In the approach to Christmas, what really incentivises employees?
Bonuses are not an effective form of employee motivation, according to new research from One4all Rewards. 78% of employees say they would not work significantly harder in exchange for a bonus equivalent to 10% of their annual salary.
Indeed, the research showed that even bonuses equivalent to 25% of annual salaries would only motivate just over half (59%) of workers.
In order for bonuses and cash rewards to incentivise employees, the 64% of UK employers who currently award them must think carefully about design and distribution to gain maximum impact.
However, in the run-up to Christmas, the research also examined effective alternatives to financial incentives – finding that 1 in 5 employees feel motivated to work harder by regular treats.
Another hugely popular form of benefit are those that make employees’ salaries go further, for example pension contributions, health insurance, savings on travel or food. Nearly a fifth (18%) of employees said that these incentives would encourage them to work harder.
Declan Byrne, UK managing director at One4all Rewards, comments: “From this research, it’s clear to see that while bonus culture is impactful, it isn’t always an effective driver of increased output or motivation for many employees. As it can be very expensive for businesses, this is an important learning for many UK employers to acknowledge.
“We would recommend employers clearly define their objectives for an incentive and benefit scheme, and find out which types of reward does and does not switch on the desired results in their employees, at the very initial stage. It is important to define the goals and the likely results from the outset.
“When used in this way, financial incentives can be really effectively utilised to ‘switch on’ employees to work harder - often with great results for the bottom line.”
Reward and House of Fraser for Business are running an exciting campaign in the countdown to Christmas, inviting you to 'get creative' with your staff rewards.
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