Running a Successful Incentive Program

Employee Performance Programs That Work

Asking the right questions is key to getting results.

The role of Human Resources within a corporation has been significantly repositioned in recent years. At one time, it was seen primarily as an enforcer of policies. Now, it is considered among top-performing organizations to be a key partner in driving and supporting critical business objectives.Leadership Role

That’s why, when new HR incentive programs are brought to the attention of corporate management, it’s necessary to spend time establishing the correct objectives, especially those linked to broader organizational goals. This will ensure that HR continues to play its leadership role in the organization.

Before establishing your HR Incentive Program, it’s important to consider these eight key questions:

1. What are the objectives of the HR program? 2.How are these objectives connected to broader corporate goals? 3. Are the objectives observable and measurable? 4. Are your evaluation criteria for success in the program based on these objectives? 5. Do the criteria indicate improvement between expected and actual performance when measured against your objectives? 6. Have you selected the correct incentives and learning programs to influence the employee behaviors required to meet the program objectives? 7. What data sources are already available to help measure results? (Productivity reports etc.) 8. Are there alternative methods for gathering data? (Interviews, on-site observations)

By ensuring that you have clarity on the answers to the above questions before launching a new HR program initiative, you will be well on your way to ensuring that program’s success.

Running a Successful Incentive Program

Employee Recognition Rewards Raise Morale

Raise Employee Morale. Reduce Turnover Costs.

A total reward approach can attract and engage employees.

Today’s best companies offer total rewards packages that go far beyond just compensation and benefits to attract, retain and engage employees. An excellent total rewards package will lead to positive changes in workforce behavior, reinforce overall business strategy, and ensure organizational success for the future. Organizations need to consider the following when designing an effective Reward program: Compensation, Benefits, Work-Life Balance, Performance and Recognition, and finally Development and Career Opportunities.

As the labor market shifts and we all begin to compete for the same resources, the well informed employee will come to expect Total Reward programs that combine these elements and that bring value to the employee (value as defined by the employee).

Immediate recognition awards like fuel savings cards can play a significant role in Performance and Recognition elements of a total rewards program. As these rewards generally come from immediate supervisors as a result of specific performance or behavior, they are viewed by the employee as being highly personal and potentially more engaging than a future pay day deposit "from the company."

The market has shifted and it is no longer sufficient to drive only compensation and benefit program efficiencies and cost controls — HR must manage the "value exchange" through recognizing that engaged employees create value for their organizations in return for tangible and intangible rewards.

Running a Successful Incentive Program

How to Measure Your Success

Follow these steps to track your incentive program’s performance:

1. Establish your objectives

It’s important to determine what you hope to accomplish before your promotion even begins so that you have a basis for measurement. Decide whether you want to increase quantities or sales, for example, and consider the best marketing solution—be it an incentive, direct mail, or mass media—to effectively promote your initiative.

2. Make use of metrics

Metrics are the measure of objectives that let you know how your program performs. Effective metrics cover all aspects of the program from response rates, purchases and click-thru to time spent on a site and return on investment. Keep in mind that effective measurement should go beyond evaluating the output of an incentive program, which accounts for things like number of media impressions, and should expand to examine program outcome, like a change in behavior, opinion or other consumer engagement.

3. Track your program with effective tools

Of course, your incentive program has to follow the objectives and strategies outlined in the pre-planning stages. As a general rule of thumb, if you change your plan, you have to change your metrics. Furthermore, once the program is in market, metrics should be tracked on an ongoing basis. Remember to submit your email at incentives@petro-canada.ca to receive our integrated Excel tool for help with tracking costs and measuring program results.

4. See how you measure up

When it comes to measuring your results, we recommend diagnostic elements where possible and suggest looking at the program from an objective, unbiased perspective. Not only will this help you determine an incentive program’s success, it will also uncover why it worked or didn’t work.

5. Interpret your results

Once the incentive program is complete, take a look at the results to see if you achieved your goal. Ask yourself if the program would work if tweaked slightly or if it was not effective at all. Unfortunately, there is always a chance that you won’t successfully meet your initial goal. But without measurement, you will never know the extent of your accomplishments or the opportunities that exist for improvement in the future.

Keep your incentive program in tip-top shape

Keeping Your Employees Motivated during Challenging Times

Motivation is a major challenge for Human Resources professionals. In the context of mergers, acquisitions and downsizing, keeping your people performing at their peak can mean the difference between achieving your goals and missing the mark.

The right incentive program can reward your employees and keep them motivated.Best Practices for Employee Incentive Programs

We’ve done the research and put together some quick hints for an effective incentive program.

*Employees want to redeem their rewards quickly, conveniently, and economically.

*Choice is an important consideration, making gift cards the most popular incentives.

*Give incentives that enable employees to recall their accomplishments every time they use the reward, combining emotional impact with relevancy.

*Programs designed to influence employee behavior need endorsement from senior staff, typically supported through internal marketing communications.

*Management needs to also convey endorsement of the program goals, and how these goals will be measured, and achievement rewarded.

*Internal communication programs — newsletters, posters, websites, and emails — should convey incentive program goals and objectives, and staff achievement creatively.

*Encourage managers to talk about the programs during weekly meetings, one-on-ones, or around the water cooler. Over time staff will embrace and endorse the program.