Why are incentive schemes so important


Because they give satisfaction to your people. A well-designed incentive scheme will help your personnel develop and teach them to act responsibly, make decisions and work independently. It will teach them to think outside the box. To achieve a particular goal, your thinking needs to be more precise. You can’t just live for today. Instead, you need to plan.

If you plan, you will do much, much more than by merely living your life day by day or letting your daily routines control you.

Thus incentive schemes can help your people and your business to achieve more.

A well-designed incentive scheme will drive your people’s performance and help them stick to higher and higher standards they themselves set.

Personal or professional development matters to everyone. Progressing up the career ladder is part of the development.

What I mean that is that the goals and standards must be meaningful and adequate.

What matters here is to keep developing. The fact that you are not developing does not necessarily mean that you are keeping your position, not moving, staying within your comfort zone. Actually, you are moving backwards. That is why following new trends, learning new things as they come and keeping up with the times should be a normal part of your daily life.
This is what sportspeople do. To improve their performance and results, they keep breaking their own records and developing their skills. Their training or practice plans are designed to help improve every day. Why? Because they want to go further and achieve more. Once they reach a goal, they work towards another one, as they want to progress to higher levels. They want to keep breaking records.

After all, this is what computer games are about – players keep achieving new levels.

Just like in your life.

Thus, by providing your people with opportunities to develop their abilities, to work towards excellence and to improve their skills, you actually enable them to build their expertise.
If your decision to implement an incentive scheme within your organisation makes your people frustrated, you need to make them believe that the system is of benefit to both them and the organisation (and remember to deliver on your promise). They should know that you are putting the system in place to help everyone improve their performance. After all, improved business performance means benefits for your people. This will come through their efficient work. It is worth the effort then.

Bonuses are not something you should save on. But only and exclusively if your incentive scheme is well designed.

A slapdash solution can be harmful to the entire organisation.

That is why it is essential to take time and design an incentive system that will do its job and, as the name suggests, act as an incentive.

Ok, what to begin with?

The first step in the process is to define your organisation’s strategic goals. This is followed by identifying which business areas will help you achieve these goals and how.
Each business area is structured differently. The goals and requirements are also different. The skills and abilities that your people need will depend on the way they are expected to do their work.
In some areas, they need to work meticulously and with attention to detail.

Quality matters more than time.

In others, they need to work really fast, as time is of the essence.

These differences should be taken into account in the recruitment process. The experience, skills and personal quality must be adequate to the work. It is unusual to find people who find their work tiring, while others will do the same work quickly and accurately, enjoying it and delivering better results to the satisfaction of your customers.

Doing work you are not suitable for is an necessary suffering. Unfortunately, this happens because people are sometimes assigned work that is not in line with their skills. But what does it happen? Some people do not know what they are really good at or what they enjoy doing. Sometimes managers fail to give enough attention to what their staff can do really well and what work they should be given. Sometimes they do identify their strengths, but would need to move them other areas of the organisation to be able to make full use of their potential. Instead, they are satisfied with their performance and prefer to keep their well-trainer person in their team.

An incentive scheme must meet a number of requirements to do its job.

1.First of all, it must well thought-out and suited to

a.a particular business sector,
b.a particular company,
c.a particular department,
d.the company’s goals and the duties and responsibilities of the people.

2.It must be flexible and adjusted for seasonality,
b.development requirements, and
c.the goals and objectives set by the company.

3.It must be transparent, clear and easy to follow, so that the company’s people could track their performance a daily basis and motivate themselves to deliver on their goals.
4.It must be stable, which means that the frequency of revising the targets as part of the system must be defined and communicated to the people concerned.

This text is an excerpt from a book by Marlena Skiba.

If you have any questions, comments or ideas, share them with us at

projekty [@]

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