how to build incentive programmex
Tips on How to Create Effective Employee Incentive Programs If you wish for your business to generate more profit than usual, you need to work on creating two types of incentive programs: one for your employees and another for your customers. COMMUNICATE – Use all the ways possible to know how your employees feel. Have them fill out evaluation forms, and encourage them to voice out their opinions. Make it a point to know them personally so that you’ll also be able to read between the lines. EXTERNAL AND INTRINSIC MOTIVATION – Both are important if you wish to properly motivate your employees. It’s impossible for one to stand without the other. External motivation can be provided by giving away cash and other similar incentives like travel packages and gift checks. Intrinsic motivation can be provided by establishing company loyalty, aligning their goals with that of the company, and giving them sincere compliments when they do something exceptionally well. A simple pat on the back can do wonders to a person’s self- esteem. MONITOR, MONITOR, MONITOR – Changes in an employee’s preferences may differ due to changes in the economy. Priorities may differ because of a change in lifestyle. Thus, it’s important to constantly monitor and evaluate the effectiveness of your program. SHORT TERM VERSUS LONG TERM BENEFITS – Be aware of which incentives would work better for motivating people to achieve short term goals and which ones would work for long- term goals. GIVE REWARDS INSTANTLY – If an employee does something well, give him the reward he deserves immediately. Don’t delay because your employees might think you’re begrudging them of the reward they deserve. Tips on How to Create Effective Customer Incentive Programs KNOW YOUR TARGET MARKET – Are you sure you know what your target market is? Determine everything about them from general demographic factors like age, gender, income class, to the little but important details like which colors or designs they prefer and so forth. COMMUNICATE – Again, do everything you can to know what’s on your customers’ mind. Have them fill out survey forms, and to make sure that they’ll answer these, give them incentives to do so. Keep in mind that although you truly need to spend money for both incentive programs to work, you don’t need to spend a lot because big capital doesn’t necessarily equate with effectiveness. Creativity and resourcefulness still counts so it’s definitely possible to have a successful incentive program without denting your company’s pockets too much. REWARD CUSTOMER LOYALTY – Know who your loyal customers are. And when you’ve identified them properly, make sure that you reward them accordingly. Let them know that you’re aware of their loyalty to your company and that you’re giving them a reward because you appreciate it. GIVING AWAY REBATES – Be careful when using rebates as an incentive strategy for your customers. Due to numerous controversies surrounding rebates, more and more consumers are feeling discouraged and reluctant to take advantage of rebates. If and when you do use them to encourage customers to patronize your products or services, make sure that you use a simplified process for your customers to redeem their reward: don’t dangle a carrot if you don’t plan to give it away in the first place. GIVING AWAY PROMOTIONAL PRODUCTS – Promotional products are always welcomed by all kinds of customers. Be sure, however, that you give them something useful – even if it’s only in the aesthetic sense. If you skimp on the costs and design, your incentive strategy might end up backfiring on you. Top 7 Ways To Develop An Incentive Program 1. Focus on the desired behavior needed or the goal of the program. Begin with a clear, briefly-stated objective. Identify what goal/objective needs to be accomplished, for example: improved attendance, longevity, reduced accidents, etc. The objectives must be specific, simple, and obtainable. 2. Select an implementation team. Before advancing, set up a committee of employees to obtain recommendations from the people who actually will be affected by the recognition effort. It is important to bring people in from all levels of the organization. Use an outside expert if necessary to facilitate the process. Insure the team helps to set the goals and performance factors and are in a position to report any obstacles to improvement. 3. Outline a strategy. Build the foundation of the incentive program carefully. Decide on the methodology to be used. Focus on and detail who is the target audience, and anyone else who will be affected by the program. Decide if the program is going to be employee or management driven. Employee driven programs are the best and easiest to carry out. 4. Decide on the budget. Insure there are adequate resources available before starting the program. A program involving sales personnel will be different and usually costs more money. 5. Set goals. Establish quantifiable and qualitative goals that can be measured. Try to keep it as simple as possible. The more complicated, the likely this effort will fail. The goals need to be fair and reachable for the target group. 6. Pick the type of recognition or award. It is important to select the correct award. The power and influence of the award/recognition is minimized if the individual does not care about receiving it. Spend time discussing with the target group and select an award within the budget framework. You may select several types of awards/recognition and allow the winners to choose. 7. Develop a communication strategy. Most programs fail due to poor communication. How will people know about the program? Decide what form(s) of media to use such as a newsletter, email, a brochure or in new employee orientation materials? Decide how to remind people through the life-cycle of the program. 8. Implement the program. The best programs are those that the employees run themselves. On the other hand, management-directed programs usually take more energy and enthusiasm to carry out the program. After a couple months, time requirements are reduced. The target group will need consistent and clear communication on the results and measurement of the targeted behavior and performance. o Create a meaningful presentation strategy. The presentation strategy is critical to the program’s overall success. The best planning can fail miserably if the presentation strategy is poorly executed. Decide on either a formal or informal presentation. Be creative and award recipients with as much fanfare as possible. Involve top executives in the presentation strategy. o Improve and change the program. The implementation team’s job is not over until it evaluates the program. Did it achieve its objectives and goals? Were the participants motivated to change their behavior? All incentive programs have a limited lifetime. Begin planning for the next program. Incentives schemes that work are a combination of reward, recognition and real-time feedback. • Yes, reward is about the financial element – but encompasses more than just cash; • Then recognition is about staff knowing that they are doing a good job and feeling valued as a result; • And finally, real-time feedback provides information to agents and teams so that they know how they are performing and what good things will happen to them if they raise their game – right here, right now! So for an incentive scheme to be successful it needs to address all three factors. Let’s look at some real life examples. How to build Incentive Programs o 1 Define the incentive program's objectives. Decide what you hope to accomplish with the incentive campaign. Include measurable, quantifiable results. o 2 Determine a budget. Include promotional materials, prizes and administration costs. o 3 Develop the program guidelines. Form a committee and develop the program in house or hire an incentive company. Outline the purpose of the program, participation guidelines, entry process, timeline and rewards. o 4 Create promotional materials. Make posters, flyers, email announcements, a brochure and special section on the company's employee website. Ensure that the materials are attractive, interesting and informative. The key is to catch everyone's attention and generate interest in the employee incentive program. o 5 Kick off the program. Chose the methods that best fit your company's location and demographics. When all employees work at a local facility, use posters, flyers, emails and decorations. For a company with off-site employees throughout the country or world, use email and the employee website. Make a big deal out of the kick off to generate excitement. Send teaser announcements that lead up to the big launch. o 6 Manage the program. Follow the program's timeline to evaluate employee progress and communicate updates. When the program concludes, do a wrap up to communicate the result and thank participants. Tips & Warnings • Assign one person to manage the employee incentive program to ensure consistent administration. • Be flexible. If this is your first time running an employee incentive program you are likely to encounter bumps along the way. Take note of the things that don't work well so you can improve your next incentive program. • Don't drop the ball when managing your employee incentive program. Failure to communicate the program's status will de-motivate employees and ruin your program. • Not all employees will want to participate in your employee incentive program. There will even be people who grumble and criticize your efforts. Don't let it get you down. You won't be able to motivate everyone, so focus on the positive outcomes. . So for an incentive scheme to be successful it needs to address all three factors. Let’s look at some real life examples. How to build Incentive. the back can do wonders to a person’s self- esteem. MONITOR, MONITOR, MONITOR – Changes in an employee’s preferences may differ due to changes in the economy.