Must-Have Tips for Creating an Employee Incentive Checklist
Incentives are the surest way to keep employees happy and productive. Whether in the form of periodic raises in their pay package or as additional perks, incentives have always motivated employees to improve on performance and achieve goals. However, incentives cannot be distributed at random or else they will fail to meet their purpose. Also, incentives have a financial implication on the business which necessitates additional pragmatism when distributing incentives. So, it’s important to relate tasks and goals with incentives so you may need some guidelines for creating an employee incentive checklist.
Steps to Developing an Inventive Checklist
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List Job Related Goals
Identify and define goals related with every job position. Every job position has its own domain, and you’ll need to determine the important goals to be achieved within that domain. For instance, the goal for a marketing executive may be to generate more sales while the goal of an executive on the production floor may be to increase production or cut down waste. When identifying goals, it’s important to see the goals are practically achievable, quantitatively definable and measurable in order to create an employee incentive checklist.
Identify Additional Qualifying Factors
While achieving goals is the number one priority, that alone may not be sufficient to justify an incentive for an employee. There may be some other factors that must be considered. For instance, an employee’s behavior at work, his punctuality, his attendance and how long he has been with the business are some other factors you might want to consider. So, list out all the other qualifying factors that must be met. Now here again, these factors may vary from one job position to another.
Research for Incentives
Keeping the financial budget in mind, put up a list of the possible incentives that can be given to the employees. This aspect is a little tricky and you’ll need to use your creative instincts to build a nice list. Every time you add a new incentive to your list, look for answers to the following questions:
- Does it fit well into the allocated budget?
- Will this incentive seem worthwhile to the employee?
- Will the incentive motivate the employee to improve his performance further?
- Does this incentive compare well with the incentives offered by competing employers?
Match-up Qualifying Factors and Incentives
When you have a comprehensive list of both the qualifying factors and the potential incentives, the next most important task is to match them up with each other. Again at this point it is important to keep the job position in mind. In some cases you may have to define different slabs for different incentives, like the incentive for making more than ten sales may be different from incentives for making more than twenty sales.
Reassess the Incentive Plan
When you have a complete list of incentives and have settled the eligibility criteria for each of the incentives, you need to reassess the incentive checklist. You could have participants from other functional departments have a look at the incentive plan and point out the deficiencies in it. Finally, when you’re done creating an employee incentive checklist you should have it displayed on the employee notice board so all the employees get to know how their performance will be rewarded.
References
More Business, Incentive Plan - https://www.morebusiness.com/running_your_business/management/incentiveplan.brc
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Image by: Sidharth Thakur
