The Advantages of Incentive Plans

Tangible benefits of employee incentive programs include: increases in sales, performance, profits and productivity and decreases in accident rates and absenteeism. I recommend to clients that want to start an incentive program to have the duration last at least 6 months.

Lisa McQuerrey has been a business writer since He has given over keynote speeches across the U. Congratulations to all of our team members who have greatly impressed us with their top performances in ! Employees enjoying this kind of environment will be more likely to stay long term.

Employee incentive programs can eliminate this and can facilitate open communication among employees. Increase the profit of the company. This is the main reason why most companies have employee incentive programs.
The first and most obvious benefit of a sales incentive program is motivation. If your sales reps have seemed unmotivated in the past, a sales incentive program can jump start them and help them to achieve the kind of success that has eluded them previously.
A: The Medicaid incentive program is easier in that in an eligible provider's initial year they don't have to achieve meaningful use, as is required in the Medicare incentive program. In addition, there are no potential penalties and the incentives are not front-end loaded.
In , CMS established the Medicare and Medicaid EHR Incentive Programs to encourage Eligible Professionals EPs, eligible hospitals, and CAHs to adopt, implement, upgrade (AIU), and demonstrate meaningful use of certified EHR technology (CEHRT).
Along with programs to reduce tension and poor management practices, incentives and benefits can be used to boost employee morale and engagement levels at work. A Towers and Watson report advises that companies should place their focus on sustainable .

Tangible benefits of employee incentive programs include: increases in sales, performance, profits and productivity and decreases in accident rates and absenteeism. I recommend to clients that want to start an incentive program to have the duration last at least 6 months.

But sometimes employees get stuck in unhealthy habits and they need help adopting and maintaining healthy behaviors. The best way to do this is to provide small incentives, such as gift cards, to randomly selected employees who successfully complete different aspects of a corporate wellbeing program. We have great published scientific evidence that this incentive approach works.

It is the incentive approach that WellSteps recommends to all of our clients. Employees can qualify for a drawing if they complete a personal health assessment, biometric screening, a behavior change campaign, or a challenge. All employees do not get an incentive for completing the target behavior because that leads to entitlement. Instead, they earn the chance to win—sort of like the lottery, only not as big.

Just having a chance to win is fun and is sufficient to motivate most employees. For example, if a company with employees has complete a behavior change campaign, all employees are entered to win a small number of gift cards, prizes, or event tickets.

These small gifts given immediately upon program completion make the program more fun, create the opportunity for vicarious reinforcement, and provide substantial motivation at very little cost. Employers get even greater adoption of employee health behavior with a benefits-based incentive plan.

Benefits-based wellbeing incentive programs typically offer employees a discount on their insurance premium, paid time off, a contribution to an HSA or HRA, or a lower co-pay or deductible as an incentive. Benefits-based incentives are made available to all employees who do the work to earn the reward. The dollar amount of the benefit-based incentives should be large enough to motivate employees, but not so much that it creates an entitlement mentality among program participants.

Benefits-based incentive requirements should be substantial because the financial incentive should also be meaningful. When combined with simple, short-term prizes, benefits-based incentives will provide employees with enough motivation to get the wellness ball rolling until they begin to feel the internal benefits of a healthy lifestyle.

The WellSteps rewards program is our web-based incentive tracking platform. This platform allows employees to easily report completion of incentive requirements. Most often completion of requirements are reported automatically when employees complete a campaign or a challenge. Sometimes employers require their employees to provide verification that some activity has been completed. To make this process simple, the WellSteps app allows employees to take a picture of the verification and have it automatically uploaded to their account.

The rewards incentive platform makes it easy to track and validate employees progress towards earning their incentives. For the past 25 years, the C. Everett Koop Health Project has carefully evaluated wellness program applicants and awarded the very best wellbeing programs in the United States with the Koop Award. The application process is rigorous and requires programs to provide ample documentation that their programs improve employee health behaviors and reduce employee related costs.

It is the most rigorous wellness program evaluation in existence. The advantage to the employer is increased levels of productivity -- and increased productivity also becomes an advantage for workers. Most incentive plans are tied to earnings. The more revenue an employee generates for a business, the more he is rewarded through his incentive plan.

Businesses providing incentive plans have the advantage of seeing their bottom line rise in direct proportion to the sales their employees generate. In this sense, incentive plans can be self-supporting, in that the business essentially pays for performance. Employees who have the ability to positively impact their earning potential through incentive plans are more likely to be loyal to the company they represent.

This is especially true if incentive plans have residual value. For example, if an insurance company employee gets a bonus for signing up a new client, and then gets a residual bonus for every subsequent year that client renews, earnings can increase over the life of his employment. It becomes an advantage to the employee and employer for there to be longevity in the professional relationship.

Employees often look for new employment opportunities when they feel they are under-compensated or unappreciated. Incentive plans are a way of rewarding top-performing employees and showing them you appreciate their contributions to the business. The advantage to the employer is reduced turnover, which also results in time and money savings related to recruiting new hires.

Businesses may also attract more well-qualified candidates by offering incentive plans. When employees work together on team incentive plans, they establish a sense of camaraderie, pulling together for the common good. This can strengthen bonds between colleagues, managers and business owners. The advantage of a unified workforce is a more efficient, pleasant work environment for all.

It can also enhance regular work relationships between departments and co-workers, resulting in increased productivity. Lisa McQuerrey has been a business writer since In , she launched a full-service marketing and communications firm.

Jun 29,  · Incentive plans that reward employees for reaching pre-established goals provide encouragement and give staffers something to aim for. The advantage to the employer is increased levels of productivity -- and increased productivity also becomes an advantage for workers. Employee Incentive Programs offer one of the best ways to foster happy, motivated and productive employees who will aim to help you reach your company’s goals. These programs also convey the message to employees that you value and appreciate their hard work, dedication and loyalty. Employee incentive programs can eliminate this and can facilitate open communication among employees. Increase the profit of the company. This is the main reason why most companies have employee incentive programs.

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