12.2. Motivation Through Incentives

Many companies use formalized incentives as a motivator. It is a typical sales or piecework model. Sell or make x number of units and here is your reward. This is a very effective technique and volumes of materials have been written on the subject, so we will not spend a lot of time on it here. One key point is to make sure you set the incentive targets carefully and correctly, because they could turn against you. Suppose, for example, that you establish tier 1 closure rate targets with incentives. Consider what employees may do to achieve those rates. If an agent sacrifices quality documentation or common courtesy with the customer to reach the target rate, you probably haven't successfully achieved your ultimate goal. Further, you must make sure checks and balances are in place so the system isn't abused, or so that employees don't game the system, as in the much-publicized futures trading business.

Other incentives often used include stock options, profit sharing, and perks such as paid parking, expense accounts, subsidies, day care, transportation, telecommuting, tuition, and training. Generally, for these incentives, the company has to establish programs on a company-wide basis, and the programs will usually be out of your control. If they don't exist, they are much more complex to implement than a simple after-the-fact reward. If your company does not have such programs, then you should certainly encourage the company to develop them, because many of your competitors do. These kinds of programs are very effective for attracting staff and, if the company is successful, can be very effective in motivating the staff to do whatever is possible to help the company.