To decide on a company’s incentive plan, the organization has to have a strategic reason identified. It usually depends on the size of the organization that gives key reasons for establishing incentive plans. The reasons for incentive could include; attracting employees or keeping current ones, reducing absenteeism, or lateness. The organizational objectives should coincide with the incentive to make the company’s better.
Citizens has had a problem with employee’s coming in late and have established a disciplinary policy, but also has established a reward incentive for the employees who are always on time. The company gives time off quarterly to one employee per department; they will receive a half day off. The half day off is restricted during the busiest days, but has to be done on other occasions with a supervisor’s approval. ...view middle of the document...
The employees strive to get that extra day off and get paid for it, this has kept employees from taking too many days off.
The incentive plan that is used by Citizens keeps employees coming to work by given these rewards. The time off given to employees is used by employees for extra day vacation days or to leave on early on Fridays. It gives employees a reason to stay with company and keeps the organizational objectives by keeping absenteeism low and employees coming on time. It keeps the employees productivity and morale up and it gives them something to strive for.
Althoughincentives are helpful in by reaching organizational goals, care must be taken to make a plan with specific objectives. Taking an inventory of organizations current benefits and incentives plan with a comparison to any local industry standards is required. Getting the incentive plan in writing and proper feedback will clarify the measurability and effectiveness of a plan (Renk, 2010).
Incentive plans work as long as they meet goals and objectives of the company. The incentive plans do not work when incentives are geared to specific departments who are not the same as others. Giving different department’s different incentives may promote favoritism and jealousy. The employees must believe they are valuable and are treated fairly and that they deserve the same as other departments. Not establishing proper incentives and policies could promote confusion and make the company not achieve goals and objectives (Renk, 2010).
Karen Renk (2010 March)"The power of incentive programs: the right incentive program can motivate ordinary people to do extraordinary things". HR Magazine. FindArticles.com. 01 Mar, 2010. http://findarticles.com/p/articles/mi_m3495/is_9_49/ai_n6206614/
Cascio W, (2006) Managing Human Resources; Productivity and the quality of life Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc, 1221 Avenues of the Americas, New York, NY, 100200. Copy right.