Types of Incentives and How They can Work for You

First off lets understand the general meaning and use of an incentive. An incentive is something, like a prize or desired action, that gets an employee to do more of whatever is/was encouraged by the employer. An example of this is a company throwing a pancake party on Mondays to help employees get through the day while promoting something like teamwork through out the departments of the company. While enjoying a free pancake breakfast, employers are able to conduct meetings and brief employees on the company as a whole.

Incentives can:

-Increase Productivity

-Encourage Teamwork

-Thank employees for doing their work well

-Keep employees happy

-Reward high achieving employees

-Build Trust with Employers

Thats the basics when it comes to creating and using incentives, but there are diffrent types of incentives!

Compensation incentives: Which can be raises, bonuses, profit sharing, signing bonus, and stock options. These are great incentives to help encourage loyalties to a company.

Recognition incentives: These incentives are actions like thanking, praising, presenting employees with a certificate of achievement, or announcing an accomplishment at a company meeting. This can be use for individuals or even in the use of the whole company. Recognizing the accomplishments of an employee or a whole group of employees with a simple thank you or a plaque for the accomplishment can go a long way in maintaining  great work and great relationships.

Rewards incentives: This one speaks for itself. This type of incentive includes monetary rewards, prizes, or even copay trips to help build moral or reward the company. This incentive usually coincides with the recognition incentives. Sometimes saying thank you isn’t enough, so saying thank you with a trip or prize can really drive home the point and help encourage the employee to continue contributing to the team.

Appreciation incentives: These are the type of incentives that were mentioned above. Parties, family gatherings for the employees like picnics, and just general celebrations for good employee work. Showing recognition through food and celebration is always a great go to.

Now that you know what incentives are and how you can use them to help your company continues to thrive, check out more of our site HERE.

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