Communication is essential

Communication frequency and redundancy are key in employee incentive recognition programs. Employees should have daily visual contact with some form of program reminder. Posters, banners and tent cards are the most common forms of visual identification. In addition to visual contact with the program, employees should be presented with an ongoing communication campaign of performance reminders, personal performance results and overall program results. Monthly performance statements, reminder mailers, e-mail, paycheck stuffers and a program newsletter are all effective ways to communicate the program and keep employees informed and involved.

Here are some additional guidelines for specific employee program applications:

Safety Programs

• Track and reward based on reduction of accidents or reportable incidents
• Quarterly improvement is most common benchmark
• Recognize safety in action using discretionary awards
• Understand ramification of turnover
• Communication is critical and can justifiably account for as much as 50% of the overall program budget
• Reinforce safety guidelines
• Don’t overlook language barriers-you may need to present bi-lingual materials

Suggestion Programs

• Base award earnings on approved suggestions
• Encourage employees to calculate savings
• Reward for approved ideas
• Reward based on percent of savings
• Take advantage of team structure/existing work groups
• Research shows that teams generate better ideas than individuals
• Reward for submitting ideas
• Don’t overlook intangible suggestions

Productivity/Quality Improvement

• Build around measurement systems already in place
• CSI index, product standards, quality standards
• Use multiple criteria for earning vs. single measurement criteria ie: CSI
• Training reinforcement is critical—reinforce standards and procedures
• Clearly communicate expectations

Beyond Measurable Success

Don’t underestimate the benefits of employee incentives and recognition programs beyond measurable results. Additional intangible benefits include:reased morale

• Increased teamwork
• Positive cultural shift
• Increased awareness of corporate objectives:
• Greater adherence to procedures
• Reduced complaints
• Reduced absenteeism
• Improved timeliness
• Improved communications
• Increased commitment by management to continuous improvement

Based on Incentive Federation Research, here is a breakdown of the goals that companies have focused on using employee incentive and recognition programs:

Objectives Percent Responding

• Improve Safety (reduce claims/lost time) 62%
• Build morale 61 %
• Build employee loyalty/trust 43%
• Show management's concern for workers 38%
• Build better customer service 29%
• Obtain ideas or suggestions 29%
• Improve attendance 26%

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