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How Bonus Schemes for Employees Motivate Your Workforce

Everyone likes being rewarded for their achievements, but there are very few jobs that offer financial incentives for meeting targets. If you work in a management role you could earn bonuses for hitting targets but your staff may not. So if you are thinking of setting up bonus schemes for your employees, what should you consider?

Department

Whether you are in a sales environment that lends itself to targets or an administrative area of the business that doesn’t, targets can be set for hitting deadlines and achieving team goals. The targets should motivate and encourage.

Motivation

Some bonus schemes for employees can actually demotivate them so you have to be careful to set achievable goals. If the target is too high the employee could back off. You should also give plenty of time to achieve the target. Setting monthly, quarterly and annual targets allows people to plan their work and may benefit the business as they can spend weeks cultivating a sale that would be ignored if only short-term goals are set.

Administrating the scheme

Although it’s motivating for the workers, it shouldn’t be a headache for management. You should make sure that the targets you set can be monitored by the system. You can’t set a target for phone calls if your telephone system can’t record the number of calls made. You also need to make sure that the target can’t be corrupted by employees. A sales admin team who post the sales to the system could remove a sales rep’s temptation to alter figures and will allow the team to concentrate on achieving their targets. Auditing the results is time consuming, so it’s far better if another team deal with the administration.

Final word

If a performance based culture isn’t right for your business but you want to offer bonus schemes for your employees, what can you do? A profit sharing scheme could offer your employees a reward without asking them to achieve set goals. It’s easy to administer and gives the employee the sense that they are part of the company.

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