Incentives that Motivate

Many business owners believe that employees are completely motivated by money. Though money does motivate, it is what we would consider a short-term motivator and should be treated as such. There are many ways for employers to incentivize employees. The best way to get the most out of any incentive is to have a plan.

Monetary Incentives

*Raises – Monetary incentives whether they are bonuses or raises should be tied to specific goals. This assures accountability and keeps expectations in check. Raises should generally tie into a review process. If long-term goals are met, than a raise can be given. This method keeps a raise as a long-term motivator.

*Bonuses– a bonus is definitely a short-term motivator. It is used to boost output and drive a specific result. Bonuses are often used in sales but can also be used in many other aspects of the business. The key is to structure the bonus based on the expected end result. Do not waiver from the initial goal and by all means do not provide a bonus if the goal is missed. Even if a goal is missed by a small amount, rewarding based on a missed goal sends the wrong message.

Non-Monetary Incentives

*Promotions and Title Enhancements– are good incentives that leave a lasting impression on employees. It is good to coordinate promotions with additional responsibilities and expectations. All promotions or title enhancements do not have to be tied to a monetary raise but when major additional responsibilities are expected, a promotion without a raise may be a de-motivator.

*Praise– The biggest and easiest motivator (though can be the hardest for some) is periodic praise. Employees are driven by doing well and being a part of a team, they want to know they are appreciated and want to feel good about what they are doing. By providing true heartfelt appreciation to your employees you are not only driving them to continue to do great work but you are also giving them a sense of accomplishment and belonging.

There are many incentives and plans that can be put in place to motivate employees. Make sure any plan is just that “a plan.” Set realistic and obtainable goals to help drive employees to the desired end result, and be sure to incorporate employee praise into your routine, the return on your investment will be easily realized.

Frank Gurnee
VP, Channel Services, ExchangeDefender
(877) 546-0316 x4777
frank@ownwebnow.com