Employee incentive programmes can help revenue growth and business sustainability
28 Jun, 2024

 

Kinola Pather, CEO of Randgo

 

In today’s challenging business landscape, where success hinges on employee engagement as much as it does on customer satisfaction, staff incentive programmes have emerged as pivotal tools for fostering engagement, rewarding transformation, driving productivity, and nurturing both individual and organisational growth.

 

Here’s why every business should consider implementing an employee incentive programme:

 

They bring a yin-yang effect to play. A symbiotic relationship arises between motivated employees who feel that they are recognised and rewarded, and companies that see a positive impact on their bottom-line and, in turn, plough profits back into further incentives. In fact, Mckinsey quotes real-life examples that show how, when implemented and managed properly, employee incentive programmes can become self-sustaining in terms of costs before the first incentives are even paid out.

 

The numbers speak for themselves. Studies show that companies that implement incentive and rewards programmes see an average increase in productivity of 22%, while those that use incentives to recognise and reward employees for their contributions and achievements report higher levels of employee engagement (89%), retention (87%), and loyalty (85%) compared to those that do not use incentives. Harvard Business Review has found that companies that use incentives to reward employees for meeting specific goals or targets see an average increase in revenue of 44%.

 

There’s a programme for every business need. There’s no one-size-fits-all approach for employee incentivisation; it’s a diverse spectrum that must be tailored to motivate the specific group being targeted. After all, one company’s structure and strategic objectives are not the same as any other company’s.

 

Furthermore, while many perceive incentivisation as being solely geared towards sales teams, the reality is far more expansive. Every individual in an organisation plays a crucial role in driving bottom-line results. From sales representatives to HR, IT and finance teams, and everyone in between, each employee or team contributes in their own way to a company’s success. With this in mind, incentives should be tied to outcomes that are within a team’s grasp rather than distant outcomes.

 

Incentives tap into proven psychological principles. At its core, incentivisation intertwines behavioural change with reward systems. While research suggests that money isn’t the main motivator, current economic realities underscore its significance. But employees don’t just want higher compensation. They also want recognition from leadership for the work they accomplish and opportunities that allow them to  improve themselves, both personally and professionally.

 

You do not need to do it alone. A major South African logistics provider has seen a “measurable improvement” in performance since it implemented a custom programme that both rewards and recognises employee excellence against targeted metrics. Customer feedback and internal measurements are used to determine monthly and quarterly winners, who are recognised by management in the presence of their peers. The programme’s success can be attributed, in part, to the built-in feedback and adjustment loop that ensures it remains relevant and continues to meet its objectives.

 

Randgo works with clients across the spectrum to develop tailored employee and customer loyalty, reward and incentive programmes that are designed to positively impact on both behaviour and sentiment. Sourcing and supplying the physical rewards are just one aspect of what we do. As a first step, we work with our clients to assess their needs and goals, an then determine the most effective and cost-effective way to achieve these goals. From there, we can provide end-to-end support that includes internal marketing services to secure employee buy-in, as well as other specialist functions like tech capabilities and operational support.

 

Our most important advice is that short-term interventions will not create lasting behavioural change. Sustainable incentive programmes transcend immediate rewards to nurture long-term engagement and the formation of new habits. Whether through financial incentives, recognition schemes, or career development opportunities, employee rewards should – and can – encourage a culture of continuous improvement and achievement.

 

ENDS

 

 

Author

@Kinola Pather, Randgo
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