Employee incentive programs are designed to reward employees that have excelled in their work. A reward scheme motivates employees to meet and exceed targets and adds to the overall performance of the company. The types of programs and rewards vary but the concept is the same for all incentive programs. The program is about recognizing the achievements and input of outstanding employees.

Human resources are integral to the success of any business or company. It is therefore essential in a highly competitive market to create a working environment that recognizes and rewards the contribution of employees. Third party employee recognition/reward programs help increase employee performance and in doing so increase the overall productivity of the company.

Apart from monetary remuneration it is important for employees to feel their work towards company goals is appreciated. Employee incentive programs are an opportunity for employers to boost company morale and to highlight the important contributions made by their employees. Employee recognition and reward programs motivate employees because incentive programs show a kind of specific appreciation that cannot be achieved with a paycheck. Employees who feel their work is really appreciated and their contributions are recognized are more motivated to achieve results.

When implementing an employee incentive program it is often good to talk to your employees about the kind of program that best suits them. Some employees might prefer cash rewards like performance related pay (PRP) or on-target earnings (OTE) while others will want another kind of reward. Communicating with employees about the kind of incentive program they want will further add to their motivation. If they have a sense that they are part of the decision making process they are more likely to respond to the incentives.

Employee incentive programs can be customized to suit the company. You may set targets and reward employees for meeting those targets or simply reward employees who go beyond the call of duty or put in extra work. Employee recognition programs go a long way to creating a happy and productive work environment. They create an environment that fosters the development of both individuals and the company in a way that is mutually beneficial.

An employee that feels appreciated will work twice as hard as one that feels their contributions go unnoticed. Employee incentive programs motivate employees and help solidify their commitment to the company. Workplaces that use these recognition programs have found they greatly increase office harmony, teamwork, morale and in turn overall performance. Employees are motivated to achieve greater results not only because of the rewards they receive but because of the appreciation they are being shown.

Simple gestures count the most

Bob Nelson

One of the best kept secrets in management today is the power of recognizing employees. Study after study has demonstrated that what employees most want is to be acknowledged for the job they do day in and day out. This recognition does not have to be anything fancy, in fact, the simpler and more direct, the better. One of the most motivating forms of recognition as reported by employees is very simple indeed: taking the time to personally thank an employee for something they did well. This seems very obvious yet when was the last time you did it? If you are typical, it has been some time. If this is the case, start thinking about who you will thank for his or her efforts today.

To be the most effective, the thank you should come as soon as possible after the achievement or desired activity has occurred. If you wait too long to thank a person, over time the gesture will lose its significance. Implicitly, the employee will figure that other things were more important to you than taking a few minutes with him or her.

You need to also be very specific about what you are praising the person for and why. Praisings that are too broad tend to seem insincere. But saying, "Thanks for staying late to finish those calculations I needed. It was critical for my meeting this morning," specifically says what and why an employee's effort was of value.

If you need a reminder, a form can be used. At Tektronix, Inc., the company instituted a simple way for managers and employees alike to focus on recognizing others for doing something right. Dubbed the "You Done Good Award," this simple certificate was printed in pads and could be given to anybody in the company from anybody else in the company. On it, individuals stated what was done, who did it and when, and then gave the certificate to the person.

The idea has caught on and is now part of life at Tektronix. Says one employee: "Even though people say nice things to you, it means something more when people take the time to write their name on a piece of paper and say it."

Another simple yet effective approach is to put notes on business cards. Hohn Plunkett, Director of Employment and Training for Cobb Electric Membership Corporation in Marietta, GA, says "People love to collect others' business cards. Simply carry a supply of your cards with you and as you "catch people doing something right," immediately write "Thanks," "Good job," "Keep it up" and what they specifically did in two to three words. Put the person's name on the card and sign it.

Although less personal, messages left on telephone voice-mail or computer e-mail can be also be effective. All these simple gestures indicate that you are not too busy to miss the fact that an employee has done something special.

As Ron Zemke, senior editor of Training magazine once observed: "Recognition is something a manager should be doing all the time -- it's a running dialogue with people." The act of delivering simple, direct praise for a job well done is so easy to do, yet so many managers do not do it. As a result they are robbing themselves and their employees of one of the most powerful forms by which to shape and reinforce desired performance -- and feel better in the process. Try it, you'll like it--and so will those with whom you work.

Return on People

Bob Nelson, Ph.D., is president of Nelson Motivation Inc. in San Diego, CA (800-575-5521) and author of 1001 Ways to Reward Employees and 1001 Ways to Energize Employees.