Creating Effective Performance Incentives
It is easy to think that bonuses and raises are enough to motivate employees. This might have been true in the past, but younger generations often care less about money than they do about stability, personal goals, and work culture. If you want to attract the best talent and keep them working at their best you have to think about their emotional well-being, not just their financial well-being. One way to approach this is to pro-vide performance incentives. Here are some tips to establish an effective performance incentive program for your employees.
1.Focus on Recognition
While monetary incentives such as bonuses can motivate employees, positive recognition can also be a powerful and sustainable way to motivate employees. People want to feel like they are doing their job well and contributing positively to their work-place. Teams that receive more positive feedback than negative feedback perform higher on average. If you want to motivate your team members to perform at their best focus on recognition first.
2. Customize Incentives
Especially at large companies, incentives work better if they are customized to meet the needs of diverse employees. For example, at a large company, many employees are looking for job security. Others might be looking for good benefits or status. It is important that the company offers different options. In a large company, singular incentives will only motivate part of the team.
3. Get to Know Your Team
You can customize incentives more effectively if you listen to your team members and learn what they want. One way to do this is to conduct surveys. You can also use focus groups. It is becoming increasingly difficult to predict what employees want. The best way to circumvent this issue is to simply ask them.
4. Connect Incentives to Achievements
Incentives only work if they are transparent. When employees receive an incentive, such as a party, they should know what they did to deserve it. If a specific goal was reached, tell them about it. This way they understand what they are doing right and will want to continue doing their best.
5. Think about Personal Motivations
Many employees care more about their own personal goals than they do about money and other material goals. Some employees might be looking to improve their skills. Others are looking to have more autonomy. Still others may be looking for opportunities to travel or experience some self-care. Try to shape incentives in a way that lets employees feel like they have some control over their career.
6. Take a Break from Routine
While some of your employees, thrive on a strict routine, many will appreciate a break in their schedule or a change of pace. A training day is one way to switch up the routine. Another way is to give the employees a to-do list and let them prioritize how and where to accomplish the list on their own. This will make the work feel less routine while also providing the employees with a greater sense of autonomy.
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