Reward Employees

“As administrator of the recognition program, I find the packages very convenient and easy to use. There is great flexibility with the purchase and ordering of the vacations, and I appreciate so many options. Our medical center has almost 6000 employees, and they are a diverse and varied group of people. The packages offer enough destinations and activities to meet the needs and interests of everyone who wins one. I would recommend the packages to any hospital administrator looking for an easy to use and desirable reward/incentive program.”

Laurel Olivia Orduna
Human Resources
Alta Bates Medical Center

The employee incentive programs that work the best have several factors in common. By incorporating each of these time-proven methods you can greatly increase your chances of success with your efforts.

1. Reward Quickly

Always provide as immediate gratification as possible. Just like when housebreaking a dog you can’t get good results unless you can reinforce the behavior “while caught in the act” the same holds true with employee rewards. If your program has a long term “grand prize” then you need to provide milestones in order to keep the general level of enthusiasm at its peak.

2. Never forget the 80/20 Rule.

It applies everywhere. Many companies make the mistake of consistently rewarding only the top producers. This is generally already done for salespeople through the compensation plan. Let’s face it: your top producers (20%) are already motivated and probably performing at near their peak performance anyway. In order to be effective in applying an incentive plan for employees you need to focus on the people that fall into the 50%-80% bracket. If you can create a program that goes deep enough with your rewards to include those people you can “move the pile” so to speak and dramatically effect your bottom line. In other words, a 20% improvement in 30% of your sales force will help your bottom line a lot more that trying to milk another 5% out of your top 20%.

3. Don’t make it too complicated.

Keep it simple. If you don’t have a simple reward system people will either give up on trying to participate altogether or they will spend valuable time calculating how close they are (or aren’t) to hitting the goal. It’s generally best to assign another employee that task of tracking the results and posting them daily or weekly.

4. Always Incorporate Recognition.

People love recognition. You don’t have to throw a banquet (though that’s not a bad idea if your budget can handle it) in order to recognize the achievers. Many times companies make the mistake of thinking that recognition will foster a sense of jealousy or resentment among employees. Handle the recognition event with tact and make it something where everyone feels appreciated even if it’s a simple as having a great local deli bring in lunch for everyone. It’s easier to see your co-worker get his award (when you didn't earn one) on a full stomach. :o)

5. Don’t use cash.

The biggest mistake employer’s make is to use cash as an incentive. It’s proven that even though most employees would choose cash when polled about their incentive preferences, the fact of the matter is that incentive programs are more effective when the award has a higher perceived value and can be associated with something a little more luxurious. If you give someone $500 the will spend it on bills and have absolutely no memory of it a year from now. Send their family on a three day getaway and they’ll talk about for years to come.

If you would like to take a couple of minutes to fill out a brief form Go to the Summit will be happy to provide you with some custom solutions geared specifically toward your needs within 24 hours.

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