People want to be rewarded in ways that make their effort seem worthwhile. In order to encourage better responses and performances, companies are eager to offer them rewards, but not all want to spend a lot of money making these incentive compensation plans a reality. On top of that, a single bonus check can be a good option for a single period of good work, but it won't encourage the same kind of ongoing, long term motivation that firms need to see in order to make their programs seem like a worthwhile return on investment. For those reasons and more, organizations often refer to alternative benefits in order to reward employees.
These resources can consist of options the organization already has available to it. Consider that most businesses are linked into the cloud these days, and companies have a built-in means of rewarding personnel right there. Instead of having a good worker come in to the office each day, companies can offer remote connections and work-from-home opportunities in exchange for satisfactory performances. Businesses may also have deals with certain health clubs, have special parties or allow personnel to travel to work-related conferences in other parts of the country in order to reward them for their time and effort. These options are less expensive or serve as a much greater return on investment than just offering monetary bonuses to people.
Buying employee loyalty
According to Crain's Chicago Business, firms should also consider offering personnel investments in the organization itself. By granting employees certain stock options, companies are increasing the liability that staff members have to the organization as a whole. Not only are their employers offering them a valuable asset, but recipients know that, if they want their stocks and shares to do well, they need to work harder in order to assist the business in bringing in more revenue.
The source stated that a large percentage of shareholders in corporate stakes have shifted from regular investors to members of the workforce. With almost 100 percent of all stock incentive compensation being delivered in the form of flexible options, organizations have managed to sink their employees even deeper into the business machine. This form of incentive compensation ensures better engagement and loyalty to the firm that rules whether personnel options will be lucrative or not. Because these resources usually take at least a decade to mature, organizations that make stock options a main facet of their incentive compensation programs can be certain that they can count on continued effort and excellence from all of their employees who participate in these options.