A Closer Look at Employee Incentive Plans
Employee incentives can be a powerful way to improve productivity and boost morale. The NetSuite Incentive Management Module, which is an add-on to accounting software, is an ideal way to track incentive plans and make sure your employees get rewarded for their efforts. Could your Long Island or King of Prussia business benefit from adding employee incentive plans? Consider these benefits and strategies when implementing a plan.
Why are employee incentive plans effective?
Employee incentive plans work by using positive feedback to motivate employees, rather than using negative consequences to punish underperforming employees. By embracing rewards, companies give employees the ability to have their work assessed without the poor morale and stress associated with poor performance reports. Generating this kind of positive experience in the workplace can reduce turnover and absenteeism while also improving performance.
What are the characteristics of a successful incentive plan?
Incentive plans must be designed around clear, definable goals that are also achievable for employees. Goals should be challenging and inline with your corporate vision and identity, but they should also encourage employees to be inventive and to use their own ingenuity. Keep in mind that your incentives should also be inventive. Monetary rewards are not the only option, and in some cases, they may not even be the most valuable. Consider what your employees would value the most, and offer those things as incentives, such as the ability to work from home or the freedom to spend a certain number of hours per week on personal projects.
How can I implement an incentive program?
It’s crucial that any incentive program that you implement be carefully tracked, so that employees know where they stand and can see that you are following through with your end of the bargain. Adding the NetSuite Incentive Management Module to your accounting software lets you set up the right kind of incentive program for your business and track all of the related metrics, so you can see how employees are achieving rewards and how the program is improving your business’ productivity.