8 BENEFITS OF INCENTIVES IN THE WORKPLACE

benefits of incentive

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The benefits of incentives to a business or an organization are most times tied to the reasons behind the incentives and the culture of the business or organization. Most business managers and owners have come to realize “thank you” alone is not enough for most employees.

According to research by Genesis Associates in 2018, 85% of the workers felt more motivated when they had an incentive, and 75% of the workers also said the workplace was very good in an incentive period.

Before coming up or designing an incentive system, the business and its employees need to know what it wants to achieve, and the associated limitations. These factors would drive the benefits that would be derived from the incentives.

Do you know incentives can be monetary or non-monetary?

·       Monetary (Sales commissions, Cash reward, Outstation allowance, e.t.c.)

·       Non-monetary (Extra time off, Fairness, Dress down days, Conducive environment e.t.c)

THE BENEFITS OF INCENTIVES IN THE WORKPLACE

1.     It improves employees’ morale.

2.     Employees are motivated to speak more about your company and brand.

3.     Incentives are used to drive more sales.

4.     It boosts employees’ productivity.

5.     Fostering bonding and teamwork.

6.     Incentives are also used as an employee retention strategy.

7.     It leads to increased employment and retention of quality and loyal staff.

8.     It attracts and aids in identifying quality employees.

From the above, the benefits of incentives can’t be exhausted enough. 

Conclusively, whichever incentive style the business comes up with, it should ensure it is transparent, fair, and understood by all parties involved.

REFERENCE: Sage, Incentive Research Foundation, Genesis Associates, Business News Daily, Iconixx

READ ALSO: PERFORMANCE APPRAISALS: 12 PROBLEMS AND BENEFITS

Tijani Olayiwola Ahmed: