This blog is about incentive scheme
Incentives - such as performance-related bonuses - can help boost staff performance. The rewards usually relate to the achievement of certain goals, either personal, team or organisational, or a combination of all of these.
Perks are benefits given in addition to salary as a means of increasing satisfaction at work.
Pay is often the most important staff motivator and incentives and perks must not be seen as a substitute for a good pay scheme. However, they are not always expensive for business and some are tax free. See the information on incentive schemes for individuals on the Acas website - Opens in a new window.
Benefits to the business
An effective system of incentives could help:
persuade staff to join your business
retain existing staff
increase staff motivation, morale and loyalty
boost productivity
link individual and business performance
focus employees on achieving targets
build teamwork
Some incentives and perks may benefit your business indirectly, eg free health assessments may reduce absences.
Benefits to staff
Perks and incentives can form an attractive element of an employment package by:
enhancing the quality of working life
rewarding staff efforts
adding value to the employment contract
What makes effective schemes?
Perks and incentives must be affordable, transparent and appropriate to your business and the jobs they link to. It is worth introducing them after consulting with staff or unions.
You should look at whether other incentives will increase staff motivation. For example, in a sales environment an employer may wish to offer extra pay or benefits when targets are achieved.
Perks and incentives work best alongside good pay schemes and working conditions. They can be most successful when implemented with other good management practices, such as performance management, appraisals and appropriate communication and training programmes.
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