It’s Not So Simple
There is an ever-evolving conversation around the topic of workplace incentives. Employers are constantly trying to determine whether incentives are worth it, and if they’re actually accomplishing anything to begin with. Perhaps the question shouldn’t center around the efficacy of incentives themselves but instead around which kinds of incentives workplaces should be offering in the first place .
Types of Incentives
The two umbrella categories of incentives are formal and informal. Formal incentives include all of the standard, traditional forms of incentives, like flat-rate retention bonuses. The problem with this kind of incentive is that it ends up being stagnant. These incentives may or may not increase employee retention, but in the long run, they aren’t going to make any considerable difference within the workplace in terms of burnout or nurturing a sense of belonging.
Informal Incentives
Informal incentives offer less traditional ways of encouraging motivation and productivity within the workplace. It should be noted that these incentives must be implemented in a balanced, impartial way so that hard working employees don’t feel like they’re getting the short end of the straw for the same work. These center less around simply hitting milestones and more around supporting the employees who actually work there to begin with. These incentives tend to take into account the unique struggles, desires, and motivations of the real people who work for our organizations.
Are Incentives Enough?
It is vitally important to remember that the little things count. Money is a great motivator, but sometimes what an employee needs most is a reminder that the work they are doing is important and that they’re valued. Without this sense of belonging, the sense of connection, even loyalty, that you are trying to create within your organization will fall short.
It All Comes Down to Balance
There is more than one way to show employees that they are valued. Arguably, the most important way to increase employee retention is to show employees that they are valued, both through smaller, more personable gestures and material incentives. Employees, especially hourly employees, need to feel that their time is valued. Certain incentive structures help to emphasize that better than others. CAREit Employee Retention Software offers employers a point system. This point system is integrated seamlessly into our app, which allows employees essential control of their own incentive plans. The point system allows employees to determine their rewards and how fast they can earn them. This actually enables users to mix intrinsic and extrinsic motivation, providing you with happy, content, and productive employees.