Building Your Business in a Troubled Economy

This economy is bringing everyone down and if your employees are unhappy then your business is too but what can you do? Money is tight, budgets are being cut and all this only adds to the downward slope. So what is the best solution when spirits are low and money is tight? An employee incentive program can be the silver lining on the edge of your rain cloud.
A successful incentive program should pay for itself from the profits it generates but you will have to be willing to pay for it up front for promotions, awards and administrative costs. So regardless of the economy an incentive programs, when done right, will always be affordable and profitable.
The first step to creating an incentive program is defining what you want your incentive program to accomplish. This step is extremely important because a successful program is one that fits in with the companies overall business strategy. Hold a brainstorming session with a select group of people from each department that will be participating in the program. This session should bring to light not only the company’s most important objectives but also any internal problems that need to be solved. Make sure the objectives set for the departments are not so far out of reach that the y become frustrated and give up, no matter how grand the award is. Make sure objectives and awards are set realistically based on the involvement of a department in the company. Meaning know who you are motivating and why.
When budgeting, plan to spend 5 to 15 percent on administration costs; 20 percent on promotion; 70 – 75 percent on awards; and the remainder of the budget for evaluation, training and research. If you run a shorter program of 3 months or less the rewards should be of a higher value to produce quicker results. Keep in mind that the higher a participant’s income the higher value awards should be used. When possible take into account the ratio of your work force that produces most of the volume and award accordingly.
Promotion of the program should start before the program is even launched. It is just as important as the program itself. When the incentive program finally launches everyone should know what it is, what the goals are, and the rules for participating; most of all though everyone participating should be excited for the launch.
Finally it is important to analyze the results of the program to point out how successful the program was and what can me tweaked for the next program.

If you are ready to implement an employee incentive program but are not sure you want the daunting task of doing it your self, Branded Solutions is the easiest route to a successful incentive program. We can put together a program just for you, based on your needs as a company for free with no obligation to buy.


~ by BRANDED Solutions on June 25, 2009.

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