limited Options. Not everyone is interested in the same thing. Give your team choices and allow them to choose a reward that’s valuable to them.
- Limited Variety. If your rewards are individually based, this could create a culture in which every person is out for themselves. As a result, this could destroy a team-oriented culture. Consider adding group incentives, too.
- Mystery. People aren’t always keen on improving their performance or working harder towards a goal when they don’t know their reward. Be clear about the incentives you’re offering.
Once you’ve decided to create an incentive program and considered the do’s and don’ts of corporate incentives, you’ll need a way to manage your rewards. Employee reward program software is a great place to start.