Unlocking the Power of Incentives

The ability to recruit and retain top talent is key to every organization’s bottom line, especially in trying economic times. In an effort to boost sales and increase productivity, now more than ever, smart companies are turning to the power of incentives.

You may not have realized it, but incentives were probably an integral part of your childhood. Want to spend the night at your best friend’s house? Only after your room is clean. Sure you can have ice cream, but only if your homework is finished.

In order to persuade us to be good and do what we’re told, our parents offered special indulgences — desserts, video games or other treats. It’s the theory of behavior modification. Over time, we become accustomed to being rewarded for hard work.

Nothing changes as we grow up, except we want more than permission to eat that big slice of apple pie or have extra time to play Super Mario Bros. before bedtime. To reward outstanding performance today, we want merchandise — from office and desk accessories to coffee cups, bags and even watches.

Incentives are merely a tangible way of saying “thank you,” and in such a competitive marketplace, where retaining employees can be challenging, a few “thank yous” can go a long way. The idea, though, is not to reward everybody for everything. Rather, it is to reward those who consistently work hard, and by doing so, you are creating and maintaining an efficient and collaborative work environment where employees feel involved and motivated.

We all know that dangling the proverbial carrot is an effective way to motivate employees. But to find out how effective, a survey was conducted at the annual Society for Human Resource Professionals convention in June 2007. The results of the survey demonstrated that HR pros find promotional products very effective components of awards and recognition programs. It turns out that 75 percent of respondents who currently have rewards and recognition programs in place report using promotional products in those programs. And 72 percent of those respondents stated that promotional products are either “effective” or “extremely effective” in motivating, rewarding and recognizing employees.

So, what are the most popular employee recognition programs?
Employee Service Awards — used by 62 percent of respondents
Anniversary Recognition Programs — used by 54 percent of respondents
Motivating Specific Behaviors — used by 43 percent of respondents
Employee Referral Programs — used by 30 percent of respondents
Improving Teamwork — used by 28 percent of respondents
Reinforcing Organizational Values — used by 27 percent of respondents
Programs Involving Exceeding Sales Targets — used by 25 percent of respondents

People will forget what you say, but they will never forget how you made them feel. Creating an efficient and collaborative work environment where employees feel involved and motivated is critical to the success of internal marketing. Promotional products serve as a personal and tangible recognition of an employee’s contributions and help address some of the key challenges faced by corporate America related to employee engagement, communications and interdepartmental integration. Incentives are especially effective in an era when media clutter makes it difficult to communicate with one’s own employees.

The three most commonly used promotional products in award and recognition programs are:
Recognition awards, such as plaques and pins.
Wearables, including T-shirts, golf shirts and logoed shirts
Writing instruments, including pens

The top five ways in which HR professionals measure the success of the use of promotional products in their rewards and recognition programs are:
43 percent of HR professionals use employee surveys
35 percent track employee turnover
29 percent track productivity
26 percent track employee attendance
22 percent track sales growth

Promotional products are the only way to make a sensible — and memorable — impression.
By implementing incentives programs, companies will not only improve their workplaces but it will improve their bottom line.

Source: http://www.corporatelogo.com/articles/sales-strategies/unlocking-the-power-of-incentives.html