The arrival of companies in the structuring of programs or incentive plans is recent as a result of an awareness of the company’s social responsibility and driven by a series of factors, such as the employee’s attitude towards benefits, union demands, labor legislation and social security, competition between companies to maintain or attract human resources, wage contrasts generated indirectly with the market through competition between prices of products and services. Make a visit to power2motivate.co.uk for the best deal now.
The most important objectives of an incentive plan are:
– Reduce staff turnover
– Raise the morale of the workforce
– Strengthen job security
Economic Aspects and Social Aspects of Incentive Plans
The aspects that an incentive plan intends to cover in a public or private company can be economic and non-economic, the former have to do directly with aspects covered with money or its equivalent, the latter with other types of benefits, such as aspects social activities that seek to provide safety and comfort to the worker and his family group, as a means of dedicating all his effort and attention to his work tasks and responsibilities, and correspond to the non-economic benefits contemplated in the incentive plans.
These benefits in turn can be of three types:
Assistance: they seek to provide the employee and his family group a certain degree of security in cases of unforeseen needs.
Recreational: they seek to provide conditions of rest, fun, recreation and mental hygiene to the worker, and in many cases to his family group.
Supplementary: they aim to provide the worker with facilities and comforts to improve their quality of life
In this way, incentive programs seek to motivate the worker with benefits that reward their effort.
The lack of motivation and disinterest of personnel represent a risk for any company, be it a large corporation or a small startup. Productivity falls, the environment is dense and conflicts take over. To avoid this scenario, it is necessary to guarantee a specific incentive that mobilizes the team and promotes growth.
As the forms of incentive can vary considerably, we have gathered some tips so that you can choose the one that best suits the profile of your company and that of your employees. You can also create combinations and insert different techniques, trying to adapt the process to the reception of the team.
Choosing the best incentive technique
Adopting the ideal technique will largely depend on your perception and intuition. There are directors who defend the idea that money is the only way to stimulate the team, while others achieve excellent results without touching the budget.
The idea is simple: link employee performance to compensation. Thus, for example, the one who sells the most receives a higher salary at the end of the month. In general, the commission is stipulated in a percentage of the negotiated value and you can pay it monthly or quarterly. This process is widely used in businesses and among business representatives.