Corporate incentive programs vary based on company type, budget, and goals. Common programs include travel, goal-oriented, fixed budget, and points-based. Rewards range from travel to electronics and are designed to boost morale and increase performance.
There are several corporate incentive programs, which vary depending on the type of corporation, budget and program planner. Corporate incentives are usually rewards given to employees to boost morale and increase job performance. Each company designs a customized plan, which usually includes defining requirements for those eligible to receive incentives, creating a budget that allows for financial incentives, and determining which type of incentives are most effective for employee performance. The most common corporate incentive programs are travel, goal orientation, fixed budget and points programs.
Travel-based corporate incentive programs reward executives who meet individualized criteria established by the company. Most companies use air, hotel, cruise and adventure incentives. Airline certificates are a reward that gives employees tickets and generally allows them to choose their destination. Hotel certificates are similar and companies often choose a worldwide valid hotel package to allow employees to plan their own travel. Adventure and cruise packages are generally more expensive because they are expense-paid vacations to exotic or adventure-themed locations.
Goal programs are designed to define accomplishments for employees and reward those who achieve goals set by the company. Rewards are usually based on company budgets and can include electronics, gift cards to stores or restaurants, and sometimes rewards as large as vehicles or timeshares. The downfall of this reward system is the inability to predict cost. If large numbers of employees are offered rewards, it is difficult to predict how many will reach the target and how much it will cost after the rewards are distributed.
Corporate incentive programs based on a fixed budget are often used by smaller companies to avoid unaffordable expenses. Companies often create a reward system that is only offered to a certain number of employees, and although goals are set, only a few win. This is a controlled system built into weekly, monthly or annual budgets.
Scoring programs are used to incentivize a variety of employee traits, including performance, behavior, organizational skills, and overall appearance. The duration of the points system is generally continuous, and companies set times and requirements for redeeming points for chosen rewards. This system encourages constant improvement by offering a variety of rewards and changing requirements frequently. While corporate incentive programs can vary, the goal is generally to increase profits by increasing office motivation.
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