With a talent shortage and high turnover, it is vital to retain top performers. One way to do so is through employee incentive programs. Monetary incentives can include a bonus for meeting sales quotas, production goals or other metrics. They can also be a portion of the company’s profit-sharing plan.
Motivation
People who love their jobs want to go the extra mile. They don’t just work for the paycheck; they want to make a difference, achieve excellence and contribute to the success of their company. A good way to get employees on board with this mindset is by letting them know how their work contributes to the bigger picture. Effective leaders use impact as the success metric, rather than quotas or profits, to help their teams see the value in their daily tasks.
We conducted a moderated-moderation analysis to shed light on the effects of intrinsic and extrinsic motivation on heavy work investment of time and effort and job engagement. The studies revealed that the impacts of these two variables vary based on worker status and country/culture.
Encouragement
Employees who see a clear link between their hard work and rewards are more likely to be motivated. That’s why avoiding pitfall-inducing strategies, such as monetary incentives that feel like entitlement rather than earned rewards, is important. Instead, opt for team-oriented incentives that encourage collaboration and build stronger relationships among your staff. In addition, try offering employee incentive programs, such as restaurant gift cards, concert tickets or weekend getaways, that they can personalize and connect with. It costs an average of six to nine months of an employee’s salary to replace them, so it pays to focus on encouraging your team. Even low-key forms of encouragement can work, such as sharing uplifting words or ideas. It only takes a moment but can have a huge impact over time.
Recognition
It’s no secret that employees feel happier when recognized for their efforts. And when recognition is frequent, the impact can be even greater. A recent study found that companies prioritizing employee recognition see 56% more engaged employees. Regularly recognizing the behaviors that align with your company values keeps employees connected to the company and motivated to do great work. Make sure to celebrate micro-moments, like an employee’s effort to solve a tricky problem or their daily thank-you notes. Link each recognition to the behavior you want to see more of in your organization, and be sure to share the results of your recognition program with everyone in your organization. You can also incorporate recognition in one-on-ones and feedback conversations to reinforce that it is a key component of your ideal company culture.
Recognition of Achievement
Employees who are recognized for their efforts feel valued and encouraged to maintain or improve their productivity. This, in turn, fosters a positive workplace culture and drives business success. Recognition can be given formally through bonuses, rewards, or promotions. But it can also be done more informally, such as a verbal compliment or a handwritten thank you note. While monetary incentives are important, people are more often motivated by something else, such as a sense of accomplishment or belonging. Understanding what your employees and students value most is important, as this will help you design an effective program that meets their needs.
Feedback
Most managers want their employees to succeed, and most workers wish for that success. However, a common practice of examining performance outcomes and trying to understand their causes may need to be revised. Feedback theorists suggest that discussing past performance can lead to a concurrent understanding of the determinants of success and failure, with managers and employees agreeing on what should be done in the future. Yet, our analyses suggest that this is unlikely to occur. Feedback discussions drive feedback providers and recipients further apart rather than closer together. These findings apply across dyads and for all measures (performance quality, performance importance, and internal attributions) and are robust to time, role, and interaction effects.
