How can incentives help your business?
ByIncentives and premiums, especially those that use non-cash rewards can have a significant effect on improving overall business value, from employee engagement to customer satisfaction to the your bottom line. In a down economy, incentive programs can have multiple benefits such as: help boost sales, improve employee engagement, improve customer service and satisfaction, reduce absenteeism, increase employee retention, improve safety records and reduce insurance costs.
Wellness programs are especially popular. Research indicates that there is a 3.65 to 5.8% return on investment for every dollar in smoking cessation, weight loss, stress control and cholesterol reduction. There is a very strong cost-benefit correlation between company and employee. Employees who complete these kinds of profiles are most likely to participate in the program. One program might include a point system which rewards participants for taking steps to improve their health including joining a gym or participating in a local 5K run or walk for life. The points accumulated can then be redeemed for certain merchandise which may be printed in a simple brochure or listed on the company website.
Another trendy program type entails safety incentives. Again, a points based system awards employees for improving their safety record in the workplace. If everyone of a particular team achieves a clean, no accident record, additional points are awarded. This encourages people to be more pro-active and accountable when they see an accident about to happen. Instead of snickering when co-worker Scott is about to fall off a ladder or trip over a misplaced piece of equipment, they’ll run over and warn him of an impending accident. The safer workplace can result in enough points to earn a Callaway Driver, Sony flat screen TV, Bose Wave radio, TomTom GPS or other sought-after brand name merchandise.
Employee recognition programs are another great way to thank people and show that they are valued and appreciated. In these troubled times when companies are being forced to downsize and freeze or even cut compensation, incentives can go a long way in boosting morale and retaining company loyalty. Maybe there’s no longer a gold standard for 50 years of service, but a simple lapel pin, well-designed plaque, acrylic/glass/crystal award, desk accessory, watch/clock, chocolate or food gift, unique mug/drinkware, shirt, sweater/vest, jacket or tie might engender the desired effect. These items will typically have the company logo in engraved, screen/pad printed or embroidered form. The additional of an employee idea program where employees are engaged and encouraged to submit/recommend new products/services or suggest ways to become more efficient and therefore cut costs, can reap all kinds of benefits.
Incentives are all about changing or recognizing behavior. Motivation tools can take numerous forms, from gift cards and travel/vacation enticements to great gifts and consumer products. Developing an on-going, effective and efficient program takes planning and considerable for-thought. Consider outsourcing to an incentive professional or promotional products consultant for name brand premiums and corporate recognition recommendations and proven program ideas that are ROI rich.
