The Pros of Pay for Performance
Most business leaders view incentive programs as nonessential, expensive and even taboo. However, a recent study shows that 90% of business leaders believe that an incentive program could positively impact their business, yet only 25% of them actually have a strategy in place. Organizations that struggle with productivity, recruitment, and retention should consider implementing an incentive program, also known as “Pay for Performance”.
The Health & Human Services industry is ever-evolving and, with the right rewards and tools, adopting an incentive program could be the gateway to organizational stability and success. The appropriate program can reinvigorate your entire workforce and help to push the overall performance of your organization. In order to successfully implement an incentive program, there are a few areas to focus on:
Attracting Talent
The job market is tough for everyone, including employers. Recruiting top talent has proven to remain a difficult task for organizations. However, surveys show that 42% of applicants consider certain positions because of reward and recognition program opportunities when seeking employment. The small differentials of these positions are what typically make one organization standout among hundreds of others that are also hiring.
Boosting Productivity
Successful managers know employee performance depends on employee attitude and behavior. Incentive programs can help motivate your workforce to perform to their optimum potential. 77% of employees reported that they would work harder if managers recognized their performance more often. Incentive programs can increase positive employee attitudes, engagement, and productivity, which will ultimately drive organizational success. With a structured program, organizations can be better equipped to achieve their goals.
Retaining Talent
Keeping employees happy is crucial and continues to be a challenge for many organizations. With 39% of employees feeling underappreciated at work, it’s no wonder organizational growth can be stunted. Employee turnover rates can often be costly and produce long-term workforce performance issues. With the assistance of the incentive program your organization can motivate its top talent to remain content in their current position.
While some incentive programs do not suit every industry, several organizations currently utilizing these strategies reported a 79% success rate when the correct reward was offered. With an increase in revenue, employee performance, and overall engagement, the importance of these incentive programs is becoming more critical. With the right tools in line to help build your workforce and its proper programs, is your workforce ready to start performing to their full potential?
This DATIS Blog was written by Erica Kavanagh, DATIS, on July 20th, 2016 and may not be re-posted without permission.
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