Organizations may be having a hard time with the economy, but still need to retain their talent and personnel. There are some options available that might help to provide employee incentive and retention, while still not breaking the company's bank.
Non-financial employee incentives rely on meeting the employee's goals that are not connected to money. For example, the employee’s job can provide the employee with social status and self worth. Non-monetary incentive programs may cater to the person’s psychological needs such as self-respect, sense of personal value and feeling worthwhile and productive.
Any organization can be creative in coming up with many ways, even ones that may seem trivial, to give incentives to their personnel. There are countless ways, small and large, to reward and motivate quality people. Some larger companies may have a little more capital and resources than smaller or start-up companies, but company size should not deter or limit management’s ideas in this regard.
Employee Psychological Incentives
One small example of a no-cost incentive can be a simple title change. People often measure themselves by what they do, and a new title (even if the pay is the same) can provide a boost to morale. It can almost be like a promotion without a raise. Think about how many office personnel are now “assistants” or even “coordinators” and not “secretaries.” They may perform the same tasks and same job duties, but it is a different and more important sounding title.
Expanding Job Duties and Education
With that, the opportunity to develop a career within the organization by increasing job responsibilities and autonomy can also have a positive effective on employee satisfaction. The employee may be interested in cross-training, “job rotation,” or transferring to another department, even if it’s only temporary. By doing so employees tend to have a greater understanding of the organization as a whole and how their job fits into it. Some companies go even further by offering employee exchanges, volunteering opportunities, and work sabbaticals.
Personal expansion opportunities can also be a way to give incentives to workers. Ways to do this may include educational opportunities or tuition reimbursement for employees wanting to learn about themselves and their job.
“Continuous learning,” is a process that allows the employee to comprehend their piece of the organizational pie and how it relates to the rest of the work being performed. Understanding their role in the organization is a benefit. Starbucks, for example, promotes it employees (partners as they call them) to learn about their products and customer service. One way Starbucks does this is by giving their partners a free pound of coffee each week to help them expand their wisdom and hands on experience of what the company sells.
Career Programs and Mentoring
To take it one step further, larger firms can also offer career path programs and opportunities for mentoring with more experienced senior personnel. The career paths that some employers offer may include formal education or training, employee tuition reimbursement, and online courses. The chance for the employee to grow and expand their job into a rewarding career can provide motivation for good performance.
One of Starbucks' potential career paths is to attain the status of “Coffee Master” by becoming a specialist in coffee. These Masters, in the black aprons, must be able to pass exams, as well as having received many hours of required training.
Another part of the of the career development program can include the use of mentors by the organization. A mentor is typically a more senior or experienced person helping to provide coaching and guidance to a lower level staff. A formal mentoring program has many benefits overall, and is a non-financial program that can offer employee incentive and support. Mentoring may be done with little or no cost to the company, and is a non-financial employee incentive that can encourage employee satisfaction and motivation.
Incentives from Other Employees and Managers
Employers can also do internal incentive programs to increase customer service and departmental harmony. One company introduced the Platinum Service Award Program (PSA). Managers were given cards to give out to any and all employees, even employees in different departments, when the employee did something above their normal job duty.
For example, if an employee received a thank you letter from a patient, or an employee went out of their way to assist another employee with an issue, they could receive a PSA. Furthermore, employees could give other employees PSAs by requesting them from a manager.
The cards were about the size of a business card. One side said Platinum Service Award, and the other side had the date, the name of the person who it was from, and the reason they were receiving it. Ultimately, the employee could “cash in” their PSAs for merchandise at the human resources department. Items they could get included mouse pads, coffee cups, and company logo t-shirts.
Another common program employers utilize is the Employee of the Month program. Different companies have different criteria, but it is a popular way to reward behavior. For example, some companies give the Employee of the Month gift cards, flowers, their picture on a plaque, or even a party. Depending on the company, Employee of the Month recipients may be nominated by the boss, or even a co-worker.
Long-term employment is also frequently rewarded with company parties for milestones of years worked. Employees may receive gifts, pins, flowers, etc. in recognition for their continued years of service. Moreover, if there is a company newsletter, employee happenings and promotions can be included there. Accolades from management and peers can help to encourage employee performance.
Additional incentive programs can be tailored to the business and industry. There is a construction firm that provides company hoodie jackets with “Safety Award” printed on them for employees with impeccable safety records. Furthermore, the company job line (which announces the following day’s work schedules and employee projects) will sometimes include employee announcements for a job well done, especially on high-profile, high-safety projects. Employees receive food certificates for completing work safely and passing safety tests with perfect scores.
Other Work Options Lead to Employee Satisfaction
Other new and exciting trends for employees, that are not directly related to pay, include flexible work schedules and telecommuting options. As workers seek balance in their lives, these changes provide some real benefits for the right job description and in the right situation. Flexible schedules can provide a positive experience for employees by allowing them some freedom for personal responsibilities. This also includes telecommuting options for jobs that are available through technology. Employees may have the option to complete assignments around their own schedules on a per-project basis, resulting in employee satisfaction.
Feedback as an Incentive
Lastly, one of the most cost-effective ways to give employee incentives is to provide performance feedback. As stated in Noe, Hollenbeck, Gerhart and Wright, “If employees are not made aware of how their performance is not meeting expectations, their performance will almost certainly not improve.”
Giving feedback, including positive feedback such as telling someone you appreciate their work, or that they've done a good job, can go far in giving incentive and motivation to an employee. This feedback need not be the regularly scheduled performance appraisal, but an ongoing communication. Recognizing good performance by praise can be effective at ensuring repeat performance of a job well done.
Individualizing the Employee
Managers should try to personalize incentives for each employee for maximum benefit. For example, some employees are more motivated by monetary gain (the traditional merit pay or performance pay scale), but others can be motivated by increased autonomy, personal feedback, and job promotions. Therefore, a manager should consider individual motivation and rewards when instituting incentive options for an employee. What works for one person, may not work for another, but employees like to know they are appreciated.
It Starts at the Top
Ensuring that the corporate culture truly follows the mission statement and company goals is important. The ideals and values must resonate from the top down. Having all employees parallel the company belief system is beneficial for any Performance Management System, which includes employee morale and satisfaction. Employee empowerment and involvement is a huge factor in company success and employee motivation and incentives.
Canadian Starbucks employee Francine Barodeyr states, “we are empowered to make each customer’s visit count." Employees tend to feel they want some input or control over their jobs. Consider that the employee turnover rate at Starbucks is120% less than the average for its niche. Additionally, Starbacks is reported to have an 82% job satisfaction rate compared to 50% for other employers per a Hewitt Associates Starbucks Partner View Survey. Finding ways to cultivate this corporate culture and employee empowerment is a win-win for the employer and the employee.
Recommendations to Management
Recommendations includes researching all different types of incentive programs available that can work within an organization’s culture and structure as much as possible. Reviewing the above programs can provide insight and ideas to fit employer’s needs and goals, while trying to contain cost for the organization. This is especially difficult right now, and all options should be reviewed before implementation.
However, some of the easiest and fastest incentives that can be started soon with little or no expense include:
- Review job titles and descriptions
- Promote personal development and mentoring (even if its informally)
- Review work schedule options if available
- Provide personal feedback on a regular basis, including upper management if possible
- Cultivate a positive corporate culture
Without providing employee incentives of any kind, the organization risks poor performance. The implications for management may mean not meeting department or organizational goals. The employer must rely on employee performance to meet overall profitability and company growth.
Sources
- Ferriss, Timothy. (2007) The 4-Hour Workweek (p. 48) NY: Crown Publishers.
- Forum for People Performance Management and Measurement: Incentive Programs retrieved on March 14, 2009
- Green, Thad. (2000). Motivation Management. Palo Alto, CA: Davies-Black.
- Human Resources Magazine, retrieved on March 14, 2009
- HR Focus (Vol. 2009 No.4) (April 2009), retrieved on March 14, 2009
- Kriegel, Robert J., Ph.D. (2002). How to Succeed in Business Without Working So Damn
- Hard (pp. 52-53). NY: Warner.
- Lobenstine, Margaret. (2006) The Renaissance Soul (pp. 103-116 & 167-174). NY: Broadway.
- Many Employers Uncertain About Providing Health Benefits, Workforce Management retrieved March 14, 2009
- Michelli, Joseph A. (2007). The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary. NY: McGraw-Hill
- Noe, Raymond A., Hollenbeck, John R., Gerhart, Barry, and Wright, Patrick M. (2008) Human Resource Management Gaining A Competitive Advantage. NY: McGraw-Hill Irwin.
- O’Hara, Nancy. (2001) Work from the Inside Out: 7 Steps to Loving What You Do. NY: Three Rivers Press.
- State Employee Incentive Programs retrieved on March 14, 2009
