Incentivising is based on using positive reinforcement and some sort of reward to promote productivity and an up-building working environment. Some companies provide incentives for their clients (“Buy one get one free”, for example) while others incentivise their staff (“Sell 10 vacuum cleaners and get a day off”, for example). This actually works, not only to promote positive behaviour, but also to discourage buying or selling practices that are not preferable.
When used within the internal structure of the company, incentivising has many positive effects. These are:
- It helps to focus the employees as they strive for very real, attainable goals. This prevents them (to a large degree) from becoming distracted with social networking, gossip and internal politics as they keep their goal in mind.
- It motivates the staff to try harder and do more, particularly at otherwise quiet times of the year or month.
- Implementing such a programme extends product knowledge amongst employees, since they need to know more about more in order to sell more.
- Incentivising boosts productivity for the company as well as its sales representatives, if relevant.
- Recognising good performance and rewarding the staff improves the retention statistics of your staff members, since they feel valued and appreciated.
- Such reward programmes also draw new recruits to your organisation, making it a desirable place to work.
- Staff members that are not committed to working hard or are prone to laziness will be identified and, over time, sifted out by an effective incentive programme.
- Incentive initiatives go a long way in building the internal brand of an organisation. This is a paramount part of establishing brand loyalty and the commitment of staff members to the overall success of the organisation.
- When your team shares a common goal, the bonds between the individuals are strengthened. This is true even when there is a healthy sense of competition between and amongst the employees. Be careful not to let the competitive nature of an incentive programme cloud the cohesive effect.
In order to make an incentive programme successful, ensure that:
- The desired outcome or behaviour is very clear to the employees. They need to know exactly what the end goal is if they are going to be part of achieving it.
- Choose a reward that is relevant, desirable and beneficial to those attaining it.
- The reward should be as frequent as the behaviour.
