Incentives are the best way to increase the productivity of your employees and motivate them into something that the employer has given them. All over the world, 86% of the organizations have either a reward program or a recognition program. The employee doing a great job is either provided a reward or at least the credit is given to him or her publicly for the sole purpose of appreciation and to increase the spirit of the employees towards the organization. Out of those 86%, almost 70% offer between 3 and 6 different programs for the employees. The incentives do not need to be always some cash or money. It could be anything that the employer knows that the employee is in need or values it. These programs not only make them more productive, but the employee is 89% less likely to leave the organization.
Need for incentives
Our latest management theories place employees at the first place in the resource table. It came to the light that more than anything, a good employee is what truly makes an organization successful. In this competitive zone out there, you certainly do not want to lose the employees that have worked for you in the past and have shown true devotion to their work. Incentives are simply one more reason for them to stay, as they will do their work and get paid for it, and also if done properly, they will get an incentive maybe a trip to a hill station, or abroad, or some cash prizes or it could be anything. But some of the things should be kept in mind, like something, overly appreciated content could make others jealous of them, or do not make a “the employee” as it may be seen as partial and could have reverse effects.
Some Good Incentives
More than 90% of business owners believe that incentives or more engagement could have a positive impact on the organization, but only a handful of 25% of them follows the strategy. One of the best and the easiest incentive is to say thank you after they have provided their work simply, and you can see that the work is wonderfully completed. 75% of the employees don’t quit their job, they quit their bosses, and by providing incentives, you could be a better boss. Another way could be providing them the best resources to do their job, and something that will make their job easier, for example in higher posts, one could get an assistant, or a better computer or something like that. Communication is the key to a better relationship, whether in your personal life or your professional life. Calling someone by their first name could be the start of your friendship or a better employee and employer relationship because in the offices, it is obvious to behave formally, and that includes a last-name basis.
The incentive that is related to the performance was associated positively with the satisfaction of the job among the employees, the commitment of the organization, and also led to increasing in the trust of the employees in the management. Though, the profit-related incentives that were paid to the employees were found to be not having the same level of the positive effects on the company or the employee. In fact, in many levels of the profit-related incentive pays made the employee be less committed to the management, and it also caused a decrease in the trust level of the employees in the management systems of the company. The profit-related pays had lower job satisfaction among the employees of the company. When the share in the company was involved in the ownership to an employee, it was found that there was a direct relationship to negativity among the employees towards the work satisfaction and also no relation with the commitment of the employees to the job and the management trust.
Problems In Providing Incentives
Giving incentives is, no doubt, a good idea. But with the positive comes the negative, with all the benefits if not done correctly there could be massive loss from it also. You will want to give an incentive in a manner that does not create entitled employees. By creating entitled employees, you could be inviting a huge amount of problems, as if the word gets out, it will surely damage the organization’s image. It could be a reason for the organizational loss. Another thing to keep in mind is that you certainly do not want to demotivate the employees by the incentives by giving them undesirable incentives. This could demotivate the employee, and overall it will harm the organization in a way or another.
Sometimes, the incentive-based reward can go according to the way the company intended it to be. But there are also cases in which it may not go as per the expectations of the company and in which, the incentives provided to the employees can wage a backfire, which may cause a behavior among the employees of the company which is contentious, this may also bring complaints to the company about the unfair distribution of the payment to the employees. This also increases the stress and overwork on the employee. These issues can grow up to be a huge problem for most of the companies or businesses.
According to a recent survey, more than 50% of the HRs are worried that their top employees will leave them for another job within a year and leave them hanging, whereas 66% of the employees are supposed to stay at their job because of the reward programs in their organization. 77% of the employees are reported to feel better if they are recognized for their work, and 39% of the employees feel underappreciated at their job, and this all leads to the increase in the incentive programs in the organizations throughout the world for the encouragement of the employees that have made the organization successful in the first place.