Rewarding Employees – Three Bonus Programmes For Your Small Business
Are you looking to introduce an employee rewards programme? Employees who are regularly recognised and rewarded for their work are; happy, engaged, productive, and loyal.
According to a 2018 WorldAtWork survey, bonus programmes are becoming more popular, especially among small and medium-sized companies. Using bonuses to engage and motivate your employees works because it; builds team collaboration, creates friendly competition among employees, and increases individual and team productivity.
Here are 3 examples of effective employee reward programmes:
1. Annual Individual or Team Incentive Bonuses
Annual incentives bonuses are awarded to individuals or teams that achieve the goals and targets that were set for them at the beginning of the performance cycle. To create an effective annual incentive bonus programme:
- Set clear, consistent and measurable goals that are linked to the individual or team’s roles.
- In relation to team bonuses, make sure the goals that are set requires the efforts of the entire team.
2. Spot Bonuses
Spot bonuses are given to individuals or teams to reward desirable behaviour, for example; providing exceptional customer service, demonstrating great leadership skills on a team project, and helping on projects outside of their role. To create an effective spot bonus programme:
- Create different levels of spot bonuses, for example you might give a £30 gift card to an employee who demonstrated good team motivation whereas a truly above-and-beyond action may be recognised with a £400 gift card.
- Create an annual budget for spot bonuses; stick to it but don’t feel obliged to spend the whole lot, only reward truly deserving employees.
- Make the bonus count by only rewarding exceptional behaviour, not simply employees doing their everyday tasks.
- Don’t schedule spot bonuses; if employees know that every second Friday is spot prize day, they’ll lose their motivation. Keep them guessing by awarding spot bonuses irregularly.
3. Referral Bonuses
Referral bonuses are offered to employees who refer job candidates who get hired and complete a probationary period with the company. To create an effective referral bonus programme:
- Develop a policy to decide a) if referral bonuses for every job, or only for certain positions, b) is this an ongoing programme or only for those specific times the company is hiring.
- Decide how to payout, for example will the employee receive half of the referral bonus when the employee is hired and the balance after they complete the probationary period, or will they get the entire bonus after the completion of the probationary period.