Thursday, June 3, 2010

How to Make an Incentive Meaningful

What makes an incentive meaningful? How can we add meaning and thus value to an incentive, regardless of the cost that is spent? For my part, I've found three dimensions that can help make any incentive more meaningful to a recipient:

Origin. Did you start with what is important to the person you are trying to motivate? There's no use offering a travel incentive to someone who doesn't want to travel or a nice watch to someone who already has four or five. By asking employees what things they value, you increase the odds of being on target. Lesson: Don't have the recognition committee select items from a catalog that employees will receive. Ask your employees directly what things they'd most value!

Choice. Is there variety and choice so that the person has a say in what they get? Whenever you provide choice to the recipient, you increase its value. Having a say in what the person receives is empowering and allows them to select something that best aligns with their interests, family situation, or personality. This applies to activities as well as merchandise. For example, giving someone additional time off increasingly is a more cherished incentive than a simple cash substitute such as a gift certificate. Lesson: Add choice points for employees whenever possible to make recognition and rewards more meaningful to those you are trying to motivate.

Context. Is the incentive presented in a way that adds to its value, making it truly an honor? It's the sizzle more than the steak that sets the tone and memory of any award. Lesson: Consider the context of awards presentation to increase its personal touch and relevance. Consider:
 
• Who presents the incentive? Is it someone the recipient holds in high esteem, (which often can be a colleague as much as the person's manager or someone higher in the organization)?

• Who is the incentive presented in front of? As a rule of thumb, public recognition in front of one's colleagues tends to be powerful—but not always the case, especially if someone is more shy or introverted. Check with the person!

• What words are said in the presentation? Is the achievement tied to a company value or larger goal everyone is working towards? Is a story told to show the obstacles that were overcome or creativity the honoree displayed? If done well, recognition sends a message to everyone who is present and not just the person being honored. It says through your actions that "these are the things that get noticed around here" and causes others to want to emulate those same behaviors or achievements.

Thus, a manager can obtain a benefit on several levels by verbally recognizing an employee, as follows: "John, thanks for working late last night to help us wrap up that proposal. I appreciate that you did it without being asked. It's that type of initiative that tells me you're really committed to our group, and it's exactly what we need to reach the goals we've all been aiming for this year."

By providing a context for an award or recognition item, you tie the item and event to a larger sense of meaning for the employee, thus potentially connecting one's job responsibilities to a larger framework, a deeper sense of commitment and group purpose, and ultimately to the overall mission of the organization.

Meaningful incentives are much more than the money that is spent. Think through the elements that can most add value to the overall experience and strive to make those part of your recognition activity.


Thanks to Bob Nelson is president of Nelson Motivation Inc., / June 01, 2010 /
IncentiveMag