The Value of Incentive Programs to the Organization

 Who does not like being recognized for their efforts and a job well done?  Incentive programs can be used to acknowledge a number of positive behaviors.  That may be a one-time reward for reaching a desired goal or it can be recognition for excellent performance over time.  These programs go a long way when it comes to building a winning team.

There are three standard types of awards that can be utilized.  Performance awards acknowledge the achievement of a goal that had been established and is clearly measurable.  Recognition awards identify team members that have demonstrated actions that are key to the organizations standards and success.  Service awards are generally given to employees to honor their contributions to the organization over time.

The organization benefits from these programs in many areas.  It allows the company an opportunity to recognize the performance and efforts of the team members.  Opportunities are created to improve customer service.  Many incentive programs incorporate a component that drives increases in sales.  An incentive program that is clearly measurable and communicated properly to the employees can also be structured in a manner that encourages teamwork.

A program that is fair to all the participants and provides a clear signal that the organization is willing to share its profits can increase morale among the group.  The ability to earn some extra cash through employee performance incentives also strengthens employee loyalty and retention. 

Improvements in the areas of attendance and safety are also ways that the organization can benefit from employee incentive programs.  No matter what type of incentive program that a company selects is important that it be perceived as fair and the award should be significant enough to generate interest.

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