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          Value Creation
          Incentive Schemes

Many organisations fall into the trap of regarding incentive shcemes as a quick fix, a bribe in an attempt to get the workforce to perform to increased levels.

The reality is that incentive schemes that work – and are sustainable – are not just about the money. Their underlying purpose is to:

  • Create a sense of belonging and ownership
  • Implement a system that ensures regular and meaningful feedback – so that all staff are constantly aware of how they are doing
  • Build a culture of recognition and praise – the biggest single motivation factor for employees

What is the the underlying rationale for introducing an incentive scheme? Is it:

    • To build a better relationship with the Union?
    • To build a better relationship with the workforce?
    • To introduce a method to more effectively manage performance?
    • To introduce a method to give recognition for value adding performance?
    • To create a method that monetarily recognizes employee contributions to profit?
    • Or is it one part of a well-thought-out strategy to create a long-term value-creating work environment and culture?

Far too many organisations get caught in the trap of short-term thinking and expediency, hoping that introducing a simple gainsharing scheme – in which everyone will reap the rewards, regardless of performance – will pay handsome dividends to their bottom line. So quick and easy methods are adopted, payouts are done monthly – and soon become an expectation and a custom and practice without any quantifiable value being added.

Incentive schemes can do a lot of damage if not well designed, and if not fully aligned to the strategy.

We have significant experience in designing value creation incentive schemes that ensure value creation for all stakeholders, i.e. customers, suppliers, shareholders and – of course – your employees, without whose commitment and sense of belonging very little will be achieved.

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