Incentive Programs motivate employees
Incentive programs are launched by various organizations to provide motivation to their employees. The organizations
provide extra perks to their employees over and above their stipulated pay as incentives. As all employees have some personal goals, such as recognition, the incentive programs motivate them to
give their very best to the organization.
The incentive programs should not be seen as unnecessary expenditure on part of the organization. Incentives not only motivate the employees, it also induces a sense of belonging amongst them.
This reduces the rate of attrition and brings down the costs related to recruitment. Also mental satisfaction in the employees automatically brings about an increase in their productivity.
Innovative methods, such as publishing the name of, and giving an award to, the best employee, produces a sense of healthy competition amongst the employees. Incentive programs drastically
reduce the problems of absenteeism too. In the long run, all these effects of the incentive programs combine to provide a boost to the productivity and the profit margins of the organization.
The fact that the trend of incentive programs is on the rise can be seen from this survey, which shows that more than fifty five percent of the organizations are going to increase their budget
for incentives in the coming financial year. A similar number had their incentive budget already in excess of hundred thousand dollars. The top one fourth companies have a combined incentive
budget in excess of a million dollars. Going further in the details, the research found out that almost three fourth of the companies were going to increase their incentive budget in order to
increase their sales.
The other major reasons behind the corporate bodies increasing their incentive budget was increasing consumer loyalty
and enhancing the morale of the employees. The survey also found out that in the coming years there is going to be a dearth of qualified professionals and the incentive programs will help the
companies in attracting and retaining the cream of the talent pool.
As a result most forward looking organizations are implementing the incentive strategy, which is paying them back much more than what it is initially costing.
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