How to Develop Incentive Plans for Employees
Employee incentive plans provide a goal to motivate staff members within a company or organization. Incentive program rewards are a positive way for an organization to honor or acknowledge employees' efforts or achievements. Developing an incentive plan is as individualized as your staff. Consider what "carrot" motivates employees to excel, and involve staff throughout the entire process to obtain feedback to improve your program.
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Instructions
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Identify a clear set of goals. Meet with managers to create a concrete list of goals that the company must achieve by the end of each quarter and year. For assistance with identifying goals, management should refer to the company's business plan and mission statement.
Determine how employees will collaboratively contribute to the overall corporate goals. Create a list of corporate-wide goals, then ask each department manager to generate a list of department goals that will be introduced to his employees.
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Meet with employees to introduce goals. Review corporate goals during an all-employee meeting and include specific data such as percentage increases and dollar amounts the company should achieve by certain dates. Ask department managers to hold breakout meetings with staff members to review and discuss department goals.
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Survey the employees to determine which incentives are most motivating. Create a list of several incentives---from company or department parties to money and ask employees to rank the incentives, starting with one being the best.
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Design an incentive plan outline that matches goals to incentives using the employee incentive survey. Assign incentives that are possible for all employees to achieve to the corporate-wide goals and individualized incentives to department goals. For example, offering a company-wide dress down day may be an attractive incentive for reaching a corporate goal, however if the employees in a particular department reach a goal, each employee earns a $5 gift card to the local coffee shop.
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Launch the incentive plan during an all-employee party. Discuss how employee input steered the company's goals and incentives so employees feel empowered and enthusiastic about meeting goals. Generate a small handbook or provide handouts that detail the program and incentives.
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Tips & Warnings
Display goal-tracking charts and graphs in common areas or break rooms to remind employees of goals.
Revisit the incentive plan every six months or year to determine if it is effective or should be altered.
Train employees as often as necessary to ensure that they have the necessary knowledge and tools to reach goals.
References
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