Do you want to motivate your team? Learn about the different types of employee incentives! Employee motivation is a fundamental factor for the success of your company. A motivated team tends to be more productive, engaged, and proud of their work, which in turn contributes to a positive work environment in which corporate goals and objectives are achieved.
En GumsUp, we have all the necessary tools to motivate your team effectively and get them to bring out the best in themselves. Therefore, below, we are going to explain the types of employee incentives that exist and which one is most appropriate in your case.
Why are employee incentives crucial in Human Resources management?
Employee incentives play a crucial role in the management of the Human Resources department for some fundamental reasons:
- Motivation and commitment: When your employees feel valued and rewarded for their work, they are more willing to give 100% to each task and strive to achieve company goals.
- Talent retention: Incentives make workers feel satisfied and less likely to look for opportunities elsewhere.
- Attraction to talent: Companies that offer incentive packages often attract highly qualified professionals for the position.
- Productivity: By setting clear goals and rewarding objectives, you will encourage your employees to push themselves to the limit and reach their full potential.
- Good environment at work: Incentives contribute to the overall well-being of employees, so they will arrive at the office with a smile on their faces.
En GumsUp we discover you how to make a sales incentive plan for your sales team.
Types of incentives for employees: monetary ones
Monetary incentives offer direct financial rewards for an employee's contribution to the company's success. These are the 3 most common types of monetary incentives:
- Bonuses and commissions. Bonuses are additional payments made to workers in recognition of having achieved specific goals. Commissions, on the other hand, are an incentive in which the worker receives a percentage of the sales or transactions that he has generated: the more he sells, the more he earns.
- Salary increases. Salary increases are increases in an employee's base salary and can be due to good work, seniority with the company or an increase in the general cost of living.
- Participation of the profits. Profit sharing means that the worker directly shares in the company's profits, either through money or company shares. When the company prospers, the employees benefit too, which makes them work harder.
Types of non-monetary incentives
Non-monetary incentives are equally important in motivating employees and managing the Human Resources department. These incentives are capable of making workers feel committed and satisfied in their workplace. These are 3 types of non-monetary employee incentives.
- Recognition and awards. Recognition boosts employees' self-esteem and makes them feel that their contribution is valuable and appreciated. It can be in the form of public praise, awards, certificates of recognition or even a simple “thank you” for a job well done.
- Professional development. Professional development means giving workers opportunities for growth and learning: training for certain tasks, attending conferences, participating in projects, access to mentoring programs, etc. This not only upskills your team, but also shows them that the company is investing in their long-term growth.
- Labor flexibility. Offering work flexibility, such as the option to work from home, flexible hours, or extra personal days, is an incentive that many employees appreciate. This flexibility allows them to better balance their work and personal responsibilities, so they have overall well-being.
Types of employee incentives: social benefits
Finally, we want to present you another type of employee incentives that contribute to the satisfaction of your workers. These are the 3 common types of incentives related to social benefits.
- Health and wellness insurance. One of the social benefits most valued by workers is comprehensive health insurance. This includes medical, dental, ophthalmological coverage, wellness programs to have healthy habits, company gym, nutritional advice, etc. Employees will feel very well taken care of and will be more productive and loyal to your company.
- Work and personal conciliation programs. These programs are designed to help workers organize their personal and work lives. Some examples are flexible schedules, days for family matters, extension of maternity or paternity leave, child care or elder care services, etc.
- Remote work options. The possibility of working remotely is a relatively new benefit, but one that has gained much relevance. Workers can be just as effective from home, which gives them a lot of flexibility and convenience. Remote work or teleworking can increase the satisfaction and productivity of your employees by eliminating the need to travel.
there are more ways to motivate employees, as well as with incentives. In GumsUp we can help you improve your human resources management.
How to choose the right incentives
Once you know the types of employee incentives, you should know that it is very important to choose the strategy that is appropriate for your company. These are the steps you should follow to make a good decision:
- Meet your team: Before choosing the incentive you are going to use, it is very valuable that you understand what the needs and preferences of your employees are. You can do surveys, interviews or open meetings to gather information about their wishes.
- Align incentives with your company's objectives: The incentives must be in line with the objectives you want to achieve as a company. For example, if you are looking to increase sales, sales incentives with commissions could be the best option for you.
- Offers several options: Preferences may not be the same among employees, so you can offer several incentives, so that they can choose the ones that best suit their individual needs.
- Customize to the max: If possible, customize incentives to fit each worker's specific needs. For example, some employees may prefer additional time off, while others value a financial bonus more.
- Evaluate the cost and return on investment: These incentives have a cost for your company and you must calculate the investment with respect to the benefits you expect to obtain in terms of productivity, employee retention and a good office environment.
- Clearly explain the incentives: Make sure your team fully understands the incentives you offer them, including the results expected of them. Transparent communication is key to making an incentive program work.
- Consult with professionals: If you have difficulties determining the appropriate incentives for your company, you can seek advice from consultants specialized in this topic.
Now you know some of the types of employee incentives that you can use to motivate your team. In GumsUp, we work so that your workers achieve their greatest potential, so that your company can achieve success in its field. If you want to know how we work, you can take a look at the free software demo GumsUp, where you will find good personalized advice.
