Incentive is defined as something that induces action or motivates effort. Programs that involve departments or employee groups can be fun and satisfying while at the same time achieving solid company goals.
When a well designed incentive plan is launched in a business today there are many long-term benefits. They include the ability to change a behavior, or to improve a specific area in the marketing plan. To advance employee performance in a positive manner can be one of the most difficult challenges for management. To have employees that display excellence in their work and show accomplishments helps business acquire increased, or higher-value business. These are traits that deserve praise, recognition and reward. There is a direct correlation in the reaching of a stated objective and the understanding of the program's goals, the system and mechanics of scoring and supporting materials. Incentive programs can build new customers for the business as well as long-term loyalty. This is one of the main reasons that incentive programs are not costly - they are a way of improving your bottom line.
From the employee's point of view, incentive programs are great because they receive recognition and a tangible benefit. Incentive programs make the work environment fun and exciting. Productivity increases and customer problems decrease as a result of a higher quality of service and support.
These plans can be established and operated for a short time to improve productivity or a specific work routine. Incentive strategies can improve teamwork or remove bad work habits. The benefit to the worker is improved working conditions, and the recognition when the objectives are met.
Surveys indicate that customers do more business with companies that have some form of a customer-rewards program. Another customer ‘Incentive Program’ is based on loyalty. A well executed customer loyalty program can deliver a substantial array of strategic benefits.
Many companies are partnering up with other businesses in different markets to offer incentives to customers for buying product or services at one store, and using the incentive at another store. The customer receives points for each dollar spent, which can be redeemed for merchandise at their store or one of their participating partners store. Properly structured rewards programs are a great way to get repeat customers. Some examples of point-reward programs: Capital One, Quicksilver, CITI ThankYou, NFL Extra Points Visa, Plenti, and USAA Rewards.
Work is an important part of our lives; it gives us purpose and meaning. Work consumes much of our time and energy and it is important that we enjoy the experience. Build a TEAM where members on that team have a vested interest in the success of their teammates, and offer incentive programs where every member is rewarded when the team reaches a goal. Motivating meetings, social interaction before or after work, and laughter can turn a stressful, busy office into a fun place to work. A fun place to work starts with respect, and respect must be given from Management down. Asking for the worker's advice on possible solutions to problems makes the worker feel important.