The Power of Incentives
Adding more oomph to your employee value proposition (EVP) by rewarding people for good work is a mutually beneficial initiative. Well-structured incentive programmes can increase employee performance by as much as 44%.
We explore why strategically planned incentives, as part of reward management are a successful tool for a thriving connected culture.
The Impact of Incentives
Maximising performance and productivity:
As well as the obvious driver of sales, values and behaviours, incentives are a great way to encourage learning and development – effective in educating people on change, products, services, or client/customer relationships as part of a more holistic business benefit which drive both performance and productivity.
Add more oomph to your EVP:
A solid employee value proposition defines what your company is about, its essence – we see it as a unique set of benefits and incentives you’ll commit to in exchange for the capabilities of brilliant people. Desirable incentives give this a helping hand, attracting new talent and in retaining people – your best asset! Organisations that deliver effectively on their EVP can decrease annual turnover by an impressive 69%.
Igniting behaviour change:
Incentives are a fantastic tool for inspiring new habits. From motivating sales of a product/service, training your people so that they’re equipped with new skills which influence behaviour, or as a route to effectively embedding your company values.
Helping to look after mental health:
68% of Senior HR leaders rated employee wellbeing and mental health as a top priority in the Future Workplace 2021 HR Sentiment survey. We can motivate, give direction, and encourage shared identity using effective incentive tools which give people both purpose and a sense of belonging. Purpose and belonging go hand-in-hand with mental health, companies who prioritise the mental wellbeing of their people experience more loyalty and as a result less turnover and increased productivity.
Retain great employees:
Using incentives as a route to recognise, increases retention. It cements the bond between brand and people, even more so when communicated well – which helps make the incentive clear, desirable, and attainable. Communication shouldn’t stop when the incentive ends, it should be a continued narrative showcasing to your people that great rewards are within reach too, which gives them opportunity in the future, increasing loyalty.
Healthy workplace culture:
Recognition through incentives helps people to see and feel that their employer values them and their contribution to the success of both their team and the overall business. We find that this helps to breed a healthy workplace culture, one where good work doesn’t get overlooked, people know that they really do count!
Boost the bottom line:
Compelling incentives do help retain happy positive people which saves money on absenteeism, encourages better NPS/eNPS scores, reducing recruitment expenditure and costs associated with reduced productivity of new hires. Overall, research shows that the benefits vastly outweigh the costs associated with implementing incentive programmes – a 5% increase in employee retention can generate a 25% to 85% increase in profitability.
Well-structured incentive programmes can increase employee performance by as much as 44%. Companies using incentive programmes reported a 79% success rate in achieving their established goals when the correct reward was offered. Engaging your people with a compelling and carefully considered incentive strategy motivates change plus it shows that you value performance which builds a strong, positive company culture.
Incentive programmes can boost people performance by between 25-44% if they are executed and monitored correctly, the incentive theory of motivation proposes that people intentionally pursue certain courses of action as they desire the associated reward, it’s goal orientated. Because of this, understanding human behaviour is critical to get under the skin of what really incentivises people.
Here at The Team, our incentive strategies are backed by behavioural science to helps us understand why people do what they do so we can design effective solutions to drive positive change.
We’ve been driving employer branding through internal communication strategies backed by behavioural science for almost 40 years. We’re experts in devising and delivering highly successful incentive programmes to include employee, sales and channel incentives as well as corporate rewards, find out more here.