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Linda Formichelli

Guide to Employee Incentives

Keep your employees happy and they'll keep your customers happy

By Linda Formichelli, Freelance Writer

Numerous studies have shown that money alone won't fully motivate employees. Sure, moolah is important, but employees respond to recognition and other non-cash perks as well. An occasional pat on the back for a job well done goes a long way. Hiring mistakes cost thousands of dollars, so you can see why keeping your employees happy is key. Rewarding your employees helps you:
  1. Retain the best employees
  2. Reduce recruiting, hiring and training expenses
  3. Foster a positive environment
  4. Motivate your employees to give their all at work
  5. Keep your customers happy; after all, happy employees equal happy customers

Action Steps
The best contacts and resources to help you get it done


Create an employee motivation program

Decide what qualities you'd like to encourage -- punctuality, high sales volume, initiative, a high number of positive customer remarks -- and reward employees who show those qualities.
I recommend: Create a plan that ensures fairness, does not cause discord (as "employee of the month" programs often do), and doesn't create a sense of entitlement. Check out these tips for recognizing employees on About.com.

Just say thanks

A simple handwritten thank you card can make a huge impact on employees.
I recommend: At iPrint.com, you can design note cards that match your business stationery. You can also order fashionable blank notecards or thank you cards at Target. When writing the note be specific about what you're thanking the employee for and the impact it had on you and your business.

Take them away

Reward your employees with a trip away from the workplace.
I recommend: Organize a regular employee outing to a fun venue, such as a lake or beach. Travel America Inc. offers employee incentive travel programs; you can send your best employees to a sporting event, to a fun city like San Francisco or Orlando, or on a cruise. Bellwether Rewards offers travel rewards ranging from a hiking trip to an Alaskan cruise.

Give gift cards and certificates

Instead of guessing what your employees would like, give them gift cards.
I recommend: Drive or surf to a store like Barnes & Noble, Target, or Starbucks and pick up gift cards. Or buy cards from hundreds of merchants at GiftCertificates.com. If your employees commute to work, get them gas cards. You can purchase cards at your local gas station or get cards at SVM

Whaddaya want, a medal? Yes!

Give your top-performing employees an engraved award or a framed certificate boasting of their achievements.
I recommend: Big Sky Awards and JGE Awards and Promotions sell a wide variety of engravable awards. Office supply stores like Staples offer award certificates that you can run through your printer.

Hire someone to do it for you

Too busy to create an employee rewards program? Let someone else handle it for you.
I recommend: Loyaltyworks manages your employee rewards program and lets your employees choose from a list of brand-name products and travel rewards. CorporateRewards.com offers a small business option for businesses that need only a handful of rewards at a time.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Don't overdo the rewards or your employees will start to feel entitled to Friday lunches, gift cards and other goodies.
  • Let your customers do the work: When an employee goes above and beyond, ask your best customers to contact the employee or sign a card saying how much the employee has helped them.
  • To get even more rewards bang for your buck, congratulate the employee publicly, such as in the company newsletter or on the company Web site.
  • The reward is a great place to work: Don't regularly overwork your employees and make sure you know you value accomplishments, not face time.

The official source of Employee Incentives is
the Employee Incentive Programs page at Business.com

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Recommended Solution Providers

Callidus Software: Enterprise Incentive Management
Offers enterprise incentive management software.

SendCoffee: Incentive Appreciation Programs
Offers enterprise incentive management software.

Maritz Incentives: Sales Incentive Programs and Contests
Offers a wide range of sales incentive programs and contests to motivate a salesforce.

Parago: Employee Incentive Programs
Provides employee incentive program awards.

World Incentive Programs: Incentive Consultants
Offers a range of sales employee incentive programs and services.

Hinda Incentives: Incentive Programs
Provides employee incentive programs.

Big Sky Awards
Specializes in acrylic, glass, and crystal awards.

Loyalty Works
Features employee recognition and reward programs.

Best Sites to Learn More

SendCoffee: Incentive Appreciation Programs
Information on creating employee incentive programs. Includes sample programs.

Incentive Performance Center: Incentive Program Analysis
Information and resources on selecting effective employee incentive programs.

Information Week: Incentive Articles
Links to articles on sales incentive programs.

Management Help: Basics about Motivating Employees
Articles and resources for understanding employee motivation.

Office of Personell Management: Performance Management
Report on workforce performance management with some discussion of employee incentive and motivation issues.

Best Blogs and Forums

Business Know-How: Employee Management
Discussion of employee management topics, including employee incentives.

About.com: Human Resources Blog
Information and news on human resources, including information on motivation and incentive programs.

Tenderfoot Management: Employee Management Blog
Discussion of employee management. Includes employee incentive and motivation.



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What WorksTM for Compensation

Linda Formichelli

Employee Rewards and Promotions

Motivate employees by offering stock options, bonuses, vacations and more
Retaining talent is one key to growing a successful business. To do so, you need to reward them for great performance. By giving your employees special rewards, you can: Foster a positive, productive workplace. Encourage loyalty and a sense of ownership in your business Surprise employees without creating a feeling of entitlement. Keep your customers happy — because happier employees do better work. Read more

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