Financial incentives for employees can motivate and create a sense of Team!
Attracting and retaining high quality talent can be challenging, but with upfront planning and insight it will not only save you money, but will positively impact your bottom line and address what can often be chronic problem in a company or organization. There are various ways to effectively motivate employees, but one plan to consider is creating a Performance Incentive Plan. Businesses of any size can utilize incentive plans to reward employees’ exceptional performance. This can be created at the global level, motivating all employees to perform better and reward them when company’s net profits are increased. Or, you can create clear objectives for each individual employee, and compensate them when these objectives are met or exceeded. A good incentive plan must be directly related to a measurable performance beyond the norm.
Performance incentive plans can be an important part of any compensation plan. Incentive pay shows appreciation and creates a sense of enthusiasm for the company’s well-being that a straight salary, no matter how large, can’t convey. A well-designed incentive-pay plan can also help rally the troops, point them in the direction you want them to go, and give that extra push that every company needs in today’s competitive environment.
Performance incentive plans are a good investment for any size company. Hoosier Bank did a survey among financial institutions and compared those institutions which have incentive compensation plans to those that operate without. They found significant differences in profitability, as well as turnover. Interestingly, those institutions not offering incentives appear to be paying more for employees as evidenced by higher average salary and benefits per employee.