Will you get better performance from your employees by providing a carrot where you focus on rewarding them for the quality of their work? Or do you instead introduce a stick to reprimand them for bad behavior?

People will always work harder when they are appreciated, and rewarding employees achieve this goal.

But while one study revealed that 88% of employees believe that it’s important that they are rewarded for great work, only 41% believe that their employers are effectively incentivizing them for going above and beyond what’s expected.

This reveals a clear mismatch between what employees want and what they receive.

That is not only bad for employee morale, but it is also bad for business.

Here are 4 ways that an employee incentive program will benefit your business.

1. Boost Productivity by up to 75%!

It has been recorded that incentive programs see a 52% increase in productivity. When these are linked to the organization’s core values the result is a 75% productivity boost.

The increase in productivity is simply because your workers are happier at work. One survey revealed that 50% of employees associate workplace happiness with feeling appreciated.

2. 79% Higher Success Rate in Achieving Set Business Goals

“Our success is your success” is catchphrase companies often use to motivate their employees.

Most people are still tuned into Radio WIIFM, that is, “what’s in it for me?”

When an employee sees a rewards and recognition program where achieving business objectives equates to a valued personal gain for them, then they are motivated to help achieve that objective.

3. 66% Better Top Talent Retention

Incentive programs are not just about attracting the best talent, they are equally about retaining existing talent.

When your organization has spent years training and improving the skills of your best employees, you need to have something in place that will make them want to continue working for you.

Competitors may offer higher salaries and various other benefits. But if you have a comprehensive employee incentive scheme that ensures your talent is well paid and incentivized to work for you, they will be happy in their work. That makes it difficult to even consider working elsewhere.

66% of top talent will stay with their current organization if they feel they are receiving the right rewards and recognition.

Organizations that offer properly structured incentive programs will attract higher quality workers than other organizations.

4. 37% More Sales

While this statistic is specific to sales teams, there’s no reason that it can’t apply to other teams too.

Well-rewarded employees are happy employees. Happy employees deliver high-level customer service. Great customer service results in happier and more loyal customers. This leads to higher customer lifetime value.

Not All Employee Incentive Programs Are Created Equal

Your employee incentive scheme will only be effective if it delivers what employees value.

How do you know what that is?

Here is a remarkably simple answer to that question.

Ask them!

Prepare a survey including a wide range of employee incentive options and how they operate, that is affordable for your organization. Ask employees to rate each option from favored to least favored.

You can always consult with Global Resources for further assistance.