Performance incentives are effective ways to engage and motivate your employees and give them achievable, aspirational targets. For individual employees, performance-based incentives are rewarded in recognition of securing targets and displaying outstanding personal achievement. At organisational level, incentives can include stock shares, profit sharing or commission through sales incentive reward programmes.
A Harvard Business Review identified a strong link between performance-based pay and happiness, trust and loyalty across the workplace. Sharing organisational profits with employees, profit-related pay schemes showed less effective results than performance-based pay initiatives. Staff even proved to be less committed and trusting of management. The same study found no significant improvements for the workplace where collective share ownership was rolled out either1.
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We’ve helped many major brands integrate corporate gifting into their loyalty, engagement, and experience programmes.
The Rise of Non-financial Performance Incentives
Non-monetary rewards are proven more effective than cash-based privileges2. In fact, 63% of top-performing companies in the UK see greater productivity levels with non-cash rewards and incentive programmes in place than those without3.
Often called casual incentives, they’re personalised with the employee’s personality in mind4. Furthermore, 99% of people say they have a unique reward preference5.
From cinema tickets to once-in-a-lifetime experiences like flying a Spitfire or skydiving from 12,000 feet, experiential rewards offer choice, flexibility and personal recognition. They’re easy to share with family and loved ones and encourage a healthy work/life balance for employees.
Why Performance Incentives Are Important
Performance linked incentives provide clear, simplified goals with the added spoils of a reward at the end of a job well done. They work differently on an employee-by-employee basis. But by and large, they’re incredibly effective to help boost productivity, streamline workflows and enrich employee well-being. They're a tangible, memorable means of recognising innovation and encourage a culture of performance across the board.
Staff are more susceptible to improving and growing their skill set quicker with the knowledge that the right development tools facilitate better results. This strengthens the talent pool of the organisation, helping employees nurture and utilise their own potential. Shining a spotlight on higher performers also makes it easier to identify poorer performers6.
The Formula to a Successful Performance Incentive Programme
Align organisational goals with employee goals7
Match rewards with sustainable, realistic achievements8
Incentivise intrinsic behaviours that uphold company values9
Celebrate publicly on social media, in team meetings and company updates10
Benefits of Performance Incentive Programmes
Performance incentives are a proven way of motivating employees and boosting performance, which is why they’re so commonly used in a range of industries.
- 90% of top performing companies use recognition and rewards to incentivise their employees11
- There’s a 28% decrease in employee dissatisfaction compared to companies without an incentive scheme in place12
- 4 out of 10 job applicants weigh up rewards and recognition whilst searching for a new role13
- 77% of employees say they would work harder if they were better appreciated14
- Companies using sales incentives can expect 3x more sales revenue than those that don’t15
- Companies offering bespoke performance-related rewards see 79% goal accomplishment16
What We Do and How We Can Help
For 30 years, Red Letter Days have inspired customers to ‘live a little’ and make magical memories. With over 5,000 tailored experiences at your fingertips, you can access an end-to-end gifting solution with performance incentive rewards bespoke to your business needs – complete with personalised packaging, insert sheets and much more.
We work in partnership with renowned brands like Gordon Ramsay, Bannatyne and The View from The Shard, as well as smaller independent businesses offering truly unique experiences. From blissful spa days to driving blasts, explore our collection of imaginative, adventurous and indulgent gift ideas – perfect for employees to share with family, partners and friends.
As part of your journey, we’ll provide a dedicated account manager to oversee the deployment and look after you every step of the way, from order processing and fulfilment to customer service. Give your employees the tools to unlock their potential, simplify HR processes and fulfil your company vision with a business solution from Red Letter Days Corporate.
Sources
1. Harvard Business Review, 2017
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2. Engagement Trends, 2018
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3. Small Business, 2017
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4. Breathe HR, 2018
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5, 11. NXL Performance, 2019
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6. Business2Community, 2018
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7. Organimi, 2013
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8. The Balance Careers, 2019
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9. Forbes, 2015
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10. Officevibe, 2016
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12. Greatify, 2019
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13, 14, 15, 16. Hawkincentives, 2015
Get in touch
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