Employee incentive reward and recognition programs are put in place to influence performance. We are asking participants to modify their behavior in order to reap the rewards we have offered.
Incentive reward programs can usually be funded by a self-liquidating budget. In other words, we structure the program to pay out only on performance. Therefore, the company isn't obligated to spend funds on awards that aren't earned. Sales incentive reward programs are built in this fashion. Additionally, recognition awards are a way of showing appreciation for a contribution after it has been made. There was no pre-set list of guidelines or behaviors that the participant was expected to follow. The company chooses to reinforce an act, behavior, or accomplishment based on its core values. By recognizing these individuals they are sending a message to the rest of the company that they endorse this behavior. Service programs, 2 year, 5 year, 10 year anniversary awards, developers or engineers hitting their upgrade release timetables, "atta boys" and "atta girls," etc.

Some Common Types of Employee Incentive Programs (and how to approach them)

1. Attendance

Absence and tardiness cost business in lost productivity and low morale. To address this issue, reward each employee who has no unexcused absences or tardiness at a frequency that reinforces positive action. You determine the amount of lost time accrued and the cost to the business. Set a realistic target of lost time to be gained back. Calculate the potential savings to the company as the desired target and then decide how much to invest in achieving this reduction. Divide the investment by the number of employees then divide by frequency to determine award issuance required and value. In achieving the goal, you'll have a tangible, measurable return on your investment.

2. Training

Training is the key factor to accomplish employee empowerment, involvement, improved quality and performance. Companies should promote and encourage full participation in this process. Each employee who participates in the training process can receive points for training attendance, using knowledge learned, or implementing objectives. You design further measurements against which individual employees earn points for applying the training received.

3. Suggestion

Employees are most often the best, most cost effective source for suggestions to improve business processes.
A fully effective suggestion program has three parts or steps:

• Each time an employee presents a qualified suggestion, they earn points in quantities you predetermine.
• If the suggestion is implemented, they earn yet more award points.
• After a specified period of time, the employee earns more points based on a specified percent of savings the company realizes through the suggestion.

4. Safety
5. Productivity
6. Customer Service / Quality
7. Recruiting
8. Lead Generation

Some Common Types of Employee Recognition Programs

1. Tenure/Length of Service/Anniversary
2. Employee of the Month/Year
3. On-The Spot Recognition
4. Birthday Observance

Employee Performance Objectives:

• Improve attendance
• Enhance customer satisfaction
• Reduce internal or external operating costs
• Increase employee productivity
• Aid in employee recruiting
• Solicit revenue generating ideas from employees
• Encourage employee process improvement ideas -quality
• Improve safety within organization

Recognition Objectives:

• Celebrate an employee birthday
• Recognize an employee's tenure with company
• Honor an employee for service to the community
• Reward a department for achieving its goal
• Reward all employees for reaching company objectives
• Reward employee of the month/year
• Celebrate a company's anniversary

The same steps are required to implement an Employee Incentive and Recognition Program as are required in the most effective Sales Incentive programs, i.e., follow these eight basic steps.

Fundamentals (8 Steps)

1. Target Audience/Participants (Who)
2. Program Objectives (What)
3. Timing/Duration (When)
4. Program Structure & Rules (How)
5. Budget
6. Awards
7. Administration
8. Communication & Promotion