Top 25 Employee Incentive Programs from the Pros

In this article, we look at the most popular programs that employers have used to keep their workforce motivated. These programs include
– Cash Incentive Programs
– Corporate Perks
– Stock Options and more. We also briefly discuss how these incentives are managed from a legal perspective. If you’re looking for an incentive program of your own, then this is definitely worth a read!

The “companies with best incentive programs” is a list of the top 25 companies that offer the best employee incentives. These incentives can range from cash bonuses to stock options.

Employee incentive programs use money and perks to compensate and motivate employees’ performance. The majority of studies shows that money alone does not motivate workers to perform at their best. As a result, we polled leading executives and performance development specialists to find out what kind of employee incentive programs work best for them. The following are their suggestions.

1. Prioritize top-rated employees for new positions.

Derek Christian, owner of Blue Ash’s Handyman Connection

All of our technician incentives are based on the feedback they get from our customers. Our customers get an email after each service asking them to rate the service they got. The craftsman with the greatest ratings get a bonus and first pick of new tasks when they become available as the ratings come in.

This method has centered all of our artisans on ensuring that our customers are satisfied with their experience with us, resulting in increased repeat business and recommendations.

2. Invest in Learning & Development Programs

GoodHire’s VP of People, Marielle Smith

Learning and development programs may be great motivators for workers to improve their performance, and investing in them is a win-win situation for both the business and the individual.

A well trained person is more valuable to the business, and the individual benefits since they are expanding their skill set, which frequently leads to higher job satisfaction and makes them more employable for future work.

We have the industry’s most comprehensive call support agent training program, and several employees who started as hourly-paid agents have successfully progressed through the company to positions in sales, customer success, IT, and engineering, where they are salaried positions with full benefit packages.

3. Profits should be shared equally.

Xero Shoes CEO Steven Sashen

We have a profit-sharing scheme in which the funds are distributed evenly among all of our workers. When we originally introduced it and issued the first payment, it had a noticeable (positive) impact on morale and productivity.

4. Assign bonuses to certain projects.

Client Acquisition Lab’s CEO, Davis Lin

For my own firm, I normally deal with contractors/freelancers on a project-by-project basis. I utilize a project bonus to motivate them. I would give my contractors/freelancers an extra bonus if they could finish the job within the stipulated time limit and fulfill all of my project criteria. I’ve noticed that after introducing this incentive scheme, I’m getting more and more jobs finished on schedule.

5. Reward Employees Who Achieve Their Objectives

Fit Small Business, Marc Prosser

Employees that get ambiguous feedback from their bosses will just preserve the status quo. After all, why change anything if everything is going well? Employees are more motivated and have a stronger influence on your organization if they are given concrete objectives and their performance is tracked and rewarded. Managers may use Zoho People to define objectives, identify important performance areas, and provide 360-degree employee feedback. Employees may also rate and evaluate each other anonymously, as well as examine and upgrade their own abilities. For a limited time, you can try Zoho People for free.

6. Make Key Performance Indicators (KPIs) a reality (KPIs)

MonetizeMore CEO Kean Graham

We used the following color scheme to construct a key performance indicator (KPI) system in line with our management and workflows:

Green: A+++++++++++++++++++++++++++++++ Blue: Excellent Yellow: There is room for development Red is a terrible color.

The best score is in the green KPI range, while the poorest score is in the red KPI area. If the team receives a yellow, they must have a meeting to discuss how to raise the KPI score. If it’s red, they need to make improvements right away in order to enhance their score for the following assignment.

Due to a lack of clear and visible objectives, team members were demotivated. We’ve witnessed better communication among teams, more inventive thinking, higher work ethic, and improved morale with more transparency since establishing this KPI system for the organization and each team. Members of a team are members of a group that is working toward a shared objective. The KPI system has been one of our most successful corporate inventions.

7. Distribute Net Billings

FIFTEEN’s Zack Schneider is a partner.

If a team member brings work into the shop, we split three to five percent of the account’s net billings for the first three years. Because we don’t have a professional new business or sales person on staff, it’s critical that everyone, from interns to senior management, knows the value of being a brand ambassador for the agency and helping it expand. Our success is dependent on theirs. The goal is to not only reward the team with a sale, but also to assist in making the account more efficient by improving the quality of work.

Because our team members have brought us opportunities that would not have been accessible via mine and my partner’s networking links, we know it works. I like writing these checks because they demonstrate that I have a dedicated workforce that is invested in the agency’s success.

8. Link Bonuses to Upgrades for Customers

The Cover Guy’s owner, Jay Labelle

For our industry, we pay our workers quite well—better than most. In our workplace, we’ve been able to keep a solid core group of people. Increased sales year over year and profit margin are the two things that boost our profitability. These two performance metrics are the only focus of our incentive program. Our incentive schemes result in a 20% year-over-year rise in sales, with a bonus for improvements added to each (customer) purchase.

The intriguing part is that these enhancements are requested by customers, as seen by our online sales results. As a result, it’s generally only a question of asking whether the buyer wants the improvements.

Our analytics continue to show that our year-over-year figures are on track to meet our objectives. We also know it’s working because the bonuses are being paid out. The success rate of performance programs is quite high, which benefits the organization, the employee, and the customer.

9. Create quarterly incentives that are specific to each employee.

On Location Tours’ President, Georgette Blau

Every employee is compensated differently, therefore we provide a variety of incentives, including cash, gift cards, additional time off, and short vacations. Written objectives that range in length from two months to a year, but are usually little more than a quarter lengthy, are constantly monitored.

10. Provide Excellent Benefits

Fit Small Business, Laura Handrick

Medical, dental, vision, COBRA administration, and workers’ compensation are all “must have” health benefits for fast-growing enterprises looking to acquire and keep top employees. Going above and above these standards, on the other hand, is one approach to keep staff pleased. With Zenefits, you can compare employee benefits from over 250 national insurance providers, including commuter benefits, FSAs and HSAs, and more. Employees may also self-enroll and manage their benefits online, and Zenefits interfaces with its own payroll software as well as third-party payroll software. For a free trial, go here.

11. Express Sincere Appreciation

Roger Morgan, Founder & CEO, pawTree

Money and other forms of remuneration are certainly motivators and important, but I’ve found that showing genuine, heartfelt appreciation for people’s efforts, coupled with sincere compliments that reinforce the behavior you want most, is the most immediate, and also the longest-lasting, tool for driving employee performance.

When you have long-serving, committed staff who provide the outcomes you want, you know it’s working.

12. Seek feedback from your employees

Howard Corporate Centre, LLC, LaTaunya Howard, Founder

Although exact tactics differ from employee to employee and position to position, I have found that ensuring that employees understand how their job contributes to the organization’s overall goal and functioning is a simple but effective strategy to drive employee performance.

In essence, all workers want to feel appreciated and that their work matters, and keeping this in mind via open and ongoing communication goes a long way toward garnering employee buy-in and forming a team that is invested in the success of the firm.

I think it beneficial to gather direct input from workers, whether via one-on-one conversations or employee surveys. During performance review times, I also urge workers to offer their own self-evaluation, which allows them to critically assess themselves and their roles, as well as suggest methods to increase performance and motivation, if necessary.

13. Provide Both Financial & Non-Financial Recognition

Magic Murals, LLC’s CEO, Mike Fleming

I reward great employee performance in a variety of ways, both monetary and non-monetary. In terms of finances, all Magic Murals workers are members of a profit-sharing scheme. I usually give those cash out immediately before the Christmas season, when people are most grateful. I also provide monetary incentives to staff that go above and above the call of duty throughout the year. My team members not only love the money, but they also value the recognition.

On a non-financial level, I ensure that all workers are acknowledged for their outstanding achievement inside the firm. This public acknowledgement might come in the form of an email announcing the conclusion of a major project or a large sale, as well as naming the workers who helped make it happen. It might even happen during a routine team meeting (complete with lunch). I also make a point of personally thanking everyone for their hard work and contributions to the organization on a frequent basis.

The business culture at Magic Murals, on the other hand, may be the most important incentive program. We’re a small group of less than twenty individuals who all know one other and feel like family. Because that’s what families do, everyone works hard, helps each other out even if it’s not their job, and so on.

Those monetary incentives are clearly valued, as seen by comments received at profit sharing awards. Employees may periodically remind me during the year that “we have to get this done as quickly as possible—we have a profit sharing program, you know.”

That seems to me to be a very solid sign. Even though unemployment in our region is at historic lows and jobs are available, I’d say our employee churn rate of zero is a terrific sign of success.

14. Use Meetings to Track Goals & Performance

DJ Taylor is the owner and coach of DJ Taylor Productions.

To keep track of personal goal progress, I’ll meet with coaches one-on-one to ensure they’re on track with their plan. In most cases, certifications and courses provide rapid feedback (pass/fail). Once a week, we meet with our general manager and front office to review and discuss financial estimates and outlooks, as well as the contributions of each coach.

I personally advise our coaches to have a long-term objective or goal in mind. These objectives are based on particular career paths as well as financial and other facility goals and needs. This may include hosting certifications and inviting professionals on site, as well as planning excursions to distant events. We will have performance-based incentives on a seasonal basis.

15. Give Your Employees a Cut of the Profits

FishTankBank’s owner, Max Robinson

By far the finest employee incentive program we’ve ever designed is the profit sharing one we presently utilize. It motivates our staff to put more effort into their job since they know they will be rewarded. Regardless of their status, everyone in the company will get the same amount.

Our workers are rewarded with a predetermined proportion of earnings, which avoids the need for objectives (which I’ve discovered may sometimes lead to employee rivalry). It’s also made the team feel more unified, which is something I didn’t anticipate. We now have profit-sharing meetings on a monthly basis.

16. In addition to profit sharing, provide performance bonuses.

HeadsetPlus.com owner Yungi Chu

For the last 30 years, I’ve been a company owner. I’ve always provided monetary prizes as an incentive:

• Bonuses for month’s best workers are one example.
• Bonuses are given for making few or no faults in the preceding month.
• Bonuses for the best salesman of the month

The finest one is when an employee remains with the firm for two years or more, I enroll them in the profit-sharing program. The longer they remain, the more the profit share they will get. This gives the employee a sense of ownership in the organization. This has served me and my company well over the last 30 years.

Volunteering should be rewarded with time off.

Tyler Butler, Founder & Principal, 11Eleven Consulting

Providing your employees with both internal and external volunteer opportunities may be a great motivator. Businesses with lean teams are frequently in need of enthusiastic beavers to spearhead grassroots events like Take Your Kid to Work Day.

These sorts of experiences provide you a lot of joy since you get to design an engaging service that will benefit workers and their families in a big manner. This meaningful work you lead will have a broad reach and a long-term impact on the company as a result of this purpose-driven activity.

18. Offer Better Options for Health & Wellness

Unito’s CEO, Trevor Longino

Here’s what we have to give (as an incentive):

In addition to private health insurance, $1,000 per year is set aside for “wellness expenditures,” such as self-improvement, gym memberships, bike rental services, and so on.

Unito is situated in Montreal, and we’re a very modest company among a sea of much larger companies. Incentives must be improved in order to attract talent.

19. Disseminate Your Founder’s Knowledge

ThoughtSTEM, LLC founder Lindsey Handley

Our employee reward program is a one-of-a-kind concept. Because after-school programs only operate for a short period of time after school (about 2:00 p.m. – 4:00 p.m., Monday – Friday), it might be challenging for us to keep personnel. To encourage workers to remain with us, we’ve begun offering free adult computer science education seminars to anyone who want to improve their computer skills.

Stephen Foster, our CEO and co-founder, who has a Ph.D. in computer science, leads the sessions. Our staff are studying complex computer science subjects that are typically taught exclusively at institutions.

20. Surprise your guests with a special treat

Cuuver.com Founder Steve Pritchard

Employee incentive schemes, in my experience, function best when they aren’t too restrictive. I dislike having a defined structure in place that states that staff will get a certain incentive if they accomplish a certain level of sales or outcomes. The reward should seem like a rare gift for doing something exceptional, rather than something they anticipate to get on a regular basis at the conclusion of each assignment. I want my staff to be driven by attaining company success, not by the rewards that come with it.

So, following a particularly excellent week or set of results, I reward my staff to a relaxing day of eating pizza for lunch and drinking a couple of beers while watching their favorite TV series. This provides them with a relaxing afternoon off as a reward for coping with their job and any accompanying stress.

I don’t do it too frequently (as that would devalue it), and I don’t plan it either (as that would make it too strict), but every now and then I will remind them that we’ll be taking some time off at the end of the week. This manner, the team knows I will reward their efforts if they go above and beyond, motivating them to work harder without the incentive being an expectation or responsibility, and without their working just for the reward rather than for the success of the company. It’s a long cry from the formal incentive schemes that most businesses have, yet it works.

21. Plan a Team Outing

JButler International’s CEO, Jeff Butler

We offer an end retreat or weekend for both sales and non-sales personnel that fulfill their quarterly targets. The bulk of the team must be interested in the “getaway.” As a result, you’ll have both an incentive plan and a team-building event at the end of the year.

22. Give More Frequent Bonuses & Raises

Rochelle Graham-Campbell, Co-Founder & CEO, Alikay Naturals

Bonuses and increases are awarded in quarterly performance assessments as part of our incentive programs. We are open and responsive to input as a means of fully comprehending what the employee is saying throughout these evaluations. Quarterly performance reviews are more than simply a score; they are a chance for both management and employees to learn more about what adjustments can be made or to discuss problem-solving.

We determine success by reviewing the employee’s overall performance in the next quarter and setting concrete targets for them to achieve. It is critical that the objectives be strategic and clear in order for the employee to understand what is expected of them and how those expectations fit into the company’s larger goals.

23. Establish a system for determining priorities.

Founder of BubbleBum, Grainne Kelly

We have a framework in place for determining priorities. We develop goals together and set five priority with completion dates each week, which are then moved to the completed list after they are met. This is assessed both individually and as a group. You are betraying your team if you do not meet your objectives.

We have a strong set of values that everyone on the team has written down, and I think that they are what make our team feel like they belong. We concentrate on assisting each individual in being the best they can be—always exceptional, never average—and challenging their talents accordingly.

24. Allow teams to brag about their accomplishments.

Stefan Debois, Founder & CEO, Survey Anyplace

We have each team discuss their successes from the previous week, their responsibilities for the next week, and critical concerns that other teams can assist with or need to be aware of at the weekly meeting, which is ideally held in a set time slot on Monday morning. If you run a tiny business, the “team” might be only one person.

We know it’s working since we’ve witnessed an improvement in productivity since we codified the procedure. Employees and team leaders have also said that, as a result of the weekly commitments they make during the meeting, they have adopted a higher GTD-degree (Getting-Things-Done) method of working.

25. Create an enticing mission

Josh Wadinski, Founder & CEO, Plantioxidants

I learnt what good incentive programs look like for established firms after working at and with multiple Fortune 50 companies. Plantioxidants has the majority of those financial components (e.g., competitive salary, very strong health and dental benefits, vacation, and a modest life insurance policy).

A crucial motivator for a start-up or small firm, apart from financial factors, is the goal itself. You want to identify people who are enthusiastic about the world you’re attempting to build and eager to assist in getting us all there.

As a result, the incentive becomes the objective, and achieving it becomes an unquenchable challenge. The motivation at Plantioxidants (including mine) is fueled by a desire to help people live healthy, sustainable lifestyles. Finally, I do biannual assessments to ensure that my workers remain engaged and incented, both monetarily and in terms of our shared objective.

I make a conscious effort to speak to new workers about their long-term goals three and five years after they start, and I keep it in mind as we expand. I want them to achieve their objectives and realize their aspirations, even if they do not work for Plantioxidants in the future. Initial candid check-ins, as well as at least two year assessments, are excellent methods to see whether staff are motivated (again, under the assumption that the incentive is working hard to accomplish the mission).

BONUS: Give the Business Away

IdeaRocket LLC’s Creative Director and Founder, William Gadea

We’ve gone a step farther than just establishing a bonus scheme. My objective is to progressively hand up a third of the firm to workers over the next 10 years, after which I intend to retire.

At that time, the employee holding company we’ve established would begin to gradually buy out the balance of my stock, maybe over the course of 20 years or so. So, yeah, I’m now distributing a share of income to my staff. However, there is also the possibility that they may one day control the corporation.

It has had a significant impact on the culture here: workers now have a longer-term perspective of their relationship with the firm and act more like owners. It’s been a win-win situation.

Final Thoughts

You may have noticed a common thread running across these incentive programs: they’re all centered on what the employee wants in terms of profit sharing, personal time, family time, or a future in the company. As a result, the finest employee incentive programs aren’t generally financial bonuses, which are delivered and forgotten quickly, but rewards that provide meaningful value to the employee over time. What kind of incentive programs do you provide? Please share your thoughts in the comments!

The “incentives to motivate employees” are a top priority for many companies, especially in the current economic climate. The “Top 25 Employee Incentive Programs from the Pros” is a list of programs that have been proven to be effective.

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