We get the question all the time, ”How do we use bonuses to motivate performance?” Our short answer is try out ourlinQ. We promise with a little implementation it motivates and improves performance! 😉
Now we will break down how to use discretionary bonuses to motivate performance.
First lets define what a discretionary bonus is. A discretionary bonus is a type of bonus that is given to an employee at the discretion of their employer. This means that the employer is not obligated to give the bonus, and the amount of the bonus is not predetermined. Discretionary bonuses are often given in recognition of outstanding performance, but they can also be given for other reasons, such as a sign of gratitude or to motivate employees.
They are typically given at the end of the year or fiscal quarter, and they can be based on a variety of factors, such as individual performance, team performance, or company-wide goals.
Discretionary bonuses can be an awesome way to show employees that you appreciate their hard work and that you are committed to their success. They can also help to create a more positive and productive work environment.
However, it is important to use discretionary bonuses wisely. If they are not given out fairly or consistently, they can actually have the opposite effect and demotivate employees. Here are a few tips on how to use discretionary bonuses to motivate performance:
- Set clear goals and expectations. Employees should know what they need to do to earn a bonus. Make sure that the goals are achievable and that employees understand how their performance will be measured. Here at ourlinQ we believe transparency is the key to success. Working with hundreds of companies over the years we have streamlined the transparency formula. To try out our software, schedule a 15 minute demo.
- Communicate regularly. Keep employees updated on their progress and let them know how they are doing. This will help them to stay motivated and focused on their goals. We love our LIVE Dashboard that communicates regularly with employees. It show’s the team where you are at on a project and more importantly when the employee is meeting their targets, they see the incentives going up.
- Recognize and reward employees regularly. Don’t wait until the end of the year to recognize and reward employees for their hard work. Give them small bonuses or rewards throughout the year to keep them motivated. Rewarding employees for completed projects has been found to be very successful and motivating.
- Be fair and consistent. Make sure that all employees are treated fairly and that bonuses are awarded based on merit. If employees feel that the bonuses are not fair, it will demotivate them and damage morale. We suggest setting KPI’s for each individual employee. Need help knowing how to set effective KPI’s? Don’t worry, we got you. Download our 5 Steps to set Effective KPI’s.
- Make it fun. Don’t forget to have fun with it! Bonuses can be a great way to celebrate employee success and to create a more positive work environment. What’s more fun than EARNING incentives. Create an environment where the team feel’s appreciated for their hard work and then see’s the rewards from it as well.
By following these tips, you can use discretionary bonuses to motivate your employees and improve your business performance.
Using discretionary bonuses to motivate performance can be tricky when relying on owners, and team leads to use fairness. But if you take that out of the game and use the ourlinQ software the disgruntled and murmuring employees are a thing of the past. When companies implement the ourlinQ software correctly, motivating employees comes naturally. No longer are you forcing employees to work hard and finish projects on time. Employees are doing this naturally because of the incentives.
Jump on a call with one of our experts today to see a live demo of our software and create employee satisfaction today.