The best incentivizing mechanism
Most companies in the market today must offer incentives to retain their best employees; most would opt for material incentives which are mainly financial incentives, and it is one of the best mechanisms of incentivizing employees. Issuing of bonuses and recognition of work effectively done by employees makes them feel appreciated and their knowledge and hard work is seen as vital and of importance to the company for example when an employee or team of employees work exceeds expectation or is well done and results in profit, positive publicity or prosperity of the company, the efforts of these employees should be recognised and appreciated. Financial incentives take varied forms which include cooperate events , commissions and bonuses, gift cards, upward mobility, paid time offs, and many more.
Other mechanisms of employee incentives exist which are mainly non-financial and non-materialistic; these incentives are seen in most situations as being self-interested such as psychological benefits of power and office and are seen as biased at some point; for example, travel incentives may be beneficial and enjoyed by the young and unmarried but may be a burden to the old and the married ones with families. Thus the financial incentives is the most appropriate to satisfy all employees in the company.
This mechanism is more effective in employee retention as compared to other incentives such as setting of benchmarks either team or individual which may eventually disfranchise an employee; the team benchmarks may also result in internal competition in the company.
Through financial incentives, the personalization of values in the company is achieved; an employee feels accepted and of value and their contribution is recognised in the company. It is a more realistic and tangible way of incentivizing that can be felt and that is beneficial to all employees. It should be noted that a financially incentivized employee is a productive employee.
Reference
Achim, K. (2009). Performance Management for Different Employee Groups: A Contribution to Employment Systems Theory. Springer.
Capacity Development Group,Bureau for development policy United Nations Development program. (2006). INCENTIVE SYSTEMS:INCENTIVES, MOTIVATION, AND DEVELOPMENT PERFORMANCE. UNDP CAPACITY DEVELOPMENT (pp. 7-10). UNDP.
Connelly, J. (2010, september 3). seven surefire steps of incentivizing Employees. Retrieved february 13, 2012, from Business review Canada: http://www.businessreviewcanada.ca/marketing/seven-surefire-steps-incentivize-modern-employee
