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10 most popular incentives that firms offer
By Zoya Anna Thomas | Wednesday, 17 March 2010, 22:29 Hrs |
17 Comments
Rewards and Recognition - One of the most valued of all employee incentives includes the peer programs, or in other words awarding performance through recognition. In 2008, one of India's top IT firms, Infosys doled out iPods and Xbox players to its top performers as an incentive.
"I can remember one policy that I had rolled out at one of my previous organizations. It was called Peer Program. This is basically a recognition program where the awards were scattered in different phases. Some of the awards that were covered in this program included, on the spot award, best debutant award, best team player award (quarterly award), and best employee of the year award," says Honnavar. These awards are given to employees who are nominated by the team manager under specific criteria. Nominations of course had to be justified along with proof of work. The awards were shoppers stop vouchers of various denominations of
250, 500, 750 and so on, along with certificates. Holiday Sponsorship - "But it is the 'Employee of the Year Award' that is the most sought after incentive - A two nights and three days package tour to Dubai," adds Honnavar. This serves not only as a reward for the good performers, but also becomes a motivation for others to perform well and get rewarded. One can also offer staff members flexible scheduling for the holidays, if feasible. If work coverage is critical, companies can post a calendar so that people can balance their time off with that of their coworkers.
Point System - This is especially for hourly employees, who can be offered a point system that is tied to prizes. This re-energizes the first-tier employees, and creates a more competitive working environment. For workers on salary, several companies offer large prizes based on a 'points lottery' or simply allow for extra days off or an extra 15-minute break or two.
Insurance - Whether it is health insurance or life insurance, this is an incentive that most employees look for when joining an organization. According to a survey by Hewitt Associates, a human resources consulting and outsourcing company, of nearly 600 large U.S. companies representing more than 10 million employees, almost two-thirds (65 percent) say that they currently invest in long-term solutions to improve the overall health and productivity of their workforce.
Motivational employee recognition - "Informal recognition, like saying thank you or please, can make a huge difference," says Abhay Kumar Dubey, a software engineer working with a startup in Delhi. Supervisors, have enough opportunity to praise and encourage best efforts daily. These help in providing recognition that is valued by the employee and also a motivational factor.
With time, incentives have gained importance, and are now the prime motivational weapon used by employers around the world. According to most experts, incentives can push performance and productivity far beyond what you expect. Do let us know, what are the most popular incentives that your firm offers, or you would like your firm to offer?
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Reader's comments(17)
1:
A well explained article. Good thinking. I thought I can add: The Incentives are essential but all has its own limitations. The MOST important to have a good BOSS. More than 65% of the employees leave the organization due to BOSSes. Overall benefit of all these incentives are available to the employee when he/she moves on from one organization to another. It is important that the employee has the required profeciency in trade then he/she will not be at disadvantage position when s/he has to leave the organization. Employees do compare with each other in an organization / with in the interconnected departments. It is also important that good opportunity is provided every one to exibit his tallent in handling his/her work benifiting most to the organization. The real achiever has to get the required recognition. Any error by the BOSS in recognizing the deserving one, the incentive to one will work as disincentive to the organization as it will triger the other deserving employees to look for other organizations where his/her effeciency will be recognized and rewareded. All types are incentives are required like side dishes in a meal but it can not be more important than the salary and position itself. A carrier growth in his organization is very important as employees have only one life to achieve. Promotions for the deserved ones are also a must along with incentives in cash or kind. I do not think any employee will have any reservation to take up any additional responsibility or hard work, if it calls for, if only such contribution is matched by contribution by his organization as well in return.
Posted by:uday prakasha
- 19 Mar, 2010
2:
This type of offers no doubt help in retaining the employees in the IT field. But what about other fields. English media is one where the attriton rate is quite high as the opportunities to jump jobs are plenty. However, after the recession the same does not hold true anymore. Besides, there were salary cuts also in a few big media houses. Hence to generalise these things are not all correct.
Posted by:N Niranjan Nikam
- 19 Mar, 2010
3:
Really last one is more effective.
Posted by:Tej Dixit Lotus Notes Developer Delhi, Gurgaon , Noida
- 19 Mar, 2010
4:
You get these incentives in which ever big co. one goes. These are no way attractive now a days. What an employee wants today is job satisfaction, he should love the work he/she is doing, good team and manager and some verbal motivational words.
Posted by:Abhay
- 18 Mar, 2010
5:
The govt has spotted the industries for milking.
Be it ESOPs or corporate discounts, many will be taxed as a benefit given by the company. So, although you may lose on the effective value of the ESOP, you will still pay tax on it from Apr 2010 onwards.
Be it ESOPs or corporate discounts, many will be taxed as a benefit given by the company. So, although you may lose on the effective value of the ESOP, you will still pay tax on it from Apr 2010 onwards.
Posted by:Kaushik
- 18 Mar, 2010
6:
some companies like wipro are offering different kind of cash bonus to retain the employee. Employee will get the complete Bonus if he stays one year in company...
these kind of conditions on the bonus makes employees to ignore these offers and look for alternative. These promises are like showing the fruit and say this is yours but you have to wait to eat it. by the time you get your fruit the company would have earned 100 times than the fruit cost.. but now employees are not interested in all this kind of incentives.
these kind of conditions on the bonus makes employees to ignore these offers and look for alternative. These promises are like showing the fruit and say this is yours but you have to wait to eat it. by the time you get your fruit the company would have earned 100 times than the fruit cost.. but now employees are not interested in all this kind of incentives.
Posted by:sri
- 18 Mar, 2010
7:
Hey Zoya,
You have pointed out some of the old tricks I believe! Anyways, these tricks are amazing and for your reference, the employees are very intelligent, so sometime they are also not ready to take cash prizes, as he knows what unnecessary pressure will be there afterward !
I totally agree with Shyam regarding ESOP, it's the newest way of prize!
Again friends.... have you ever thought of the mid level company's employees. Their HR Dept. is so small or poor to handle with these types of initiatives ! Still then they are working as per Charles Darwin's Theory of 'Survival for the fittest'... think at least once about them....
You have pointed out some of the old tricks I believe! Anyways, these tricks are amazing and for your reference, the employees are very intelligent, so sometime they are also not ready to take cash prizes, as he knows what unnecessary pressure will be there afterward !
I totally agree with Shyam regarding ESOP, it's the newest way of prize!
Again friends.... have you ever thought of the mid level company's employees. Their HR Dept. is so small or poor to handle with these types of initiatives ! Still then they are working as per Charles Darwin's Theory of 'Survival for the fittest'... think at least once about them....
Posted by:Nil B
- 18 Mar, 2010
8:
i think the last one more effective because of that employee get enough satisfaction & might be become more dedicae for his orgnization
Posted by:k jayesh
- 18 Mar, 2010
9:
I liked the last one. Monetary benefits will only please the associate only in the short run. Associates need more than just the money. They look forward for the right recognition at a right spot.
A THANK YOU note for a job well-done. Recommendation written for an associate that he has excelled in his job.
At times NOT COMPARING other associates with the achieving associate is a reward on its own. Every associate has his own strengths and weaknesses and the manager has to balance both. Encourage the achievers to acknowledge who all have part-taken in getting the job done. Encourage mutual respect and co-ordination.
A THANK YOU note for a job well-done. Recommendation written for an associate that he has excelled in his job.
At times NOT COMPARING other associates with the achieving associate is a reward on its own. Every associate has his own strengths and weaknesses and the manager has to balance both. Encourage the achievers to acknowledge who all have part-taken in getting the job done. Encourage mutual respect and co-ordination.
Posted by:Raja Jeevan Kumar Maduri
- 17 Mar, 2010
10:
How about ESOP (Employee stock option) offered by companies.It is a best form of incentive given to employee but highly profitable to a listed company as it means `Work for me but get paid in the stock market` with less tax.`
The IT companies thrive because of legal tax evasion under STPI act where everything tax free.
The IT companies thrive because of legal tax evasion under STPI act where everything tax free.
Posted by:Shyam Prabhakar Kunte
- 17 Mar, 2010
11:
Its a pretty comprehensive list of incentives . But there are lot of things money cannot buy . The biggest incentive a company can give to an employee is to make the work place a place he/she feels like coming back to ,makes the employee feel a sense of belonging and ownership and empowerment .
I have seen people stay in organisations with lower comp and people leave organisations fast even though the money and incentives are good .
Getting the balance is the key
I have seen people stay in organisations with lower comp and people leave organisations fast even though the money and incentives are good .
Getting the balance is the key
Posted by:George K Cherian
- 16 Mar, 2010
12:
All most all types of Incentives and motivational factors have been covered.To have an efficient and loyal work force with negligible attrition rates one must effectively implement these.
Posted by:Ajith
- 15 Mar, 2010
13:
There are possibilities where employees can reward their team - not all necessary monetary. I had written about the same here http://madhusudanrao.wordpress.com/2010/03/09/effective-retention-policies/
Posted by:Madhusudan Rao
- 15 Mar, 2010
14:
Wish my company would offer at least half of these incentives.. now that the employment scenario has improved, I think we can take advantage of the situation!
Posted by:esha
- 15 Mar, 2010
15:
Same here, wish to get at least 1 incentive scheme:( But sorry to say, that Government should look on this type of Employee beneficiary activities in small private sectors also.
Nil B Replied to: esha
- 18 Mar, 2010
Beautiful and dress selection, please go to Dresses
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