In a slow economy, employees have fewer opportunities to take a job at another company, but entrepreneurs would be remiss to take their fingers off the pulse of company morale simply because employees have fewer options. “Companies that don’t think about employee incentives and basically rest on their laurels and think ‘the economy means fewer jobs therefore, where are they going to go?’ Are the companies that, as soon as the labour market picks back up will see their turnover rates going from 5 % to 50 % and it will happen overnight,” says Mark Murphy, author of The Deadly Sins of Employee Retention and CEO of Leadership IQ, a Washington D.C.-based executive education firm.
So what’s one of the biggest reasons people quit their jobs? One of the major reasons is being dissatisfied with their supervisor. In the cramped confines of a small business, with the pressures of work, the relationship between employees can be tested on a daily basis. In bigger companies there are more opportunities to move to other jobs if you’re dissatisfied with a particular supervisor, whereas smaller companies may have less options so they run the risk of losing the employee.
I recently came across this excellent blog providing a simple overview about how to put together an incentive plan. Most businesses think that incentivising employees and developing an incentive plan needs to be complicated, but it doesn’t need to be!
The end goal of an incentive plan is aligning the business objectives with what is needed from your employees and striking a fine balance. As the employer you should know your strategic plans for success and growth, therefore it’s just a matter of finding out what matters to your employees.
Finding the right balance and ensuring that all measures are realistic will ensure a simple but effective incentive plan.
Checkout the full article at www.hr.com
Found this excellent blog and wanted to share it with all our followers, the full blog is at: http://www.gympietimes.com.au/news/incentives-pay-with-loyal-staff/1768694/
It is so refreshing to see others recognise the keep it simple and communication with employees approach as being key factors for incentivising them.
So close, yet so much to do…
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