A very important aspect of human resources management within an organization is to ensure that all employees of the firm are performing at their optimum capacity. In the case when the employees are not giving their best in ensuring that the goals and the objectives of the organization are achieved, the onus is on the human resources team to create a well-defined plan which would ensure that all members of staff are operating again at full capacity.
In most cases, a part of the human resources planning to bring everyone back on board is giving incentives to employees. This is done as a part of the compensation and benefits aspects of human resources management. While nothing is entirely guaranteed in the business world, the incentive strategy seems to have worked almost whenever it is deployed by the management of a firm. In this article, we would take a look at the important role incentives to play in employee productivity.
1.Encourages Excellence
When the perfect incentive plan is designed for the employees of a firm by the HR team, it could go a long way to encourage excellence. For instance, an incentive plan that requires staffers to meet a certain target before it can be accessed would encourage employees to push themselves to meet the set requirements. When this happens, the firm benefits greatly from it.
2.Boosts Morale
Who doesn’t love some freebies now and then? When the employees are properly rewarded and given incentives by the firm for their past efforts, the morale around the workplace would improve. Rewards and incentives go on to show that employees are respected by their employers. When people are respected and cared for, it boosts their morale and encourages them to give more to the firm’s cause. This is one of the performance management techniques used by many HR generalists.
3.Leads to Employee Loyalty
It’s no rocket science, when employees are valued and properly compensated, they feel loved and become very loyal to the firm. Loyalty means the employees would start to align the firm’s interest with their. Suddenly, it is no longer their firm or the firm – it becomes our firm. This sense of belonging and loyalty can only lead to more work and productivity, and the firm would reap the rewards by experiencing increased turnover, and profit margin.
4.Improves the Level of Teamwork
Incentives also play a huge role in developing teamwork within an organization. When the perfect incentive plans are put in place by the human resources team, it would foster friendship and encourage employees to work together to attain a certain goal. For instance, if an incentive plan that requires employees to work together as a team to reach a certain goal is put in place, it would bring the employees together and compel them to work as a team to arrive at the determined goal. This could only be of immense benefit to the firm.
Most importantly, effective human resources managers understand that different forms of incentive plans are required for different situations. Before designing and formulating an incentive plan that works, it is important to look at the current needs of the firm and create the plan accordingly. Only then can incentives lead to improved employee productivity.
