Employee incentive problems and how to solve them

Posted by Kevin Chamberlain

Encouraging your staff to succeed and perform well is always a positive endeavour. However, the way you do so might occasionally create some issues. We’ve picked out three key problems that you might face when putting employee incentives in place.

Focusing only on the rewards

A possible risk of using incentive rewards is that staff might begin working on a much smaller scale than they otherwise might have done. Some staff might start looking only at what they need to do in order to earn their next reward, rather than what they can do to best benefit your business.

To solve it: Create a broad, multi-faceted incentive programme that rewards staff for more than meeting quotas – Reward them for imaginative thinking, creative ideas, and unique solutions. Consider a bigger end-of-year reward for the whole business, like an incentive travel trip, based on how well you’ve done as a business overall, rather than each month or quarter.

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The risks of cash rewards

Using money as an incentive can often seem like a fantastic idea. Ideally, it lets staff use the money on whatever they like, such as a new gadget they’ve been waiting to buy. However, cash rewards can get swallowed up by general expenses, bills and other unexpected costs. This leaves staff feeling unrewarded, as the incentive was, in the end, a slightly higher payslip, rather than something tangible.

To solve it: Reward staff financially, but steer clear of using cash. Instead, use gift cards for their favourite retailers or restaurants. This ensures that the incentive won’t get eaten up by day-to-day expenses, and the full value can be used in a rewarding manner.

Tension between staff

Rewarding the top performers in your business can be a great way to show you’re paying attention and are thankful for their hard work. However, in some cases, it might be the same select few being rewarded time after time. This could cause tension between employees, as encouragement to do well turns into unhealthy competition, a lack of motivation, and some staff feeling that they are being left on the sidelines.

To solve it: Make sure you have incentives in place that reward teams rather than individuals. Rewarding an exceptional individual is great, but it’s important that you still encourage other staff to succeed. Use incentives to encourage your staff to work together and collaborate, so that they can earn incentives collectively.

Reward employees effectively with CR Worldwide

Rewarding staff well is a fantastic way to encourage better performance, while also fostering a sense of company loyalty in them. It shows that you value and appreciate their efforts, so they feel eager to help your business succeed in turn. That’s why an effective incentive reward scheme is key for many businesses.

At CR Worldwide, we can quickly design, launch and optimise powerful recognition and reward programmes for your business.

We’d love to help you engage, motivate and inspire your business’s customers with our innovative employee recognition services. Contact a member of our award-winning team for more information and to find out how to drive your business performance today.