Top 10 Benefits Of Employee Incentives Programs
By Dean Schwartz (SWAG Master):
Employee incentive programs improve morale, strengthen your customer base, and help take your business to the next level. Don’t take our word for it- just take a look at the data, then click here to register for our free webinar to learn more.
Top 10 Benefits of Employee Incentives Programs
As they say, the proof is in the puddling. If you need some motivation or justification to get an employee incentives program started, we’ve got the stats for you.
1) Stay On Trend With Incentives
According to a recent marketplace study conducted by the Incentive Federation, employee reward programs are now the most prevalent non-cash program type.
72% of U.S. businesses have one or more employee incentive programs!
If you’re not rewarding your employees then they’ll find a company that will, as evidenced by Fact #2.
2) Recognize Your Employees
Recognizing your employees is so vital that nearly 80% of people who quit their jobs do so because of a lack of appreciation, which leads us into Fact #3.
3) Attract Quality Employees + Reduce Turnover
Organizations that offer incentive programs attract and retain higher quality workers than other organizations. A study by the Incentive Research Foundation found that firms with effective incentive programs enjoy 31% lower turnover. As a result, your incentive program will lead to a happier, more engaged workforce, due in large part to Fact #4.
4) Frequent Communication = Happy Employees
Now we’re doing some math! Nearly 95% of employees who report being happiest at work say their manager regularly communicates and excels at giving feedback. An employee incentive program ensures your employees are constantly engaged by managers, which results in Fact #5.
5) Improve Performance
If selected, implemented, and monitored correctly, incentive programs increase performance by an average of 22%. Team incentives can increase performance by as much as 44%.
6) Focus On An Area That Needs Most Improvement
Data indicates that the most common main objective of employee programs is improving morale (84%). Improving productivity (58%) and improving customer satisfaction (48%) come next. Other objectives include recognizing years of service, promoting innovation, wellness, and/or safety, rewarding completion of training, and promoting cost control.
As you can see, there are plenty of options, so you can focus on any area you feel needs improvement. Regardless of program type, Fact #7 will occur.
7) Improve Brand Perception
70% of customer brand perception is determined by experiences with employees. Those men and women on the “front-line” dealing with customers are among the most important people to your bottom-line. When your employees are happy, your customers are happy, and your brand will benefit, due in large part to Fact #8.
8) Increase Rate Of Repeat Customers
Not only will 41% of customers return to a company because of their employee’s attitude, but 68% have reported not returning to a business due to poor customer service. Higher employee productivity leads to higher morale, which results in Fact #9.
9) Improve Customer Service + Increase Profit
When your employees are motivated to work, they’re more likely to improve their customer service, leading to higher profits. A report revealed that 9 in 10 Americans are willing to spend more with companies they believe provide excellent customer service. Still wary of its potential impact on your business? Check out Fact #10.
10) CEO’s & Managers Agree Incentives Are Effective
Don’t take it from us! Respondents were resoundingly positive regarding the intangible value of award programs. Across all measures of intangible value (e.g. training, teamwork, learning, morale, culture, organizational values, and innovation) the average score for award program effect was 5.5 on a 7 point scale.
Thankfully, SOBO has trained professionals that will help get your employee incentives program launched. Click here to RSVP to our February 1st webinar to learn more about your potential program! Call 888.752.0432 or email firstname.lastname@example.org for more information.