Incentives that excite
Employee incentive programs have become prevalent in today’s workplace as employers look for ways to not only recognise high performing and loyal staff, but also to motivate improvement and gain commitment from lesser performing staff.
Countless studies have shown that employee incentive programs can particularly drive these outcomes in many organisations.
However, many employers often fall into the routine of merely paying a monetary bonus in this regard. Whilst, this is a very acceptable form of incentive (and we’re sure employees wouldn’t turn down extra money!) there are alternative incentives available that may be more cost effective and help to gain a stronger commitment from employees.
An example of how some organisations have adopted alternate employee incentive programs can be seen in the Mission Australia Enterprise Agreement which was recently approved by Fair Work Australia.
The Agreement contains an employee “loyalty” incentive of an additional week of annual leave for each 5 years of service, and also various other type of leave improvements.
Mission Australia stated that that the purpose of this incentive in particular was to help improve staff retention and it was also “about celebrating and rewarding the achievements of our long-serving staff”.
This type of incentive was very well received among the staff within Mission Australia. However, there are a multitude of different types of incentives and there isn’t necessarily a “one size fits all” for every business.
When planning to implement or revamp an existing employee incentive program, employers should take time to consult with staff to gain a better understanding of what drives them and would be most appealing in an employee incentive program.
Not every idea put forward by employees needs to be accepted by employers. However, involving staff in the planning process may provide a valuable insight into what type/s of incentive would motivate employees to improve their performance and gain their commitment to the process.
If you are currently considering implementing or revamping the existing employee incentive program that you have in your workplace and would like guidance on a process that you could follow to undertake this, please do not hesitate to contact Matthew McDonald.
