Top tips for an effective incentive scheme
The UK could undoubtedly be more competitive if employers offered their employees more incentives, according to the MacLeod Report under its title ‘Engaging for Success’.
Produced by independent reviewers David MacLeod and Nita Clarke for the Department for Business Innovation and Skills, the report suggests that the relationship between employees and employers should be at the centre of any company’s business plan.
During their investigation they uncovered numerous examples of performance and profitability having been enhanced because of employee engagement, met many employees who felt their working lives had been transformed, and identified clear links between improving engagement and improved performance.
The report recognises that engagement has taken place when employees and employers value each other. Without that shared experience, businesses were missing a trick by failing to make the best of their competitive edge, according to one contributor. He says: “Engagement matters because people matter – they are your only competitive edge. It is people, not machines that will make the difference and drive the business.”
The tips for creating a successful incentive scheme are simple:
- it should have well-defined business objectives;
- it should be directly relevant to the business;
- its terms should be clear and unambiguous;
- it should form part of an overall business strategy;
- it should be supported by good internal communications and supportive training policies;
- it should be affordable;
- it should be proportionate to any other benefits offered;
- its administration should be simple and inexpensive;
- it should be meaningful and valuable to employees;
- its benefits and objectives should be clearly communicated;
- it must not discriminate against any of the employees it’s intended to cover;
- its results should be measured regularly;
- and its effectiveness should be reviewed at regular intervals.
