Bump Up Bonuses

Publication: Human Capital Online
Date: December 2008

Excerpt:

Adrian Finlayson, CEO, Accumulate, suggests that companies can devise their own staff cost –effective reward and recognition programs if they keep some simple points in mind.

“The size of the investment made when determining a reward program and the value of staff rewards given should be commensurate with the expected commercial return. Identifying and defining the right behaviours to help achieve business targets such as customer retention rates, service levels and cost efficiencies will make a program much more successful than a simple one–size–fits–all approach,” he said.

“Reward management software, which provides human resources managers a system of ‘reward points’ to allocate staff, is also becoming increasingly popular in place of a monetary ‘bonus’ scheme. These programs are very specific to the organisation and people, and they also allow employees to earn, accumulate and redeem points for their chosen reward,” he added.

The result is a tailor–made morale boost, which will benefit both employee and employer beyond the short–term and encourage loyalty and productivity from staff in the future – an asset Finlayson suggests is invaluable to any business.

“Recent research shows that 20% of Australian employees are actively disengaged at work and costing business in excess of $31 billion dollars. While it is not hard to spot disengaged employees, there are a number of strategies that can be employed to target and motivate them,” he said.

“Putting in place a structured R&R program, carefully tied to a companies specific values is invaluable to a business looking to build loyalty and drive excitement in their employee base.”

And whilst reward and recognition programs should be an important ongoing initiative, the effects of the economic downturn on work environments and employee sentiment mean that companies should perhaps pay more attention to these schemes now, more than ever.

“With the market downturn, business must act quickly to determine the real cost of disengaged employees, Christmas time is the perfect opportunity to implement strategies to realign employees’ focus on behaviours and work practices that deliver efficiency gains, cost reductions, retain customers and secure sales,” said Finlayson.

For more information about the Accumulate employee recognition rewards programs and software, sales & channel incentive programs or customer loyalty programs call 1300 733 725 or email info@accumulate.com.au