Home » Blog » Incentives and bonuses good or bad?

You want to motivate your employees to go that extra mile, so you decide to give them incentives, rewards and bonuses.  Do you give it to all employees?  Is it just the Sales employees?  How do you measure it?

Virginia Tech researchers from Pamplin College of Business have found that incentives such as bonuses especially those offered as a reward for meeting targets could lead to individuals acting unethically to improve results and speed up rewards.  Employee incentives and bonuses can have a positive impact on your workforce, if they are planned and executed properly.

When you are planning them you need to keep it simple and fair.  We appreciate you may not be able to offer the same incentive to every employee as they impact the company in different ways but be careful not to have 30 different schemes ongoing, you will spend all your time administrating it.  The success on any scheme is based on an understanding how it can be achieved and an appreciation of how employees may respond differently to them.

You may decide that as an employer you cannot afford to provide cash incentives, so you need to think out of the box.  How about offering a gift, merchandise, activity, vouchers or an extra day’s holiday?

If you need help creating one please feel free to contact us for a discussion about it?

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