AN INCENTIVE PROGRAMME CAN WORK IF IT IS DONE RIGHT

This is Saturday 28th's post.

It's all in the planning - so many times because of lack of planning and lack of research, the whole bang shoot falls over.

Make sure that you have researched everything and that you have planned properly. That you know what the worst case scenario as well as the best case scenario is.

Always have a "Plan B"

Remember to have fun. Enjoy your business, love what you do and do what you love!

An incentive programme can work if done right
Employee rewards can make a huge difference to morale in the office
Workplace staff
27 February 2008 at 06h00

Anyone who's been involved with running an incentive programme can tell you that there are many reasons why it sometimes doesn't do as well as it should. Unfortunately, even a carefully planned programme can disappoint because of a few simple, but crucial, oversights. Below, we identify 10 of the most common mistakes when implementing an incentive programme.

1. A programme is under-funded

Under-funding impacts on all the critical components of an incentive programme, from the reach and frequency of the communication strategy, to the number of participants who are rewarded, to the amount of the reward that is given to impact on positive behaviour change.

2. Basic compensation plans are inadequate to start with

When employees are dissatisfied with their pay, no amount of incentive magic can help. When properly paid, on the other hand, the incentives are seen as just that - incentives to work even harder.

3. Motivational factors are not understood or taken into account

It's vital that you know what drives participants. Is it money, security or material assets? Is it the challenge or a desire to be the best? Avoid guesswork by using tried-and-tested performance theories that incorporate the motivational factors behind success. "Best practice involves segmenting your participant base in terms of reward strategies," says Jean-Claude Latter, sales director of the Achievement Awards Group. "Studies on generations highlight significant differences which need to be taken into account," he says.

4. A programme is too complicated

It's tempting to get clever with your programme rules structure, but its too difficult to understand or implement, many if not most of your participants will struggle to share your vision and enthusiasm.

5. A programme doesn't have clearly set, measurable objectives

It's essential to set clearly defined and measurable objectives before the programme is implemented so that you and your participants know exactly what needs to be achieved. If performance goals are too easy, participants will not feel challenged and will be quickly bored. If they are too difficult, they may seem unattainable and not worth striving for. Make sure the goals are challenging yet attainable to everyone on the team.

6. External factors affect employee performance
Make sure that, as far as possible, you minimise the impact of external factors on participant performance. For instance, if one of your sales team places an order on time to meet target, but it's held up at the factory, it shouldn't adversely affect his or her points-earning potential. Participants should be measured and rewarded on those factors that they can influence and impact upon

7. A company forgets the training potential

Companies forget the potential training value in the incentive program, which can be especially important in upgrading average or below-average performers.

8. Reward and recognition aren't up to the job

Taking part in a reward program should be "worth it". Rewards should be substantial enough to make a real difference in a participant's life and should be something to strive towards.

9. Participants don't know where they stand

Without regular feedback, even top candidates may drop out because they have no idea how they're doing. Regular results feedback and progress reports will also encourage average performers to do better and ensure the programme maintains momentum. The programme design should also incorporate self feedback mechanisms.

10. There's no programme evaluation

At the end of the programme period, you'll need to do a full evaluation against your objectives, otherwise you may never know if the programme was successful or not; and, if it wasn't, why it wasn't. You need to find out what you should be adjusting to ensure it keeps delivering a steady return on investment. "Far too often, we find that the evaluation of results and return on investment (ROI) are not considered until the end of the programme, as an afterthought or in some instances not done at all as it is too difficult," says Latter.One does not have to wait until the end of the intervention to start evaluation. Data collection and analysis planned, based on the initial situational analysis will allow for continuous adjustment, thus increasing the chance of a positive results and ROI.

Achievement Awards Group is a leading provider of full-service incentive and performance improvement solutions. Visit www.awards.co.za for more info.