Showing posts with label incentive program. Show all posts
Showing posts with label incentive program. Show all posts

Friday, May 22, 2009

Only in it for the incentives?


Think your employees are only in it for the incentives? Worry about it on Tuesday.

Have a happy Friday and enjoy your long Memorial Day weekend!

(image via Cubunga)

Wednesday, April 15, 2009

The ugly side of safety incentives

Safety incentive programs are generally developed to encourage employees to practice safe working habits on the job. Unfortunately, how some organizations design and execute their programs can be dangerously flawed, putting more employees at risk for injury.

In a series of articles dealing with Workers’ Compensation issues, entitled “A World of Hurt,” one of the most recent articles examines how safety incentive programs may be causing more harm than good. Employees at one New York DuPont plant, are being peer pressured into not reporting workplace injuries in order for everyone to receive safety rewards.

From the New York Times article:

TONAWANDA, N.Y. — The sprawling DuPont plant along the Niagara River here can be a grim place, but less so on the days when the company hands out coupons to reward workers for a few weeks without injury.

Called “safety bucks,” the coupons look like real money and can be redeemed at Red Lobster, Home Depot and several other businesses in the area.

For some workers who risk their fingers and bones to make Corian, the stonelike countertop material that is the plant’s major product, the coupons have become a modest blessing and benefit. But other workers regard them as a curse, as a way to mobilize peer pressure against workers who might consider reporting an injury.

“You know that if you report an injury, everybody says, ‘You son of a bitch,’ ” said Dan Austin, who worked at the plant for 30 years. “I’ve heard people say, ‘So-and-so reported an injury and it’s going to cost us our safety bucks this month.’ ”

Companies across the state have recently introduced reward programs to curtail injuries, in part to keep their workers safe, in part to cut down on workers’ compensation claims, which managers cite as a huge factor in the high cost of doing business in New York.

The article goes on to explain how New York’s workers’ compensation system is “plagued” by an ongoing list of failures, including a war between employers and employees over workplace injuries.

When it comes to safety incentives, a program will never be successful if employees are cursing each other for reporting injuries. Some in the safety industry suggest that instead of rewarding a lack of accidents, rewarding safe behavior will improve the effectiveness of your program.

Robert Breslin at SafetyXChange says that the problem with most safety incentive programs is that managers aren’t rewarding safe behavior, just the “absence of unsafe behavior.” That major flaw is actually providing employees with an incentive to fail to report or under-report workplace injuries.

Breslin suggests that companies “stop rewarding the lack of unsafe behavior and start rewarding safe behavior,” giving this example of what an effective incentive program would look like:

Instead of awarding each employee on a quarterly basis $50 in cash, equivalent non-cash prizes or chances to win prizes, take that $50 and buy 10 $5 gift certificates to a local store, movie theater, restaurant, car wash, etc. Then, pass out those gift certificates when you see someone doing something right. And do it with fanfare. “Hey Jim, glad to see you finally remembered your safety glasses! Here’s a gift certificate.” Before you return to your office, everyone in the facility will know what you just did.

What you’ve just done is reward safe behavior. And in encouraging safe behavior, you’re cultivating safe attitudes, as well. As a side benefit, you’re improving your relationships with workers and getting them to actually look forward to your visits. Last but not least, you’re accomplishing all of these things cost-effectively and saving your company money.
Every organization can learn a lesson from the flawed safety incentive program at the New York DuPont plant, but you still shouldn’t forgo the idea of implementing a program of your own. But remember to use safety incentives to reinforce positive behavior, not the absence of poor behavior, and you’ll be on course for success.

Does your organization use employee incentives to encourage on-the-job safety? What worked or didn’t work at your organization that you think others could learn from? Leave a comment and let us know.

Thursday, March 26, 2009

Boost employee productivity by keeping score?

In the search for ideas on how to improve employee productivity, earlier today I ran across an article from Colorado’s Steamboat Pilot & Today about a local business owner’s creative approach to improving his teams’ productivity.

Steamboat Motors manager Jeff Steinke has improved his bottom line and is helping other small business owners boost their own by putting his motto, “If you measure it, you improve it,” into practice.

“Make sure your employees know how they are judged. Establishing criteria in the short term is important. Employees need to know what they need to accomplish that day,” Steinke recently told a group of business owners at a seminar.


His approach to employee productivity at his dealership is based on his assumption that everyone is competitive by nature. In his dealership’s service department, where diagnostic and repair tasks can be standardized, he’s turned work into a productivity competition.

Here’s a clip from the article:

“In our service department, we sell time,” Steinke said. He observed that if a service technician can accomplish a repair usually allotted one hour in eight-tenths of an hour, that technician has achieved 120 percent productivity.

Steinke makes certain everyone in the service department knows who is achieving by posting a productivity scorecard on a door for all to see.

Business owners who adopt a similar technique can be prepared for the veteran employees initially to rebel but gradually come around to the new regime, he said.

“They’ll go out there and tear (the scorecards) down,” Steinke said. “It takes about two weeks to purge.”

He backs up his productivity charts with three-ringed binders stuffed with detailed job descriptions and pay scales tied to productivity levels.


In addition to posting employee productivity scores, Steinke works to improve productivity by giving employees a voice in how their departments run. Following recognition, being involved in their department is most important to employees and is “one of the biggest things we can overlook,” according to Steinke.

After reading the article, I still have some questions:

Productivity may improve when employees finish job in “eight-tenths of an hour” that were originally allotted an hour to complete, but was the quality of their work affected? Is the owner more focused on productivity than in producing a quality service?

According to the article, businesses should “be prepared for the veteran employees initially to rebel” when putting Steinke’s system into practice. Could turning work into competition hurt morale and cause resentment among employees?


What do you think about this approach to employee productivity? Leave a comment and share your thoughts.

Monday, March 2, 2009

Taking steps to improve employee morale

To deal with the recession and the effect it’s having on the workforce, more employers are taking steps to improve morale in their companies, according to a new survey by Accountemps.

Almost seven out of ten (68%) chief financial officers (CFOs) interviewed said they are implementing strategies to uplift their teams’ mood. However, more than one-quarter (26%) of executives say their organizations have done nothing to boost morale.

CFOs were asked, “In the past 12 months, what steps, if any, has your company taken to improve employee morale?” They chose the following responses (multiple responses were allowed):

  • Increased frequency, quality of communication (37%)
  • Offered additional financial rewards (18%)
  • Provided additional professional development opportunities (18%)
  • Conducted additional team-building activities (18%)
  • Enhanced employee recognition programs (15%)
  • No steps taken (26%)


While finding ways to improve dwindling sales numbers may be at the top of your ‘to-do’ list right now, it would be worth your while to work employee morale into the top slot of that list as well.

"Employee motivation should be a continual priority for businesses, but in a period of economic uncertainty, managers need to invest even more time and effort into maintaining team morale," said Max Messmer, chairman of Accountemps. "Companies that work diligently to keep their top performers engaged improve their chances to retain these key contributors."


Past surveys have shown that the economy has been bringing employee engagement down with it. Companies that work to counteract the economy’s effects by keeping employees motivated and engaged will find more success when the market turns around.

What is your company doing to improve morale despite the economic downturn? Please share any suggestions you may have for motivating employees during a recession.

You can also check out some of these posts for ideas on improving employee morale on a budget:

The one thing employees want at work

10 low-cost employee incentive ideas

5 tips to build employee morale in a down economy

Employee incentive ideas on a budget

Looking for new employee incentive ideas? Listen to Aretha Franklin

Monday, February 16, 2009

10 low-cost employee incentive ideas

These days, employees are taking on more responsibility and working harder than ever. You want to recognize your staff for all of their efforts, but your budget doesn’t seem to have any room for new ideas.

The good news? Most workers don’t need a high-priced award to feel appreciated. A January 2007 survey by Accountemps found that “frequent recognition of accomplishments” is the most effective form of non-monetary compensation named by full- and part-time office workers.

Even if you don’t have a lot of money to go around right now, there are still ways to treat your employees right and show them that you appreciate the extra effort they’ve been putting in recently.

Use a few ideas from this list of 10 low-cost employee incentives to show employees you care without breaking the bank:

  1. Hold an event for no reason. Come up with a themed event each month, even if there isn’t a holiday to celebrate. Some examples: Crazy Hat Day, Favorite Sports Team T-Shirt Day. Have employees bring in some snacks from home and treat them to a few pizzas on the company’s tab.

  2. Allow employees to take family days. For those days when kids may be off school, but parents may not be off of work, allow employees to work from home. Whether it’s a school half day or snow day, let employees skip the commute and spend more time with their kids, while getting work done.

  3. Create a contest. Hold a contest that everyone can get involved in - post a trivia question on the company intranet or fill a jar full of thumbtacks and place it on the receptionist’s desk. Let employees guess the answer and give a small prize to the person who guessed the closest.

  4. Celebrate small achievements. Reward employee achievements with small tokens of appreciation. Give a set of movie tickets to someone who went over their sales goals this month or present a small gift card for coffee to an employee who went above and beyond to help out a colleague.

  5. Give a discount on what you do. Give employees a small discount on the products or services you sell. Encourage employees to pass the offer along to friends and family. It’s a partnership that benefits everyone involved.

  6. Free food. Hold a pizza party on a Friday afternoon or bring in a few dozen bagels one morning. It’s a small gesture that everyone will enjoy and a simple, low-cost way to show your appreciation.

  7. Have employees recognize each other. Ask coworkers to write something they admire about an employee on a small piece of paper. Frame their message along with a photo of the employee and hang them along the hallways.

  8. Create a VIP parking spot. Reserve one of the best spots in the parking lot for employees who have done something outstanding. Give a new employee VIP parking privileges each month.

  9. Turn the break room into a game room. Stock the break room with some classic board games - Chutes and Ladders, Sorry!, Operation, even checkers. The games don’t cost very much and provide some entertainment for employees when they take their break.

  10. Say “thank you.” Leave a handwritten note at an employee’s desk telling them ‘thank you’ for a job well done. They’re two small words that can deliver the highest ROI when it comes to employee incentives.

Improve the productivity of your staff by showing them some well-deserved appreciation from time to time. Even the most simple employee incentive ideas can be just as effective as other high-priced options when you want to show how much you care.

Check out these related posts for more ideas:

5 tips to build employee morale in a down economy

Employee incentive ideas on a budget

Looking for new employee incentive ideas? Listen to Aretha Franklin

Incentives and rewards: Now is the time to act

Incentive programs: Where’s your follow-through?

Monday, January 12, 2009

Dream On: Improving employee morale one wish at a time

Last week, the folks over at Incentive Intelligence featured a new and surprising incentive and recognition program one company is using to improve employee morale and engagement.

Appletree Answering Service, a Delaware-based telephone services and call center firm, has found great success with a new employee incentive program called “Dream On.”

The program is simple - employees fill out a “wish” request and management fulfills wishes.

From the Delaware Online article:

"We've always had a philosophy based on taking care of our employees," said Appletree founder and CEO John Ratliff. "Dream On grew out of a concierge idea, where we would use our resources to help employees meet their personal needs."

The program is based on the Make-a-Wish idea of granting an employee's special wish for themselves or others.

"There are no criteria for structuring a wish," Ratliff said. "It doesn't have to involve a serious personal or health issue. There are no categories or limitations on what the wish can be, nor is there a set budget."


Employees can even submit wishes for other co-workers. In one instance, an Appletree employee received football tickets after a co-worker overheard how much she wanted to take her husband, currently battling cancer, to a game. The employee’s wish was granted before she ever asked for it.

With the Dream On employee incentive program, the company successfully tackled a 90-percent turnover rate among frontline employees. After the first full month of putting the program into action, the company has seen dramatically lower employee turnover rates and the savings in new-hire training costs has completely covered the cost of wishes granted.

Why the program works: By mixing the element of surprise and involving employees in the process, Appletree has found a way to improve morale and employee engagement across the board. Who doesn’t love receiving a gift from out of the blue?

How it could go wrong: One potential downside to the program may be the lack of “wish” limitations. Management fulfills wishes at random and the value of each wish varies. Without any set limitations, spending may increase to a point where cost outweighs the benefit of the program.

We want to know - Why do you like or not like this employee incentive program? What added benefits and potential problems do you see cropping up?

Thursday, October 23, 2008

Incentive programs: Where’s your follow-through?

You’ve determined a budget, put an employee incentive program in place and have taken your position, patiently waiting for the motivation to begin. Ready ... set ... hike!

While you may not associate employee incentives with college sports teams, there’s always someone out there like Paul Hebert at Fistful of Talent to make you think again.

Yesterday, Paul wrote an insightful post comparing the effort sports teams put into getting results (i.e., winning championships) to the effort organizations put into preparing their teams to hit the big goal (i.e., sales numbers).


“Too often, companies put a program in place, with the associated budget, in order to motivate the troops to hit their goals. But most of the time, the program is announced, the awards delineated and the “auto-pilot” button is pushed.

Everyone sits back and assumes because the reward is big the folks will do the job. Where’s the one-on-one coaching? Where is the daily practice on areas that need it? Who is watching from the tower and yelling instructions to the team below? In most cases, business is talking big money too. Lack of performance – whether that be your sales organization or your call center, can lead to either big wins or big losses. But we don’t want to put in the effort.

I spend my time talking to clients about the design of the incentive and reward system that helps align their audience to the goals for the organization – but I also ask what effort they will be putting into coaching, training and leadership.

The greatest incentive program in the world won’t get you to the results you want, unless you’re willing to put in the time with your audience to make sure they have the skills and the information needed to help achieve the goal.


To all of the training professionals and managers in charge of training employees, we would like to know - where’s your follow-through?

What do you do to make sure your rewards and incentive program doesn’t get set on “auto-pilot” mode? Do you always put in time with employees to make sure they’re equipped with the training and skills needed to achieve the goal?

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