| Non-cash incentive programs and fringe benefits can | | | | Congratulations, plus a special card with a special |
| have a powerful influence on attitudes, that should in | | | | message personally written by the manager. |
| turn improve results. You can give employees the | | | | Between the two incentive programs, the latter is |
| greatest incentive program, however, by impairing a | | | | more appreciative. Gift certificates could be a good |
| sense of ownership in the organization. Ultimately, | | | | incentive program but it is sometimes taxable, so |
| loyal and happy employees tend to work harder, | | | | they get only a fraction of what was written on it. |
| leading to increased overall productivity. | | | | Plus, the first incentive program lacks personalization. |
| 1. Share Ownership | | | | On the other hand, the second incentive program is |
| Use share schemes as an incentive program to | | | | far more favourable. A more specialized and |
| reward people for contributing to team success. An | | | | personalized gift ideas as incentive program can be |
| employee who sees his or her efforts rewarded in | | | | more appreciated. It makes your employee feel that |
| company shares will, in theory, identify with the | | | | they are individually valued especially if it comes with |
| company, be committed to its success, and perform | | | | a thank you note. Best of all, presents are also a |
| more effectively. A company with shares in the | | | | better incentive program and a cost-effective |
| company will see that, quite literally, their sucess is | | | | method of motivating staff when cash is short or |
| the company's sucess, and vice versa. The harder | | | | when competition does not allow an increase in pay. |
| they work, the better chance their shares have of | | | | 3. Optimize Benefits |
| increasing in value. In reality, it may be hard to tell | | | | Fringe benefits have become much less effective |
| whether the company?s success is due to | | | | incentive programs financially in many countries |
| employees owning shares, or whether the success | | | | because of tax changes, as mentioned earlier. Good |
| itself has the led the company to issue shares. It is | | | | pension schemes, however, have become more |
| also difficult to know whether employees would have | | | | attractive as incentive programs wherever |
| performed less effectively if no shares had changed | | | | state-funded provision have fallen. The same applies |
| hands. Nevertheless, by giving people a stake in the | | | | to medical insurance. The knowledge that the |
| company as an incentive program, you are making a | | | | company cares for its people in sickness, health, and |
| highly positive statement about them, that | | | | old age is a basic yet a powerful factor. |
| encourages them to feel positive in return. | | | | Other benefits |
| 2. Gifts Aren't Just For Christmas | | | | - Company cars |
| Surprise people with gifts they do not expect. | | | | - Paternity leave |
| Expected remuneration has less impact than the | | | | - Vacations |
| unexpected. Even generous pay rises are taken for | | | | - Help with children?s education |
| granted after a while, as salary increases accordingly. | | | | - Medical care |
| Incentive programs are like a far smaller payment, in | | | | - Mobile phones |
| the form of a gift, and are priceless in the eyes of | | | | - Computers |
| the recipient. An employee could use a cash award to | | | | - Spas |
| buy a gift, perhaps a weekend vacation, but that | | | | 4. Bequeath Status |
| would provide less satisfaction than an incentive | | | | The modern company, with its flat structure, |
| program in kind from the management as a reward | | | | horizontal management, and open style, avoids status |
| for work well done. | | | | symbols that are divisive and counter-productive. |
| Consider which incentive program is better: A | | | | Reserve parking places and separate dining rooms |
| company called for a special meeting for all of the | | | | are rightly avoided. Important-sounding job titles are |
| employees that had achieved the sales quota for the | | | | easy and economical forms of incentive that provide |
| month. In the meeting, the company announced that | | | | recognition and psychological satisfaction. Giving |
| the incentive is a gift certificate. They went to the | | | | people incentive programs of any kind sends a very |
| Accounting Department, as instructed, signed their | | | | positive signal. As they say, it?s the thought that |
| name, and off they go. Or: The company gave them | | | | counts. |
| a specialized mug embossed with the word | | | | |