Performance incentives Something that increases the frequency of an employee action is a Incentive. Whether something is a Incentive or not depends entirely on its effect on employee behavior Incentives increase the chances that a performance will be repeated. Incentives help one manage by: Improving an employee's performance to what you expect. Getting an employee to repeat a performance that met or exceeded your expectations. Helping good performances to happen more often. Helping to create a more pleasant work environment, one where Incentives are used more frequently than discipline to manage employee behavior.

Two common types of dysfunctional Incentives are those that: Incentivise undesirable behaviors - This describes a situation where the behavior you don't want to see is more strongly Incentivised than the behavior you do want to see. Punish good behaviors - This describes a situation where, instead of Incentivising a good behavior, something exists that punishes the employee for doing the right thing.

Incentivising desirable behaviors Remove the Incentive for the undesirable behavior. Increase the strength of the Incentive for the desirable behavior. Punish the undesirable behavior. Remove the punishment for desirable behavior

Selecting the Right Incentive When an employee's work is not influenced by an Incentive being given, it's probably because employee may not be interested in the Incentive itself How to find Incentives that fit The first key to finding effective Incentives is having a large no options for Incentives being available Recognition Praise Certificate of accomplishment Formal public recognition Informal acknowledgments (pats on the back) Letters of appreciation Publicity (mention in the company newsletter) Awards Being selected to represent department at meetings

Job Tasks Assignment of new duties Relief from duties the employee doesn't like More frequent assignment of duties the employee likes Assignment of partners the employee likes to work with Frequent Approval of job-related requests Opportunity for advanced training Job Responsibilities Opportunity for more self-management More authority to decide or implement More frequent decision-making or participation in decision- making More frequent requests to provide input for decisions Greater opportunity to select own goals or tasks Greater opportunity to set own priorities Greater access to information

Tangible Incentives Merit increases Cash bonuses Prizes Lunch paid for by the company Company donations to charity in the employee's name Paid trips to professional meetings Status Indicators Larger work area Promotion Supervise more people Social Activities

Receive newer or more equipment Status symbols (window, carpet, nameplate, plants, better desk) Invitations to higher-level meetings New title Personal Activities Taking a longer break or receiving additional breaks or longer lunch times Leaving work earlier Time off with or without pay Privileges (phone calls, opportunity to travel, reserved parking) Engaging in creative activities (work on inventions or publications)

Talking to fellow employees Going to lunch with the group Going to company outings or parties Going to company-organized recreation activities Talking with the top boss Having the boss listen with interest Dinner (lunch or just coffee) with the boss and spouse Relief from Disliked Policies or Procedures Exempt from selected company control procedures Exempt from close supervision Relief from Disliked Work Environment Better lighting Less noise Transfer from disliked co-workers or manager Move to warmer/cooler work area Move closer to restroom, cafeteria or coffee facilities

Delivering Incentives Effectively If-Then Principle: As soon as possible (ASAP) Principle Variety Principle Sometimes Principle Sometimes Incentives are especially suited for Incentivising performances that occur frequently

How to Deliver a Incentive 1. Describe exactly what was done well. 2. Describe how your organization or a customer benefited. 3. Deliver the Incentive using the if-then, ASAP, variety and sometimes principles.