Creating an incentive program that drives engagement
Thank you for attending the “Performance Incentives that Drive Engagement” webinar with Insperity’s Peggy Richmond, director of compensation services, and Cheri Fields, performance specialist for service operations.
We hope the best practices and tips shared will help you create, implement or improve your company’s own incentive and bonus plans. Here are a few things to consider in your quest to develop and deliver employee bonus programs that inspire your team to do their best work and be rewarded for it.
The first point to consider when developing your employee bonus program is if it will align with your company’s business strategy and compensation policies. It definitely should.
Also, take some time to think through the following considerations:
- Your expectations
- What you’re trying to achieve
- Your company’s specific situation
- Your existing resources and staff bandwidth
Once you’ve got a clear picture of what your wants, needs and resources are, ask yourself a few questions to better define the details of your company’s employee bonus program.
What motivates your employees?
Have you asked your employees what they value most? Is it enough to give them a year-end bonus, or would they feel more encouraged if they knew they could receive a spot bonus? What about non-cash rewards? Would more PTO or work-from-home days be better than a check? Whatever the answer, it should be taken into account as you develop your bonus program.
It should be very clear who is – and who isn’t – eligible for the bonus program. If only certain positions or employees who have been with the company for longer than a designated time period are eligible, it should be listed in the program information. For example: “You must be a full-time customer service specialist, hired on or before September 1, 2020.” Also consider how performance will be measured and how you will structure the goals. The goals shouldn’t be easy, but they should be attainable.
How will you communicate requirements and expectations to employees?
The lines of communication should be open between employees and managers to ensure that employees are in the loop about what they need to do to earn the bonus. Consider having managers schedule regular meetings with employees to get updates on their goals and the steps they’re taking to reach them. This will help managers to clarify any questions employees may have and identify potential roadblocks to goal completion.
Why and how should you document your bonus program?
The last thing you want is to announce your new employee bonus program and watch your inbox fill with 50 emails asking for more details and clarification. To prevent that, you can provide your employees with documentation upfront that lists out requirements, deadlines and other pertinent information.
Be sure to address aspects such as whether an employee who resigns or is terminated will still be eligible to receive part of their bonus. Having this documentation on hand as part of your policies and procedures will help resolve these types of issues quickly and efficiently.
Adapted from the Insperity blog, Employee bonus programs: What’s right for your company?
Category: Performance Management / HR