Incentive Dos and Don’ts for Your Company

Company incentive programs are intended to keep employees motivated and engage them in their own performance. However, if they are not executed carefully, the reward system can result in jealousy among staff and decreased performance.

When planning incentives for your work staff, you need to consider a myriad of factors to avoid workers ignoring safety or other corporate rules to reach unreasonable sales or performance goals. The goals should be challenging but attainable with the reward gratifying.

To maintain fairness and equity with your incentive program, set up key performance indicators (KPIs) to evaluate employee’s progress and valuation adequately. These metrics will help you drive the success of your program but also company milestones. Consult this list of dos and don’ts when incentivizing your staff.

Incentive Dos

The first thing to do is to know your audience. If your staff is replete with millennials, they may appreciate vintage 90s swag rather than cash rewards or extra money in their 401k. If your workforce is young, hip and the company based near water, consider giving water sports gear or ski jet rentals as incentives. Make incentivizing fun for your whole organization.

Do remember to inform all employees about the rewards program. Make sure you stick to a regular schedule and operate with fairness and equality when doling out incentives. Ensure your incentives are goal-oriented and measurable. Involve your employees in choosing rewards that are meaningful to them. Consider their input when devising the program; they may have great ideas for performance indicators and goals as well.

Make rewards frequent enough to keep everyone motivated. Instead of just an annual bonus, build in daily, weekly and monthly incentives as well. Structure the program so that you can give many small incentives with more substantial rewards less often. For example, when the team reaches a sales goal, hand out company sweatshirts, mugs or other logo-decorated swag and when a particular employee is chosen for his or her annual contribution, perhaps a cash bonus makes sense.

Base rewards on peer input and not just management-focused goals. Letting your team pick the best of the group helps to build respect and teamwork within your organization. Recognition from peers is sometimes even more rewarding than from top level management. Plus, your employees know each other much better than managers do and might be aware of performance improvements that you may not know of.  

Incentive Don’ts

First, don’t forget about the budget. When you build incentives into your company culture, factor in the cost of living and staff growth and make sure you can easily afford it. Don’t make the goals so easy that everyone achieves them, and you have to pay out, leaving nothing for the future.

Don’t offer “one size fits all” rewards — have options. Some employees might like swag and others might like an Amazon gift card instead. Variety can also ensure you are motivating your whole team, not just a select few. Don’t forget that you want your staff to work as a team so don’t create a rewards program that has everyone out for themselves. Team goals are good too, then the whole team wins the reward.

Don’t give inappropriate or unsafe items like e-cigarettes that are dangerous to your health and promotes a bad habit. Don’t set up programs based on one person’s opinion, such as an “employee of the month” where a manager chooses. Instead, use KPIs to evaluate all employees equally and know precisely what you are rewarding.

Don’t ignore your best people, be sure to incentivize them properly when they reach their goals. If everyone gets the same bonus and your top performers have been working harder than most, they will see it as an insult and feel unappreciated. This one misstep can cost you great employee assets, and it will actually hurt motivation in the long run.

Final Thoughts on Incentive Programs

You should reevaluate your incentive program each year. As the business grows, KPIs and other goals will change too, and the program should change to reflect this growth. Be careful not to use incentives in place of a proper salary.

The key to a successful incentive system is communication. Make sure all levels of management understand the program thoroughly and then have them communicate it to the rest of the staff working for them. Clearly spell out the expectations of the plan before implementing it. If no one understand the program, they won’t use it.

During the planning stages, it is important to discuss as a company what your purpose is for incentivizing your workforce. Once you know your own goals, it will be easier to devise milestones and rewards that are meaningful. Have a strategic plan rather than a vague notion of why it makes sense. Your incentive program should motivate and encourage your workers to strive to do their best.

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3 Must-Have Sections of a Great Employee Handbook

Does your employee handbook include these 3 sections? Don’t miss out on these must-haves!

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The hidden potential of your employee handbook

Employee handbook  is the cornerstone document of every company.

This document usually consists of a company’s policies. Unfortunately, too often this valuable document contains ONLY policies, rules and regulations.

While this is useful, an employee handbook has a much greater potential. Instead of a document full of prohibitions, you can easily turn it into an engaging and useful document your employees will read, know and love. Read on to find out how to achieve this goal!

3 main mistakes of your employee handbook

Most employee handbooks make the same 3 mistakes:

Mistake #1:

They are written in a formal tone of voice with lots of legal and technical terms which regular employees can hardly grasp.  

Mistake#2:

Most employee handbooks focus on company’s policies and provide just a brief introduction to the company if at all).

Mistake #3:

Most employee handbooks state only the company’s expectations from employees and not the other way round.

3 main sections your employee handbook is missing

In order to avoid the above stated 3 main mistakes of most employee handbooks, make sure that your employee handbook includes the following 3 sections:

Section #1: Your company’s history, mission, vision and goals

Start your employee handbook with an extensive introduction to your company. Explain why your company was created, by whom and how it went on to become what it is today.

State your company’s mission, vision and goals in an inspiring, relatable and easy to understand language.

Section #2: Your company’s core values and culture  

The second section of your employee handbook should present your company’s core values and provide a glimpse into your company culture.

Include real-life photos of your workplace and your employees and present true stories which illustrate your desired workplace behavior.

Section #3: Employee benefits and perks

Finally, make sure to emphasize what your employees will get in return for following all your company’s policies, rules and regulations.

Accentuate all the benefits and perks your company offers to your employees. Also, present all the types of rewards and bonuses which will be awarded to your most deserving employees.  

The Majority of Americans Believe Their Workspace Negatively Impacts Their Well-being. Here’s How To Fix It.

From the worsening obesity epidemic to stress levels continuing to rise, American employees are struggling with their wellbeing. New research shows that a shocking 64% of American workers believe that their employer and workplace are having a negative or very negative impact on their wellbeing. But what’s behind this alarming statistic? And what can businesses do about it?

When it comes to employee wellness and the employee experience, we found that forward-thinking organizations are recognizing their employees’ needs and addressing them through dynamic benefits programs that support them in and outside of the workplace. Research shows that they’re reaping rewards for this. Bersin by Deloitte finds that organizations focused on creating a flexible and empowering workplace experience are five times more effective at improving employee engagement and retention than their peers. Meanwhile, businesses that do not tailor the employee experience to support their workers will find themselves left behind. Companies that do want to gain a competitive advantage should focus on establishing a wellness program, looking for ways to go beyond traditional benefits, and digitizing the HR process.

Establish a wellness program

Wellbeing initiatives can take many forms, but flexible wellness pots, which enable employees to spend a wellbeing allowance in a way that suits them, are gaining in popularity. In a world where employees increasingly wish to be recognized as individuals, this approach enables organizations to cater for their personal preferences, be they for a diet program or meditation class. Surveying employees can also help to determine which wellness benefits they would value most, gym memberships for example, or counseling services to support them in times of need.

Nick Lawry, Reward Manager at Virgin Management, believes that benefits have never been more vital in ensuring the wellbeing and peace of mind of employees, notably as part of offering a fantastic employee experience. From offering financial education through to super flexible working and unlimited annual leave, they try to give people the benefits and the flexibility that allow them to take control and make the choices that are best for them.

Go beyond traditional

Promoting holistic employee wellness demands going beyond just health and fitness benefits. Financial concerns can have a significant negative impact on the mental health of employees – one Harris poll found that 82% of employees are under financial stress. Our research also indicates that they would appreciate having personal goals in this area of their lives supported by their employers. Outside of salary and retirement plans, employees would like employers to support broader financial needs, such as saving to buy a home or debt management. When we consider that over half of US employees aspire to buy a home, but less than one in twenty benefits programs cater for this life goal, the opportunity for employers to seize the initiative and support this need is clear.

Having flexible benefits that are customized to employee life goals sets companies apart and transforms them into great places to work. Pharmaceutical innovators Mundipharma recognized this, and in addition to its core benefits, launched a new range aligned to its employees’ lifestyles and designed to give them more choice. This additional selection ‘pot’ of benefits, called “Flex”, achieved staggering results. Since the rollout of Flex, 96% of employees have ‘flexed’ their benefits and employee turnover has reduced by 45% within 18 months. Meanwhile, the time to fill job openings has reduced from 50-days on average to just 28. Perhaps most importantly, engagement also improved and 90% of those who flexed their benefits regularly said they’d still “be working here in a year’s time.”

Digitize the benefits process

Employees are looking for an employer who will make a positive impact on their day-to-day lives. For companies to accomplish this, HR departments need to spend more time on transformational activities that focus on culture, engagement and employer brand. HR can free up time for this by automating and digitizing more processes. This is one of the reasons adoption of global and regional shared service centers as well as global human capital management (HCM) and global benefits technology are all on the rise. Working with top companies around the globe, I’ve seen firsthand what having a more digitized, globally-driven strategy that’s better aligned with people and business strategy can do. Achieve this, and organizations won’t just reduce admin and improve compliance – they’ll see an increase in benefits engagement, which will domino into workplace engagement, and have a positive impact on how employees feel about their organizations.

Companies with an established global benefits strategy and technology that supports the implementation of this are three times more likely to see a reduction in administration errors and twice as likely to see a reduction in benefits overcharges. The implementation of those benefits further help the company’s bottom line by creating a positive, supportive working environment that reduces the current disconnect between employers and employees around the workplace experience, attracting and retaining staff for the long haul.

Ultimately, the best companies are creating amazing global strategies and have the technology in place to deliver these so that employees really feel the benefits. They’re happier and healthier and they enjoy being at work. This is what will keep them an engaged and productive member of your organization.

Conferences

5th Compensation & Benefits Summit 2017, Kuala Lumpur Malaysia — Press Release

Equip Global - 5th Compensation and Benefits Summit 2017, Kuala Lumpur Malaysia

Kuala Lumpur, July 20, 2017 — Establishing effective compensation and benefits packages in a competitive environment remains as a challenge for most of the organizations today. With the impact of economy crisis, globalization, increasing governmental regulations, rapid technological advances, it is the nightmare for all HR personnel to design and administer effective and cost-efficient compensation and benefit plans. HR, C&B, Rewards Professionals across organizations are struggling to come out with a remuneration package with flexible benefits that suit all employees and at the same time align with business goals. If this is not handled well, the organization will lose its market competitiveness and face talent attrition.

With thorough understanding of what all HR personnel are facing and looking at moving forward, the 5th Compensation & Benefits Summit 2017 have come out with this one-of-its kind summit to address the MOST DIFFICULT & COMPLICATED issues in managing employee compensation and benefits packages. Our expert speakers will share successful case studies on designing and implementing compensation & benefits plans and processes that allow you to manage costs, improve performance, attract, motivate and retain employees.

You should attend if you are Heads / Vice Presidents / Directors / Assistant Vice Presidents / Managers dealing with:

  • Compensation & Benefits
  • Human Resources
  • Performance & Rewards
  • Finance & Administration
  • Organizational Development
  • Talent Management/Development

4 Exclusive Workshops ALSO available in the 4-Day Summit programme.

Event Name: Compensation & Benefits Summit

Event Date: 13 – 16 November 2017

Event Location: Kuala Lumpur, Malaysia

Contact Email: enquiry@equip-global.com

Event Website: http://www.equip-global.com/compensation-and-benefits-summit

About Equip Global:

Equip Global

Equip Global is the trusted global provider of business intelligence through conferences and trainings to the world’s leading businesses, governments and institutions.

Our scale, scope, knowledge and reach allow us to put together conferences and trainings which address our clients’ problems that no one else can. Using our deep functional and industry expertise, strong connections across industries as well as breadth of geographical reach, our conferences and trainings constantly help our clients transform into sharper, smarter and more efficient enterprises.

Each time we develop a conference or training for our clients, we put ourselves in their shoes with their objectives in mind and invest significant amount of time and effort researching, unlocking and understanding their real challenges.

We strive to provide only tailored solutions that help our clients achieve true results with minimal effort. We do not believe in conferences and trainings that provide standard industry answers or theoretical knowledge. Inviting only leading practitioners and domain experts who can offer information that help solve our clients’ challenges , our conferences and trainings focus on providing only solutions that have met the concrete test of application and have proven to improve an organization’s productivity and performance. We know that custom solutions yield the greatest competitive advantage and value for our clients and always ensure that we are only providing our clients with information and connections that matter.

In a nutshell, Equip global conferences and trainings drive tangible bottom-line results whilst equipping our clients with the business connections that help you achieve long term success. We provide only what our clients need and want.


** EXCLUSIVE DISCOUNTS are available for Subscribers of The HR Tech Weekly. Email to enquiry@equip-global.com to find out more!

HR Predictions: Rethinking Employee Benefits in 2017

Paid Family Leave

Only a few weeks remain in 2016, and as we look to the next year, there is no denying it’s a truly dynamic time for HR professionals. We work in an environment that is constantly changing and filled with new opportunities to enhance the way we lead and manage our most important asset, our people.

Today, business leaders are faced with a challenge those who have come before them have never encountered – assimilating five different generations into today’s workforce and leading teams comprised of individuals with unique priorities, interests and expectations.

Generation Z is stepping foot into the workforce for the first time, millennials are settling down and starting families, and baby boomers are faced with the responsibility of caring for elderly family members. While the priorities may be different, the theme is the same: when you hire an employee, you employ the whole person, including their family, their health and their interests.

As we look to next year, the major HR trends I see will be surrounding rethinking employee benefits. Retirement benefits were en vogue across workplaces in the 80s, but today, employees are thinking less about the future and more about the now. Their mindset has shifted to how employers can help them maximize their time with family or to pursue individual experiences, as opposed to emphasizing retirement benefits and pensions.

Here’s how we anticipate that mindset shift will affect HR in 2017:

Paid Family Leave

Today, we’re realizing a gap in the family leave laws concerning who is covered and who is paid. The Family Medical Leave Act (FMLA) offers job protection, but it is unpaid and only offered for up to 12 weeks. Currently, only 12 percent of employees (via United States Department of Labor) have access to paid leave, which tends to be offered by technology and financial services companies as well as some businesses located in California and on the east coast.

An emerging trend across organizations that is gaining increased traction is placing more emphasis on paternity and family leave. Millennials who are starting families are pushing employers to acknowledge the importance a father plays in raising and bonding with their child, and on the flipside, Generation X and Baby Boomers are caring for ill family members and require additional leave to support their time away. California was the first state to implement paid family leave, which has also spread to the corporate level. Deloitte is now offering employees up to 16 weeks fully paid of family leave to support range of life events like maternity and paternity leave, elder care and aid for sick family members and partners.

Unlimited Vacation – The Ultimate Flexible Benefit

When surveyed, many employees reveal that a top benefit they look for when considering a role is the amount of vacation offered. Surprisingly, studies have shown that while employees earn 20 days off, the majority only use 16 of those days. Employees today are using a full work week less than they did in 2000, and it’s having a major impact. Work expectations and demanding schedules are causing employees to take less time. As a result, employees miss three notable events a year and only 38 percent of employees feel supported to take time off.

A handful of employers are trying to reverse this trend by offering flexible unlimited vacation opportunities for employees. Unlimited vacation empowers employees to decide what to do with their time off while ensuring that the necessary work is completed and the absence is not damaging. Experts analyzing this trend believe that employees are motivated not to let their peers down or to damage their own career by misusing the benefit. While unlimited vacation is not for every company or environment, look for more organizations to consider this benefit.

Flexible Hours

We’ve all experienced it – sick family members, an unexpected doctor’s appointment, or an emergency home repair. Life happens and employees are looking for employers to be cognizant of responsibilities outside of the office. I can’t recall an interview where I wasn’t asked about our company’s expectations concerning work time commitments and the flexibility we offer. The question for HR is how to encourage flexibility for employees and how to teach managers to embrace flexibility to attract the best talent. Consider implementing work from home or flexible hours policies to help employees balance work and home life.

Freelance Economy

A growing trend that will affect even more businesses in 2017 is the “gig” or freelance economy. Work or “freelance gigs” are being organized into a variety of arrangements that can easily be bid on by a variety of freelance or consulting positions. One out of three millennials currently freelance, and by 2020, the Bureau of Labor predicts that 40 percent of American workers will be independent contractors. In areas of specialized skills, those types of talent are looking for freelance opportunities and organizations will be tasked with offering the same type of flexible arrangements for employees that freelance positions receive.

While many trends are affecting the HR industry, we as leaders have a real opportunity to challenge the status quo to enhance our employees’ experience. How do we disrupt the typical routine? Emerging trends are driving us to look at the employee experience in new ways and to listen to consider our people in everything we do.

About the Author:

Karen Crone is Chief HR Officer at Human Capital Management company Paycor.

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