People like to be rewarded for doing hard work. Some feel that performing tasks well and completing them in a timely fashion should merit additional rewards, too. When it comes to giving these personnel what they want, HR leaders and other managers sometimes struggle to determine how best to show their appreciation. Deciding on incentive compensation management programs should focus on offering the bonuses that people want.
Finding the rewards people want
Though the momentum in incentive compensation is swinging toward more modern benefits these days, such as wellness programs and alternative bonus strategies, staff members still like the traditional ways companies tend to show appreciation – money.
Advertising Age reported that a study by the Association of National Advertisers (ANA) asked its members what kinds of incentive compensation they like to receive for their hard work. The source showed that payment was still a popular option among many firms, but what's changing is how employees earn these bonuses. As the ANA pointed out, an increasing percentage of businesses are using performance-based calculations to reward personnel for how well they're doing with productivity, engagement and client retention.
The way agencies pay their sales staff is also evolving, the source stated. More than half of all respondents said they get direct bonuses, whereas others see their incentive compensation as payments that help them earn back their own processing fees, monies deducted from their initial sale as a means of generating revenue for their employers.
Changing reward strategies
While it's true that the majority of personnel prefer monetary incentive compensation, the way businesses offer these bonuses is changing. Whereas some companies will simply add more cash to the next paycheck a staff member gets, others are finding long term ways of getting personnel to invest in themselves and the organization.
A study by the Financial Executives Research Foundation found that more than 80 percent of CFOs and other high-ranking staffers are given stock options. This form of incentive compensation management gives administrators a more stable form of reward that will keep paying them for years to come. It also ensures that personnel will become more deeply invested in the company, both personally and financially, since the success of the business will mean better returns on stocks in the future. Combining the best interests of the employer and the employee in this way ensures better sales and ongoing improvement for everyone involved.