The incentive system, or how to encourage an employee to work

Service Business

A company that employs employees must bear in mind that the company's success depends largely on the commitment and job satisfaction of its employees. In order to mobilize employees to work more effectively, entrepreneurs use an incentive system. Such procedures can bring many benefits to the employer in the form of increased employee involvement in the work performed.

Types of incentive systems

In practice, there are many incentive systems that aim to increase employee engagement. Motivational systems are divided into:

  • financial - e.g. discretionary or performance-related bonuses, as well as pay rises. Some companies use a competition system for awarding additional remuneration. This means that a competition is announced in the company, e.g. for the highest sales results, and at the end of the year, employees with the best results receive a cash prize;

  • non-salary - e.g. MultiSport card, medical care, foreign language courses, integration trips, holiday vouchers. However, when using a non-wage incentive system, the employer should inform employees that the bonus is an addition to the salary. This is to make employees aware that they have received something extra, out of the goodwill of the employer.

How to create the right incentive system?

The incentive system works as long as it brings benefits to employees. When choosing an incentive system, the employer should take into account the type and duration of work performed by employees. It may turn out that with a specific work system, not all of the benefits offered are available for a given employee group. Therefore, in some situations it is worth using the help of a specialist who will select the optimal incentive system depending on the work environment and the specifics of the activity.

What are the benefits of the incentive system?

It is worth ensuring that the company uses an incentive system. It is a positive factor for both employees and the employer.

Employees show greater commitment to work, deriving greater satisfaction from it. In addition, additional benefits can reduce turnover, making the company more stable.

Thanks to the use of incentive systems, the employer is perceived as the boss who cares about his employees, which contributes to a positive image of the company. Thanks to this, employees will not leave their jobs and compete, which will tempt with higher wages.