Monetary incentives will go a long way to motivate the best efforts from any employee. There are also non-monetary incentives, such as free vacation time and gym equipment, among others, that help to keep up team-spirit at the workplace. The general purpose of such bonus is to improve productivity and efficiency in the workforce, as well as encourage every employee to work with all their strength to please their employers and advance the company.
On the other hand, employees in a poor working environment may feel reluctant to render their jobs effectively and efficiently. Similarly, some unfavorable factors, such as low wages or salary and other internal factors, can limit the productivity and skill of an employee. Employees working under this type of employer may lose interest in the well-being of the company.
While monetary incentives may not guarantee an outright increase in productivity in the workplace, it will play a great role in boosting the working abilities of your employees. The addition of incentives to motivate the workforce depends on the employer.
Monetary Incentives: An Efficient Way to Boost Productivity and Keep Your Employees Happy
Monetary incentives that can motivate employees include:
Bonuses
A bonus is a cash inducement added to a worker’s regular salary or wages. It tends to increase the workers’ income above normal. Employers prefer to add a bonus to their employees during celebrations like Christmas, New Year, or when the need arises. Many employers add this bonus without the knowledge of their employees. Any bonus added to the employees’ wages or salaries will increase productivity in the workforce.
Retirement Benefits
Every employee looks forward to a happy retirement after exceeding their working age. While it isn’t mandatory for US employers to provide their workers with retirement benefits, employers should support their employees’ retirement plans. According to studies, employers that support the retirement plan of their employees will experience more productivity than employers without a good retirement plan for their employees.
The retirement plan that every employer should provide for their employees includes monthly pension, gratuity, and other needful support given to retired workers. Employers that provide fewer or zero supports for their employees during retirement will experience poor individual contributions to their organization. There is a reason retirement plans are necessary, and as an employer, you have to put the after-service welfare of your workers into consideration.
Allowances
Any organization that includes monetary incentives such as allowances to its workers’ salaries will surely boost workforce productivity. Most companies include transport allowance, traveling allowance, and wardrobe allowance, among others, to their offer letter. Organizations that list any of the benefits mentioned above during hiring should make it available for their workers.
Stock Options
Using stock options is a fairly easy alternative to motivate your employees, as you are not physically taking cash from the company’s account to do so. Also, employees that are given stock by their employers are inclined to ensure that their stock appreciates with the organization’s own growth. They can go the extra mile to ensure that their organization meets its goals. Employers should always make this stock option available to their employees at all times. The stock could be offered to the employees at a smaller amount compared to the market price, if not totally free.
Access to Loans Option
Employees should have access to a low-interest loan guaranteed by the employers or even made directly by the company. Employees may have an urgent need that requires a substantial amount of money. The loan option will enable any employee with financial needs to meet their monetary problem. The loan can easily be deducted from the employee’s monthly salary. An organization that provides this type of support will boost its workforce.
Scholarship to Employees’ Children
A big company can provide this option for their employees. The employer can organize an exam to test the ability of their employees’ children. After examining them, the company can select the best among all and educate them, free of charge. But if the company is buoyant enough, it can extend the scholarship opportunity to all the employees’ children. These types of monetary incentives will motivate workers.
Profit-Sharing
Many companies have a profit-sharing scheme set aside for their workers. The profit-sharing comes into play when the employees are meeting targets. The employees tend to receive higher profits when they achieve bigger milestones or goals. Some of these companies usually give their employees a specific target to meet within a specified time. Employees work extra hard to earn the maximum profit from their employers.
Provision of Health Benefits
Some companies provide their employees with health benefits that cover medical bills whenever the need occurs. Employees or their families may suffer health challenges resulting from stress or any other factor. Employers should assist their employees in this condition. When the employee recovers, they tend to work with renewed enthusiasm while carrying out their obligations. These days, many companies try to ensure that accidents, stress, and other health challenges are reduced at the workplace. But any worker that encounters any health issues should have their medical bills paid by their employers. This benefit depends on the employer and the terms and conditions upon which you are employed.
Other Types of Non-Monetary and Monetary Incentives
Productivity Linked Incentives
Incentives are provided by employers to motivate employees’ effort. They are also meant to increase the workers’ current earning up to a certain limit. The employer should acknowledge employees that create a greater impact on the company. This strategy will motivate other workers to work harder than usual to please the management.
An Incentive for Employees’ Additional Education
Almost every company encourages its staff to develop themselves. They believe that when their employees advance their profession via training or education, they will surely contribute more towards achieving the company’s goals. As a result of this, companies provide educational incentives to support their employees willing to further their studies. This bonus usually covers the tuition fee and other necessary fees required to accomplish the employee’s study goals. This particular extra depends on the employer. Some employers may avoid offering this bonus to their staff because of a personal reason, or from the agreement made during the hiring stage.
Material Gifts
Companies can acknowledge their productive staff with landed properties, cars, paid vacations, or other gifts to appreciate their positive contributions to the firm. This gift will motivate the workers to appreciate their employers’ recognition.
Giving monetary incentives is a sure way to always ensure a happy, well-motivated workforce.
