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The importance of Incentive Programs

They can range from the mundane - a special parking spot - to the spectacular -a trip to Tahiti. Sometimes they have catchy or clever names such as employee of the month award, going the extra mile or extra effort awards � or they may simply consist of an extra little something in your paycheck. Virtually every company, large or small, has them.

Productivity bonuses have been around for a long time � the concept dates back to the days when manual laborers who were paid by the hour would earn extra money for producing extra within that time. Today, around 36% of hourly paid workers regularly receive a financial bonus or incentive, while around 20% of company executives receive productivity incentives.

The traditional profit sharing bonus is still one of the most common incentives, � if the company makes money, all of the employees and shareholders benefit. Many companies still give employees a traditional Christmas bonus or present the profit sharing checks along with a celebration.

In addition to cash incentives, companies routinely offer other incentives such as additional vacation time, merchandise or travel rewards. Sales jobs in particular often base salary increases on long term performance.
And there is also plenty of evidence to suggest that incentives and bonuses not only ensure more profitable employees - but a more relaxed and happier workplace as well. Employee Incentive Programs can fully manage a company's incentive operations while saving the organizations' managers an extensive amount of time.

The International Society of Performance Improvement points out that an effective incentive program can increase performance by up to 25% in an employee. As far as companies are concerned, bonuses and incentives are given to employees for several different reasons � to reward good work, to create an incentive to reduce costs and to encourage employees to think from a shareholder�s viewpoint. Many employees see things differently � a bonus is their fair and expected reward for working hard and bringing in money.



It�s perhaps a matter of opinion as to what the least exciting employee incentive might be � the special parking spot may be top of that list. And the most spectacular incentives? First place has to go to the huge annual bonuses of up to six figures that are still routinely handed out to employees of investment companies and merchant banks.

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1) How many employees does the company you represent have?  

2) What are your primary interests?
(click all that apply)
Merchandise Program - Online
Merchandise Program - Catalog
Individual Travel
Group Travel
Gift Certificates
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3) What is your award program objective?
(click all that apply)
Employee Recognition
Safety Awards
Customer Loyalty
Dealer Incentive
Sales Incentive
Consumer Promotion
Employee Service
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4) When would you like to implement an Employee Incentive Program?

ASAP 1-3 Months  1-6 Months Year

5) Please state your Job Title:


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