An increasingly popular way to improve staff performance is the implementation of incentive schemes. Some are still put off by worries that such schemes will either create competitive friction or be too costly but, with many benefits on offer and advice on how to hand out rewards correctly easily available, such a scheme is something that many companies only find benefits from.
The possibility of bonuses both attracts people to join a business and then helps the business to retain existing staff. Your job advertisement will have enhanced appeal if you are able to write next to the salary that there are bonuses to be had for hardworking individuals. Similarly, people are less likely to leave a company if they know they have a good thing going, and minimising staff turnover is extremely important for productivity and even cash flow.
Team rewards may motivate people to work productively as part of group and contribute for the benefit of all, rather than simply focus of their own task. Rewarding groups also brings people together and promotes a friendly atmosphere in the workplace.
Incentives can also make individuals more focussed on achieving a particular goal. If they know exactly what they have to do to receive a reward, employees are likely to stick at that task until it is done, rather than getting distracted by other less important jobs. Incentives therefore can help you make your employees prioritise and work at speed without requiring you to sternly dictate how important a job is and how quickly it needs doing.
The rewards offered must be affordable and appropriate to your business but, if you get them right, both you and your employees could see substantial benefits.