What would motivate your employees to do a better job—a warning or a reward—if they complete a specific task?

The “carrot” has proven to be much more effective than the “stick.” People need to be recognized. When they are, they’re encouraged to be more productive.

A well-designed incentive program offers recognition and leads to increased productivity and sales, improved customer relations, and increased morale.

There are six basic steps to a successful incentive program.

1. Set fair objectives. Make objectives easy to understand and specific. The incentive program should be goal-oriented for a specific time. Discuss the objectives with your staff.

2. Measure results accurately. It’s easy to measure improved sales, but non-sales objectives are more difficult. If your objectives can’t be measured, restate them in measurable terms.

3. Communicate your goals clearly and regularly. People like to know what they’re trying to achieve and where they stand along the way. Let them know how they’re doing. Post charts showing success to date.

4. Choose rewards or incentives tailored to your participants. Be conscious of lifestyle habits. Choose incentives that serve as a daily reminder of a job well done: cash, travel, vacations, entertainment, appliances, jewelry, and electronics.

5. Celebrate achievements. Let your employees know what they achieved and who won what. You can hold an awards ceremony, post photos and awards on a bulletin board, or distribute a newsletter.

6. Incorporate incentive programs into your marketing plans. Incentives are measurable, cost-effective, and can dramatically impact your sales.

An incentive program costs practically nothing. Unless the objectives are met, the company doesn’t purchase the awards. If the awards are earned, then the incentive program becomes a win-win situation for both. Give every employee an equal opportunity to earn a prize. If everyone can win, then everyone is motivated. SME

Art Halloran is vice president of Sony Special Market Sales Division, Sony Electronics, Inc, a leader in the incentives industry for 30 years. 201-930-1000.

ACTION: Use incentives to motivate performance.