In the modern world of employee engagement, the smartest businesses are offering employees bonus plans. While money isn't the primary motivator for staff, a strong employee incentive plan will motivate your employees and focus them on the KPIs that matter to the business.
Sounds great, yes? The trick is careful planning, as a poor incentive plan can have zero or negative impact.
Here are five great tips for creating the perfect employee incentive plan:
1. Simple.
If you can’t explain it in one minute, the plan is too complex for your employees to aim for. Simple is best. Avoid complex tables and metrics that will simply confuse the matter.
2. Meaningful.
Make sure the employees can impact the results through their actions. If they can't impact the results, incentives can be a huge disincentive.
3. Measurable.
The metrics need to be measurable, so your employees can understand and agree with them. Don't make incentives based on subjective metrics but stick to cold hard, measurable, transparent outcomes.
4. Common Goal.
Incentives are a fantastic way to get your team working towards a common goal. Where possible, make incentives across teams or link people to get everyone rowing in the same direction.
5. Timely.
Share the results regularly and reward employees as soon as targets are achieved. When targets are achieved, give instant recognition; when they are not, give feedback and coaching to assist.
Sharing your business success with your employees is a great way to improve your business quickly and pull the team together. Plan and implement well, and everyone benefits.
Cheers
Simon Ingleson
CEO/Founder @ RosterElf
Magically Simple Rostering Software
