Seven Questions for Incentive Program Set Up

I was on the phone with a new client the other day discussing the initial set up of her company reward program.  She, like many other human resources managers, was assigned the task of being her company's program administrator. This seems like a daunting task for anyone to undertake, let alone a person who already has a lot on her plate. As I explained to her though, all you have to do answer seven straightforward questions and keep in mind that most incentive programs can change over the course of a few years of results and feedback.

Question One:

Determine whether the program will be paper-based, online-based or a combination of both.

Depending on the demographics of the incentive program's audience, this question should be carefully considered. If the recipients have internet access at work and/or home, then an online or combination program will best suit this audience. If the recipients might feel more comfortable with a paper-based program, then I would recommend using the more traditional method.

Question Two:

Decide on the level of administrative capabilities and reporting the program should provide your company.

The size of your company may determine your need for reporting. Larger companies may choose to have an employee at each location that can look up user information and run reports. Alternatively, smaller companies could choose to have monthly order status reports sent.

Question Three:

Distinguish the goals and criteria that must be met for points to be awarded.

Incentive programs can include any goals that encompass any desired behavior for employees. If the goal of the incentive program is to reduce absenteeism and motivate employees, then points could be awarded for every 6 months of perfect attendance. In addition, participants may earn points on their anniversary, when they are recognized for an outstanding performance or when they otherwise exceed expectations. Keep in mind that many companies will add on goals as the program progresses to help keep it fresh and relevant.

Question Four:

Establish a program budget and the points to be awarded for each goal that is attained.

Goals will have corresponding number of points and should be established so that the program remains in within a desired budget. If multiple point earning opportunities are available, then I recommend that participants should be able to redeem their points for a gift in the first level of merchandise within the first three months. This guideline will help to make sure that participants are involved in the program and can see the tangible results of their efforts right off the bat.

Question Five:

Schedule an implementation date for the program.

Most programs are able to kickoff within a few business days, depending on the size of the program. Some clients will request the program be prepared and then will have a ceremony or dinner to announce the kickoff of the program. Also, if the program is started after the fiscal year beings, I advise that deserving employees be retro-rewarded so that no one is forgotten.

Question Six:

Decide if you would like to have any special artwork or image integrated into the program.

Modern incentive programs have company logos or images incorporated into the presentation of the program. In addition, any personalization that is desired for individual paper packets, emails and other communications should be decided as well. This is a personal touch that will add to the enjoyment of the program.

Question Seven:

Decide how to communicate the incentive program initially and in the future.

Communicating program information to the individuals eligible for participation is an important aspect of setting up an effective and relevant incentive program. Participants need to understand how the program works and what goals must be achieved to earn rewards. Posters, emails, letters, presentation packages and various other media can be used to communicate an incentive program to participants.