Essay Paper on Incentive Plans
World leading well-developed companies state that their employees are their main value. They use special techniques that always keep their team spirit high and maintain their interest in working for the company, doing their best to achieve main objectives and goals. The most effective way to stir up employees’ interest, activity and creativity is to implement an incentive plan. This paper is designed to show how incentive plans relate to organizational objectives and how they are helpful in achieving company’s objectives. I’ll also make sure to provide relevant examples.
First of all, it’s necessary to define what an incentive plan is. Collins dictionary gives the following definition for “incentive” which relates to our topic: “an additional payment made to employees as a means of increasing production”. In modern management system, incentives appear to be indispensable, for they became a kind of a stimulus for employees and help them to improve their skills and general performance for company’s sake.
Motivation is an important factor which produces good effects both at the working place and in everyday life since high self-esteem of individual plus right motivation can produce miracles. A person becomes able to cope with any tasks and demands of the management, which is beneficial for the company, not to mention the employee.
Organization’s incentive plan must be a well-thought and well-grounded document which goes in line with company’s strategy. In other words, it should correspond to company’s current needs and objectives. Incentives are designed to stir up the productivity of employees. Specialists define two main types that should be taken into account when drawing up an incentive plan. There are incentive plans, based on improvement of personnel’s behavior , and those based on staff performance (pay-for-performance incentive plans) . Each of two types is designed to enhance company’s productivity, but here we should take into account company’s weak sides to choose one type of plan to be implemented.
To make the incentive plan work, in other words, to bring the company to reaching its goals and objectives, it’s necessary to inform the employees on the upcoming incentives, their conditions and requirements. The key point here is to make the staff understand that such incentive system will help them to show themselves better and create a kind of a competitive environment among them. Usually the result of incentive plan for employee means cash award, in rare occasions – job promotion, for company it’s always a benefit. The higher the level of motivation of employees – the higher the chances of the company to reach its goals and objectives .
As a bright example of successful implementation of incentive plans, I’d like to say a few words about Marcus Evans company. It has gained international recognition and respect of world leading companies as the best producer and organizer of international conferences, meetings and seminars in different spheres: business, pharmacy, ecology etc. And this is only the beginning of the list that enumerates the main activities of this company. The point is that this company gained such recognition in short term through the work of its employees who work effectively due to well implemented incentive plans.
For instance, the employees of the sales department of the company get commissions which depend on the number of realized sales. The best sales manager gets the reward – cash awards or opportunity to realize a business trip abroad or to go to the main company’s office in the UK for training. Apart from this, offices situated in different countries are engaged in a competition. The office with better performance gets a special reward and recognition among their colleagues from abroad. It’s also important to mention that such competition increases team spirit and reflects positively on general company’s performance.
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