Rieva Lesonsky is a Columnist for Small Business Trends covering employment, retail trends and women in business. She is CEO of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Visit her blog, SmallBizDaily, to get the scoop on business trends and free TrendCast reports.
In the movie “Finding Forrester” the title character gives the young protagonist this advice regarding the girls he’s interested in – “An unexpected gift at an unexpected time.” I feel like you get an disproportionate benefit from bonuses that fit this criteria.
This will definitely boost your employees’ morale. With a higher morale, you’ll get higher productivity from them which will be beneficial for your business.
I guess it depends on the needs of the employees. It helps to ask them if you don’t know what to give them.
When I was an employee, I enjoyed getting bonuses. They were mostly sales-related, and did serve as an incentive to sell more.
Thanks for your informative article.
The Franchise King®
it’s surprising more employers don’t realize the value of “rewards” on employee productivity.
No need to take this on yourself! There are Incentive Professionals waiting to help you properly structure a program, pick the appropriate reward and recognition vehicle for your audience and help you manage the process. Hire a professional!
I find it interesting that the incentives mentioned as examples seem to be all monetary. While cash is a decent motivator it carries with it the potential to be forgotten once it is put in the wallet. Some call it the ‘Beer and Toilet paper’ effect of cash and gift cards. The cash used becomes more like regular pay (subject to taxes as well) and forgotten once it is used.
A well thought out merchandise award will offer far more value for the same dollars. Even a small gift will be remembered often. A business card holder? I have one that was a gift and that carries a brand name and I remember the circumstances of receiving it as a token of thanks for a job well done – 10 years later!
I did not see any value in this posting. All of the bonus programs mentioned are standard. I was hoping for some new information.
At IncentiveAmerica, our Spot Awards program allows managers to reward employees “on the spot” or through nominations which are approved by a nominations committee. The employees not only receive the award points online which can be redeemed for brand name merchandise in a catalog, but they also receive a nice personalized note (online) from the manager, thanking them for going above & beyond. The feedback we have received is that the employees appreciate both the gift and the note, as they both indicate that their extra effort is recognized and valued by the organization.
it’s interesting to know that you need to make your employees understand that achieving the goal will require the effort of the whole team. My brother is looking for ideas on how to improve employee efficiency, and a friend of ours recommended him an incentive program. I believe that incentive programs are the best way to let your employees know that if they work hard, they will get a reward besides their salary.