Offer Your Employees Incentives For Increased Profits
An employee incentive is sometimes the best thing that a company can offer to its employees. While many smaller businesses do not want to share their profit because there is not very much of it, other companies are realizing that employee incentives are the way to go.
All of the companies around could not be making the profit that they make without the employees doing the work. So, since the employees are doing the work, they should be given some of the profit they are working for. This is the best employee incentive to give to employees. If the employees are receiving money directly related to the company, they will work better, more productive, and more efficiently because they will be making money depending on how hard they work.
Many employee incentive programs offer stock options in the company. This is also a great employee incentive because it allows the employees to be part owner in the company they are working for. They will start to care more about little things like how much paper is being wasted or how long it takes to complete a project. If their stock is going up or down based on their performance they will almost surely work harder.
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There are other employee incentives as well, such as giving bonuses for working so many hours of overtime or getting accounts receivable in on time. These types of incentives are good as well, except for the fact that they can be grayed at times. If an employee is offered a bonus for working 50 hours a week instead of 40, they may still only do the work that they could have in 40 hours and waste the other 10 hours on the Internet or something else. It is important to be careful of the incentives and make sure that the employee is working the full time and not just being there for the bonus. The same thing goes for employees that are offered time for billing projects. Some employees will up the amount of time they are billing and end up costing the company more money instead of bringing in more money. While the employee does not need to be monitored twenty-four hours a day, the reports that come through each week should be looked at to make sure that the incentives are working correctly and not against the company. For example, if a company is offering incentives for billing so many hours a week, maybe they could offer an incentive on how many projects get done per week. This way, the billing of projects will not be outrages and more projects may get done in a week. The thing to watch with this is how well the quality of work on the projects is getting done. The quality cannot go down just so that the amount of projects at the end of the week is high. Offering incentives to employees is tricky but can be extremely beneficial to the company and the employee if they are put into place the correct way. |
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Tips in Selecting the Best Employee Recognition GiftsBy Janet Verra Measuring the Return on Investment & Value on Investment of Employee EngagementBy Doug K Brown |