Incentivizing is a method of rewarding employees for their work, based on a comparison of work efficiency and remuneration. An essential issue in this area is the significant excess of wage growth over labor productivity that leads to a decrease in the incentive function of the salary. The system should give people a sense of confidence and security, include effective incentives and motivations, and ensure the process of reproduction.
Incentives for business can solve employees’ problems, satisfy their values, and be instruments of administrative influence. Apart from the prevalent material methods, there are a significant number of non-material approaches of rewarding motivated employees. These include various types of benefits, non-financial incentives, and activities (Prince et al., 2020). Employees who are well motivated achieve better results and trust their employer.
Before introducing any motivational programs for employees in an organization, the manager or HR must clearly define their goals and objectives. As a rule, the goal is to increase employees’ loyalty to the company and improve their performance. However, the list of tasks is more significant: first of all, it is the employees’ professional development. Some programs improve staff skills, address weaknesses, and enhance performance. (Prince et al., 2020). Achieving new skills should be encouraged: if an older employee did not know how to use a computer and learned to use it after a few months, this achievement should be noted.
Secondly, incentive programs help ensure the stability of employees. Staff turnover can be very damaging to business: beginners can work less efficiently than already experienced employees. Furthermore, vacancies that are always open create a bad reputation for the firm – people wonder why everyone leaves. A loyalty program should create a desire among employees to work in the firm as long as possible (Prince et al., 2020). Finally, stimulation allows employees to achieve the highest possible performance. An employee with a higher level of motivation produces better results.
In the face of rapidly changing business processes, motivation and incentive programs can and should be continually adjusted. An approach that has worked for some time may well stop working if some key parameters have changed. Therefore, to maintain the corporate spirit at a high level, managers and HR departments need to monitor market and labor trends, as well as innovations in the field of staff motivation.
Reference
Prince, N.R., Prince, J.B. & Kabst, R. (2020). National culture and incentives: Are incentive practices always good? Journal of World Business, 55(3), 1-13. Web.