Staff incentives - Give and you will receive

If you ask your employees what their job means to them and their answer is only ‘a way to earn money’, you certainly have something to be worried about. An employee’s commitment to their job and organisation is a determining factor of success, yet employers seldom recognise and implement the tools that bolster the level of employee commitment.

While most employers understand that an investment in employees will foster rational commitment, that is, that employees will repay the organisation with diligence and loyalty, what employers often overlook is the emotional commitment.

Interestingly, however, experts believe that giving incentives – such as travel, incentive activities, cash incentives and gift cheques – is part of employee motivation and retention programs that work on the psychological level and therefore create a greater, more positive impact on the employees’ minds.

 

 

In Singapore, staff incentive programs are pervasively being used as effective strategic tools to encourage employee retention and attract the right talents to the organisation, according to Simeon Chan, manager, Gift Card, Network For Electronic Transfers, Singapore. “There’s a modern inclination for savvy organisations to lean towards incentives that combine both emotional and functional appeal, leading to a stronger workforce engagement. Good HR practitioners could introduce programs that drive employees to and beyond the self esteem and self-actualisation level [of Maslow’s hierarchy of needs], in the direction of the transcendence level.”

These programs, Chan says, encourage employees to move beyond self interest, be proactive and passionate in helping others [hence creating organisational and team dynamics] in achieving the company’s and individual goals in a holistic and synergistic way. The critical success is therefore in the designing of criterion-based incentives and recognition program that fit the organisation’s unique culture and workforce disposition, adds Chan.

Fanny Lai, executive director, Singapore Zoo & Night Safari agrees with Chan. “Paying employees for their performances is the basic practice for all organisations. Now more companies are coming out with more exciting incentive programs [which may include monetary incentives, trips, profit sharing, stock options, etc]as a measure to retain star performers, as they are key to the future growth of the company.”

 

 

However, Lai points out that some of the challenges lie in structuring the incentive programs that could be potentially attractive to key talents. “In order to identify the incentive program, the company’s business goals and model must be clearly defined as a way for key talents to recognise and contribute directly or indirectly to the growth of the company. To encourage key talents to continuously contribute to growth, the incentive set must be sustainable.”

Chan, however, says that organisations are confronted with the dilemma of how best to reward employees with an incentive that employees would find appealing, and yet is personable and morale boosting. “By force of habit and perhaps due to time constraints, the typical organisation usually relies on the cash incentives or a silver plaque to show appreciation to employees and stakeholders. However being extrinsic in nature, these incentives may not hold long-term value.”

One way to get around this jaded approach is for HR practitioners to tap into the employees’ intrinsic motivational attributes, and match an incentive to the desired attitude or performance, he suggests. This approach of positive reinforcement would naturally produce a favourable behavioural change that is translated into action. The employee would be inspired to do a good job, produce quality products, and take pride in their work. Besides, it would also spin off social reinforcement amongst co-workers whom observe, recognise and adopt behaviour that is rewarded positively, he adds.

Moreover, experts observe that with the pressure and focus on business competition, organisations sometimes neglect the importance of internal communication.

“A consistent and systematic approach must be taken to plan and implement a sustainable and attractive staff incentive programme. HR champions need to communicate, obtain buy-in from the stakeholders and actualise the promise in order to reap the results intended. For example in the rewarding of employee with a gift; exponential gains can be obtained if the gift carries a personal touch, is equitable, as well as creates emotional affinity that fosters a sense of belonging with the organisation,” Chan notes.

Demonstrating that your company truly appreciates their contributions would retain your best employees and strengthen the backbone of your organisation. In a localised context, future staff incentive programmes may do well to address employees’ concern on rising healthcare cost, modifying and including policies that endorse employability of an aging workforce, feels Chan. “To capitalise on organisation’s talents is definitely not an easy feat. Appropriate use of the carrot rather that the stick would go a long way in creating a culture of fulfilling workforce partnership.”

 

 

Following a global re-branding, Manpower Services Australia called upon The MotivAction Group to deliver a 12-month award and recognition scheme that would improve service delivery and sales performance by encouraging behaviour around Manpower’s global values and brand attributes. The scheme needed to engage 700 employees across Australia and New Zealand.

 

The solution was Manpower Shout! – a peer to peer award and recognition scheme that gives everyone at Manpower the ability to instantly recognise the behaviour of their colleagues. Every quarter each employee receives a Shout! Recognition Chequebook which acts as a communications tool and enables everyone to recognise each other up, down and across the organisation.

 

A duplicate of every recognition cheque is posted to an easily accessible collection point throughout the organisation and each month there is a live draw. Various awards are won monthly, quarterly and annually and range from store vouchers, full day experiences through to year end overseas trips.

 

Information on the number and type of recognitions being made is summarised, evaluated and reported on a monthly basis. This information allows Manpower to continually evaluate how the brand attributes are understood and applied.

 

“We’re well on the way to achieving an engaged and expert workforce within Manpower, with more than 1,000 recognitions generated in just over three months. This has translated into an increase in employee motivational levels on the one hand, and improved service levels to our clients on the other,” says Varina Nissen, MD, Manpower Australia/New Zealand.