Designing your incentives program

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Revenue generation is the core function of the sales team. A company wide incentive program will act as a connector with HR, administrative, accounting, and other departments, deemed a cost center that supports the sales functions. While sales are the primary source of profit, there is much hidden revenue that the HR department can help you achieve.

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Designing your incentives program

  1. 1. Designing your incentives program.In response to requests we receive about incentive bestpractices, here are some ideas and general guidlines. With somesimple planning and the assistance of an incentive professional,you can initiate, develop, launch and implement an effectiveemployee sponsored corporate incentives program. At the outsetI also recommend downloading our free incentive planningguide.It is important to approach initiating your program with theknowledge that recognition and engagement programs work.Taking time to review case studies and success stories will bringa more positive attitude toward your efforts.Place emphasis on improving top down and bottom up communication in your organization.Many organizations are looking to begin or improve their way of acknowledging an individuals level of contribution witha Service Awards program. Knowing what works and doesnt in todays economy can be the difference betweensuccess or throwing your money away.Identify your performance criteria. In other words stategize with your team what areas you want to improve on. In mostcases companies report they want to improve sales.Revenue generation is the core function of the sales team. A company wide incentive program will act as a connectorwith HR, administrative, accounting, and other departments, deemed a cost center that supports the sales functions.While sales are the primary source of profit, there is much hidden revenue that the HR department can help youachieve.Consider that the wheels on the bus go round and round only if someone is driving it, or you have people willing topush if it runs out of gas. Your company is nothing without the people that make it function, and an engine needs to befiring on all cylinders to work efficiently. If even one spark plug goes bad, your engine might not run at all.Incentive programs act to keep your performance engine running by engagment and motivation. Employeeengagement is the fuel that generates exceptional performance at the best companies.Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc.
  2. 2. An engaged worker is the one that “gets” the company goals, has pride and satisfaction in his work, and makes theextra effort to get all the things done that propel the business forward. Some examples might be a group of factoryworkers staying on for an extra hour without pay to help meet a company production goal, a salesperson that answersthe phone at 4:58 on a Friday to speak with a customer even though he may be there for another half hour, acustomer service rep that recognizes a great sales opportunity and even though it has nothing to do with her supportfunction brings it to a sales manager to explore.You probably have people like this in your company which is a fantastic asset, your everyday heroes. The onlyproblem is they are usually the minority in the workforce.A recent Towers Perrin Global Workforce study found that only 1 in 5 workers are actually engaged. That means thatyou’re investing in 100% of all the salaries but only getting a 20% return in performance.If only 1 in 5 workers are engaged in their work then what are the other 5 doing?Remember, the single most important reason that motivates a customer to purchase your product is their trust in you.Do your employees trust that you are concerned about them? Do your actions make them feel you care about them?Do they know and understand the company mission, their responsibilities and duties?Did you explain how their contribution fits into the big picture and do they understand what help is available to them?Do they have a say in the business process, have a career path that is fulfilling, and have managers that supportthem? Have you ever had to accomplish a task with unclear goals or thought the methods were all wrong? Did youwonder why you should even bother to do it at all?Employees that are motivated will be engaged and perform more and effective work. On average companies that havemade the effort to engage their workforce succeed in any economy.In South Africa there is a traditional philosophy for living called Ubuntu. The core principle is that all people should betreated with respect and courtesy simply because they are part of the human race. This extends into helping anyoneat anytime in need and is part of the normal order of things for the people to live in this way. This is a far cry from thecut throat competition and condescending management practices in many business environments. Imagine how youremployees will feel when you give them the courtesy and recognition they deserve in all your dealings with them.Here are some constructive questions to ask yourself.-Is your management practice killing your employees? Recent research has found that stress on employees from poormanagement practices is actually causing increased heart attacks. Maybe it’s time to consider implementing somesensitivity and communication training in your company. Reward this behavior from your managers. Employees thatfeel that they are properly informed about corporate goals and how they fit into accomplishing those goals are lessstressed, more productive and less likely to leave. Make sure you are rewarding only good management behavior atyour company.Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc.
  3. 3. -Are you recognizing your employees’ efforts? Some managers still believe an incentive is: do your work you can keepyour job. Your workers want to feel that they belong to a meaningful relevant company that cares about them. Rewardthem often for all the good they do, and motivate them to be better corporate citizens for improved performanceacross all areas which will translate into more revenue.-How well are your people trained for current tasks and advancement? Do you train to improve skill sets that can leadto advancement? One the top three things generation X and Y workers want is to have career advancement options orthey will look elsewhere, probably at one of your competitors. Use of quiz tools can help.-Have you mined your collective employee consciousness yet? Set up a reward program for good ideas on how toimprove business processes by asking your employees to contribute ideas. A simple improvement in any departmentor process may be worth millions in saved time or money which goes right to your bottom line. Set up an ongoingpractice to collect ideas and be sure to quickly recognize and implement the best of them while rewarding the winningideas with a special incentive.-Is your environment safe? Are insurance premiums climbing through the roof? Make your company a safer place towork by Incenting completion of employee training for proper safety procedures. By using quizzes and rewardingsafety goals that are met, you will increase engagement, and reduce accidents and insurance premiums. You canhave monthly and quarterly safety goals that reward entire teams or departments.-Employee Service Awards. Are you recognizing time spent at your company? Service awards publicly recognize timespent for providing excellent service at your company. Make your staff feel good about themselves. Offer a meaningfulreward and also give them something to display publicly at work to keep motivation high and give others a visible goalto strive for.The best 100 companies to work at are rewarding and implementing employee ideas to achieve increased revenueand stock prices in spite of the economy. Proper recognition, rewards, and incentive programs can help your companybe one the best places to work with happy, engaged employees that want to come to work and will result in makingyour HR department a Profit Center instead of a cost center.Employee Incentive recognition and awards programs usually always pay for themselves. Take some time to calculateand add up these costs in your company. You will be surprised at the amount of hidden revenue potential in youreveryday HR initiatives.The overall wellness of the workforce has a huge impact on productivity which also translates into revenue. If youcould reduce the amount of sick leave every month, quarter, and year, how much more will your company accomplishand save in lost revenue? Healthy employees produce more, with better results, and can lower your insurancepremiums. A Wellness incentive program can reduce individual absenteeism by a week or more every year.Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc.
  4. 4. Improving employee wellness with incentive wellness programs have successfully impacted behavior and improvedperformance.-A corporate-wide, all employee recognition program must be derived from specific goals which can be clearlymeasured and effectively communicated.-The employee incentives program must be packaged or positioned in a clear concise and memorable format.-Senior management support is essential; however buy-in commitment and support for the recognition program mustcome from all levels of management.-Specific employee incentives program initiatives must produce measurable results that directly impact thebottom line and deliver substantial ROI.-All elements of an employee incentives program must be linked to the achievement of specific and clearly definedgoals.Participating employees must be presented with timely awards at a value commensurate with their efforts andcontributions. A base award earning opportunity should form the foundation of the incentives program and be linked toachievement of corporate goals. In addition, instant award and discretionary award opportunities should be present togenerate on going enthusiasm and reinforce the overall importance of the employee incentives program.The employee incentives program must be clearly, effectively and frequently promoted in order to buildawareness and maintain intrinsic motivation and employee excitement. So remember.....Promote! Promote! Promote!Share This Taico® :: 67 Patterson Village Ct., Bldg F :: Patterson, NY 12563 :: 845-228-GIFT (4438) :: fax: 845-228-5136 :: info@taico.com © 2012 Taico® Incentive Services Inc.

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