Companies often misusing employee incentive programs

by | May 13, 2014 | General | 0 comments

When used correctly, employee incentives can have a greatly positive impact on the workforce, increasing motivation and productivity as well as allowing workers to be rewarded for what they achieve. However, often times employers misuse incentives, resulting in more harm than good.

Here are four such examples, as pointed out by compensation consultant Ann Bares


1. To fix larger problems

A small incentive can go a long way in getting employees to go above and beyond their potential, however companies must be careful. If there are limited resources and/or problematic processes, the incentive funds would be better uses to correct these inefficiencies.


2. As a buffer

Incentive programs should not be used as a buffer against poor-performing employees. Incentives offered for tasks that are part of everyone’s job description mean top-performers are expected to pick up the slack of the poor-performing workers, which in turn means the business is not running as efficiently as it should be.


3. To avoid regular feedback

Incentives do not eliminate the need for regular manager feedback. Employees continually need a supervisor to regularly check in to let them know how things are going and where improvements can be made.


4. To enforce policies

Following company policies and essential job requirements should be a non-negotiable part of the job – not something that employees should be enticed into doing by using incentives.  — not something that employees are cajoled into doing using incentives.



Call Alternative HR today for assistance in building an effective employee incentive program for your employees!