Tips for effective employee incentive schemes

Was reading through the latest Computer
and came across a couple of article dealing with employee incentive schemes.
They made quite interesting reading, especially as there were lots of comments from
practitioners in the field, including David Yu, CTO and COO of Betfair,
amoung others. The page also included a small box with Tips for Effective Incentive
Schemes which I wanted to iterate here so I can find it quickly in the future. Here
we go:

  • An incentive scheme should recognise exceptional performance
  • If bonuses become “automatic” they cease to incentivise staff
  • Team-based bonuses can be strong team-binding “glue”
  • Linking rewards to mixed IT and business teams can demonstrate the crucial interdependant
    of both sets of staff to company success
  • General bonuses can cause dissent if rewarded employees are felt to have underperformed,
    but individual bonuses can cause jealousy and resentment; fairness is critical
  • If smaller bonuses are spent on luxury items the reason for earning them will be better

It was interesting to read these “tips” and put them into some context based on past
experience in places I’ve worked or clients I’ve worked at. The last point above was
a novel one to me; however I can see how adding an emotive context to an incentive can
give it lasting impression in a person’s mind. At the end of the day, what is more
memorable, an extra ?100 in your pay packet or a night out on the town?

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