Each business has its own unique personality and flair, the nuances that make it special. But there are attributes common to businesses.
- Earn enough money to make a profit
- Attract and retain enough customers to accomplish A
- For over 5 million businesses in the USA, hire and retain the best talent to accomplish A & B
For non profits the goals simply have different names, donations instead of profit, members instead of customers and employees are the constant.
How to do the A,B,C’s becomes the question. In this blog we’ll discuss incentives and rewards as tools to accomplish your goals.
Let’s start with engagement.
What is engagement?
According to Forbes Employee engagement is the emotional commitment the employee has to the organization and its goals.
Engaged employees lead to better business outcomes. In fact, according to Towers Perrin research companies with engaged workers have 6% higher net profit margins, and according to Kenexa research engaged companies have five times higher shareholder returns over five years.
So, how do we engage employees?
Incentive/recognition programs are proven tools to improve employee engagement.
Organizations with recognition programs which are highly effective at enabling employee engagement had 31% lower voluntary turnover than organizations with ineffective recognition programs.” (Bersin by Deloitte,)
What is an incentive?
A thing that motivates or encourages one to do something.
What is a reward?
A thing given in recognition of one’s service, effort, or achievement.
In business the incentive is to increase widget production by 20%. If accomplished, The reward could be tickets to a sporting event or show.
Small and medium size businesses often feel overshadowed and in competition with the corporate goliaths. But much of what they do to stay on top is available to you on your scale rather than theirs.
Ask us about crafting an incentive program to fit your business needs and goals.