Key factors in building an employee incentive program that works

by: Nichole Gunn September 7, 2010

Employee incentive programs serve as powerful tools in the corporate world. A well-established program can boost employee morale, strengthen customer service, and heighten overall sales performance. However, constructing an effective incentive program that achieves these objectives can be extremely challenging.

There are a number of factors that must be considered when designing an incentive program that works. First, it is crucial for human resources to plan strategically. Second, and most important, incentive programs must have a common goal that unifies the company goals and employee goals.

According to Business Consultant Michelle Smith who is noted in Prexmium Incentive Products magazine, addressing “values, behaviors and outcomes” is the best way to form a general goal. A program lacking preparation fails to reach the desired goal, and an employee incentive program that fails to reach a desired goal is anything but effective.

Identifying the right rewards and tracking performance, according to Incentive magazine, are just a couple of the other key factors that come into play when building a successful incentive program.

The magazine suggests having an incentive program that is simple to administer. It takes more time to engage an employee than it does to disengage them. Therefore, incentives must be timely.

In order to motivate and ensure that the desired behavior or performance will be repeated, incentive items must be given to employees shortly after a goal has been achieved. Rewarding employees will help the business further voice corporate values, and ultimately boost sales.

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