Staff incentives, such as performance-related bonuses, can help boost staff performance. The rewards usually relate to the achievement of certain goals, either personal, team or organisational, or a combination of all of these.
Staff perks are benefits given in addition to salary as a means of increasing satisfaction at work.
Pay is often the most important staff motivator and incentives and perks must not be seen as a substitute for a good pay scheme. See set the right pay rates.
Staff incentives, rewards and perks do not have to be expensive and some are even tax free.
Business benefits of staff incentives
An effective system of staff incentives and perks could help:
- persuade staff to join your business
- retain existing staff
- increase staff motivation, morale and loyalty
- boost productivity
- link individual and business performance
- focus employees on achieving targets
- build teamwork
Some incentives and perks may benefit your business indirectly, eg free health assessments may reduce staff absence and sickness.
Perks and incentives can form an attractive element of an employment package by:
- enhancing the quality of working life
- rewarding staff efforts
- adding value to the employment contract