Do I need an incentive scheme for my company 10 reasons why. You might be asking the question; do I need an incentive scheme for my company? It sounds like quite a straightforward question, but there are many nuances to take into account.
So in this article, our experts are diving into the reasons why you might want to implement an incentive scheme for your company, and perhaps reasons why you might not.
Let’s start with a quick brief, then we’ll dive into more details…
An incentive scheme can drive staff engagement, boost morale, and improve productivity and innovation. The right program can encourage staff development and cost reductions. It creates accountability, rewards loyalty, and is better for customers. Plus it doesn’t have to cost a fortune to implement.
Plus, for incentive programs, you don’t need to reinvent the incentive wheel. You can use our library of industry and role-based incentive templates.
So now we have a quick overview… do I need an incentive scheme for my company? Well, there are more points than just those above, so we’ll get into more detail.
Do I need an incentive scheme for my company 10 reasons why?
Before embarking on any implementation, it helps to know what benefits your company, staff, and customers might achieve.
So below you’ll find the 10 main reasons that should answer the question; do I need an incentive scheme for my company…
1) Helps to motivate employees
Incentive schemes can help employees to stay motivated and engaged with their work.
It can be a powerful tool when it comes to encouraging increased productivity, as well as encouraging improved performance. An incentive of some sort is often seen as an added bonus that helps keep people on track.
When a goal is achieved, regardless of how small it is, the boost of reward can help to keep employees motivated and looking for more success.
Finally, incentives can have a positive effect on employees’ motivation levels. People who feel like their work is valued and rewarded will be more motivated to put in extra effort and give it their best shot.
This leads to higher levels of productivity across the board and helps create a productive work environment.
2) Creates a sense of competition
A good incentive scheme should create a healthy level of competition amongst employees.
This encourages them to ‘up their game’ and strive for even better results. Competition creates sparks and motivation amongst your team, meaning you’ll get even higher levels of performance from each person.
This is particularly useful in sales environments, where employees often expect additional rewards for providing a higher-than-expected sales performance. Here’s more on how to build an incentive scheme for a sales department.
3) Retaining talented employees
A well-crafted incentive scheme can be a great way to retain talented staff.
Showing employees that there is an extra reward for achieving excellence, will help them to stay motivated and stick around for longer.
According to Statista, a lack of compensation in the workplace is the second highest reason for staff leaving, after career development. A staggering 36% of employees are likely to leave due to this reason.
Implementing an incentive scheme in your company can help retain staff, and in turn reduce costs, which discuss in more detail shortly.
4) Rewards loyalty
An incentive scheme can also be used to reward loyalty. If someone has been with your business for a long time, it’s an ideal way of showing them your appreciation and rewarding their commitment to the organization.
Plus it can be used to extend loyalty further by offering incentives to employees that have been with the company for longer periods of time.
This helps keep those key individuals around and motivates them to stay even longer.
5) It’s economical
An incentive scheme doesn’t necessarily have to cost you large amounts of money.
You could simply offer gift cards or vouchers as rewards, or even something as simple as extra days off work in return for hard work and dedication. This small gesture can make a big difference in the workplace.
Small gestures like this can also take the form of simple words of appreciation and recognition.
Employees that feel appreciated and valued are more likely to stay in the long run, making an incentive program a great investment for your business.
If you want to learn more about implementing a cost-effective incentive scheme, then download our easy 5-step guide to build a better bonus program.
For the most part, adopting an incentive scheme, when done correctly with one that can be automated, will always provide a return on investment.
6) Promotes innovation
Incentives can also be used to promote new ideas and innovation within your team. When people are rewarded for their creative thinking and encouraged to explore new opportunities, they can come up with interesting solutions that may not have been considered before.
This makes brainstorming sessions, and employees thinking about improvements far more effective.
Similar to providing a competitive environment, incentives also create a sense of competition for ideas, which can lead to greater levels of idea-sharing and problem-solving.
Innovations can also lead to lower costs…
7) Cost reductions
Innovations can often result in savings. By finding new ways of doing things, businesses may be able to reduce costs by making processes more efficient or saving on materials and labor.
Incentives can encourage people to put forward cost-saving ideas as well as help motivate people to find a better way of doing something they are already working on.
8) Accountability and ownership
Incentive schemes encourage people to take ownership of their work and be accountable for the results. When workers are given a measure of responsibility, particularly where achievable and rewarding goals are included, they will often put in more effort and perform better.
This can lead to greater levels of productivity and quality from employees, as well as create a positive working environment.
Incentives also help to ensure that workers are held accountable for their actions. When employees are rewarded and recognized for the work they do, they will be more likely to take responsibility if something goes wrong.
This can help to build trust between managers and employees and create a culture of transparency and accountability in the workplace.
9) Employee development
Incentive schemes can also encourage people to take ownership of their own development.
By offering rewards for completing tasks or learning new skills, employees are incentivized to take on more responsibility and this invariably leads to staff looking to increase their knowledge.
Naturally, employee development that is driven by the employee themselves are more likely to be met with enthusiasm, and can in turn be beneficial for both the company and the individual.
10) Improves customer experience
Incentive schemes can also benefit customers. Rewards such as discounts or freebies are often used by companies to show their appreciation for customers who continuously use their services.
This helps create a positive relationship between the company and its customers, and it can also encourage customers to return in the future.
Additionally, loyalty programs that offer rewards for returning customers are a great way to retain existing customers and attract new ones.
Need even more clarity? We’ve distilled incentives down to 3 reasons why you should start an incentive program.
Do I need an incentive scheme for my company – Next steps
An incentive scheme can be a great way to reward your team for their hard work and dedication while also motivating them to keep striving for success.
It doesn’t necessarily need to cost you large sums of money either; even small gestures of appreciation or recognition can make a big difference when it comes to keeping your team motivated and productive.
However, the better an incentive scheme is planned, the greater the results it will yield. So for your next logical step, book a quick 15-minute demonstration now to learn more about our incentive program.
We hope this has helped to answer the question; do I need an incentive scheme for my company? Click here to get in touch with any questions.
