Retaining talent with incentive programs

by: Nichole Gunn June 25, 2010

Even though the economy and the job market are slowly recovering, companies are still facing cut backs and tight budgets.

Employers are becoming increasingly worried that as more employment opportunities arise, employees will leave for better paying jobs that offer stability and advancement.

The newspaper states that, according to a CareerBuilder survey, twenty-eight percent of workers have said that they expect to switch fields in the next two years, looking for steady employment.

The Kansas City Star reports that despite demands to keep budgets tight, in an attempt to retain talent, many companies have begum using employee reward programs.

"Some employers are taking the opportunity to review their workplace cultures and how they recognize employees, re-examining everything from telecommuting to the structure of rewards programs and charity participation - the major challenge: doing it on a budget.”

Companies are increasingly using point-based reward programs. Employees are encouraged to participate and nominate each other "for a job well-done". Other companies are opting for wellness programs or sales contests. The accumulated points can then be redeemed for merchandise.

Restoring pay and benefits at this point might be ambitious, but experts argue that companies most actively engaging in their employees, tend to be the ones already recognized as being the most charismatic workplaces.

About Nichole Gunn