19 July 2018

The benefits of incentive schemes

Incentive schemes have a major impact on Motivation, The performance and commitment of employees. Any learning process demonstrates that behaviour that is rewarded is repeated. It is common to see that people work harder and with greater dedication when they know that their effort will have a direct impact in the form of time off, financial compensation, or non-monetary incentives.However, this This is not the only advantage of the incentive schemes, since in companies where this system is used, which in Spain are 86 % (RemicaEmployment).

Benefits of incentive schemes

Healthy competitionThe desire to win is inherent in human beings. We like to compete and be victorious, and incentive programmes tap into this desire, redirecting it towards the achievement of clearly defined objectives (business goals that the employee commits to) and towards a increased camaraderie (which is achieved when incentive programmes are linked to short, medium, and long-term goals, both individual and collective). The result is healthy competition that benefits the organisation and individuals, since, as results are achieved, a favourable and positive climate is built.
Improved employee retention Individual happiness and satisfaction increase with a better work-life balance, greater autonomy granted to employees, and a stronger sense of control over their lives. Incentive programmes provide employees with a sense of control over their earnings, leading to very positive consequences for their health and that of the organisation. The result is a workforce loyal to the company and its objectives, which identifies with the principles and values of the company for which it works. Problems such as turnover and absenteeism are minimised, and at the same time, the workforce becomes a highly effective magnet for attracting talent. The presence of a corporate incentive programme motivates 66% of employees to stay on the job. (BlackHawkNetwork).
Increased consumer satisfaction The treatment that customers receive from employees ultimately proves to be decisive in building their loyalty. When the level of work motivation is low, customer service is affected. Thus, while, according to data from a recent study published in RemicaEmployment, the most satisfied and engaged employees can increase consumer loyalty by 50%; when there are no incentive programmes in place, achievements are not recognised, or there is inadequate work-life balance, service deteriorates and can lead to the loss of clients. As reported by the same study, in this latter case, 68% of buyers would rather go to the competition than buy a product from the company again.a.