Incentive compensation programs enable organizations to produce targeted results by rewarding employees who have done an outstanding contribution to achieving them. Incentives have always been a package of sales-based commissions but, nowadays we can see this arrangement has become common for all departments at every organization level.
Budget limitations have always been a matter of concern to every company but these programs are used for many years to promote efficiency and productivity of the workforce. Other than this it has the power to enhance employee recruitment, engagement, and retention. Power2Motivate is one such platform that creates the most effective, rewarding, and worthwhile programs that can be incorporated into every company.
In some circumstances of economic uncertainty companies’ incentive programs can be affected. So, it is advisable to not to develop any unrealistic or easily attainable incentive that can outperform. Before designing and incorporating any incentive compensation program in your company it is advisable to consider some legal issues regarding it likewise –
- Whether your incentive is money-based, stock-based or prize based
- Is your employee exempt or nonexempt under the Fair Labor Standards Act?
- Whether the incentive compensation program falls under the Employee Retirement Income Security Act?
- Can the changes to plans be applied before their anticipated expiration?
Come let’s check the key factors we can expect to shape the incentive world. Some of the surefire trends to incorporate when providing incentives are mentioned below –
- Wellness programs
The incentive industry is looking for new trends with its growing popularity. To make oneself noticeable in this competitive market companies are trying to implement stress-reduction merchandise to wellness-centred experiential rewards like spa packages. Providing wellness program options like yoga retreats, offering meditation courses, healthy food options as incentives have become the latest trend. It focusses on the wellbeing of an employee by giving them proper guidance and space to nourish their mental and physical health and provide complete relaxation.
- Introducing robots as incentives
Every industry is constantly innovating to develop and incorporate new technology into their services. As artificial intelligence is also getting smarter companies are trying to experiment to use it in their incentive programs. Household products like Alexa and Siri, or Chatbots are some useful elements one can try to incorporate into an incentive program. These products are not only accessible but also give a personalized user experience whoever uses it.
- It’s all about the Experience
When talking about experimenting in incentives employees are always excited to receive any stuff as a reward, but it might not be the most fulfilling choice. Whereas the initiative of experiential rewards as an incentive in any company holds more value rather you can say an unforgettable experience. So, creating experiences for an employee by providing tickets of a sporting event, backstage pass to their favourite shows, travelling to an adventurous place are some of the experiential rewards that a company can plan to reward as per their budget.
Providing your employees with a sophisticated learning program is an ideal way to enrich your employees to grow together. Offering E-learning options or conducting programs on their needful subjects of developing skills can help them better understand how to use your products or services, which in turn helps to grow both of you simultaneously. This creates an authentic connection between an employer and staff ultimately forming mutually beneficial relationships.
Even when they travel employees are always looking for an educational element to be brought into their incentive trips. They want to learn about the country they are visiting and come back with more knowledge about their culture. So, in a way providing your employees with exposure to learn, experience and to gain knowledge indirectly boosts their morale thus indirectly uplifting your business cycle.