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Many managers don't understand the purpose of employee incentives in an organization. Why should you hand out incentive awards for something employees have already been paid to do?
Naysayers fail to comprehend that effective employee incentive programs involve rewarding only employees who exceed job expectations. What some people don't know is that recognizing and rewarding certain job outcomes can significantly contribute to a company's profitability.
Running a successful business basically means making sure that employees are successful in performing their jobs. Therefore, it makes good business sense to hire and promote competent individuals and to provide the necessary resources and support so employees can excel in their jobs.
It makes even more sense to take an additional management step. This step involves using employee motivation techniques that include tangible employee incentives. Employee incentive programs essentially are "structured motivational tools" that encourage employees to become more successful.
Reward and recognition programs get the best results if they consistently communicate this message: Employees who make the decision to change their work attitudes and behaviors and then take the necessary action to exceed performance standards will be rewarded for their achievements.
Well-constructed incentive programs always give employees a choice. Employees can choose to make a commitment to improve their job performance. Or they can sit on the sidelines and watch their fellow employees reap the rewards of improved performance.
The most common business objectives for implementing employee recognition programs include improving employee productivity, quality of work, customer satisfaction, employee safety, and sales.
Some employee incentive programs fail to meet organizational objectives because they do not adequately motivate employees. For example, an incentive program intended to increase customer satisfaction will not be successful if the appropriate job behaviors are not rewarded.
All aspects of an incentive program, therefore, should be designed to reinforce the types of job activities that contribute to the results that organizations want to achieve.