Many bosses find them at a stage of wondering if their incentives they are giving to their employees are productive.

As experts in incentive planning and implementation, we’re answering the question in this blog post. So read on to find out more…

Are employees more productive with incentives? The short answer is yes.

By offering incentives, companies can create an environment within which employees feel valued and appreciated, resulting in higher quality output, better customer service, and increased profits. Incentives can ensure staff stay motivated and remain committed to their role in the company.

But there’s more to an incentive scheme than just that, so let’s explore this further.

Are Employees more productive with incentives?

The simple answer to this question is yes. Incentives can be powerful motivators for employees, leading to improvements in morale and productivity.

Studies have shown that employees feel a greater sense of job satisfaction when rewarded with incentives, like rewards or recognition.

When you reward your staff with incentives, it reinforces the idea that hard work pays off.

This encourages workers to strive harder and achieve more to reap the benefits of their efforts. It also helps create a positive working environment where everyone feels appreciated and valued.

In addition, providing employees with tangible incentives such as bonuses and gifts demonstrates that their efforts are worth something not only in monetary terms …but also in recognition from the management; this has been proven to increase employee satisfaction and engagement.

Finally, offering incentives to your staff can help increase morale and create a greater sense of loyalty among team members.

When employees see that their efforts are being rewarded, they become more motivated to work harder resulting in greater performance. This can lead to better performance from the entire team, which leads to increased job satisfaction for everyone involved.

What makes a good incentive for Employees?

The key is to choose rewards that are meaningful and will have a positive effect on morale.

Simple gifts such as vouchers, gift cards, or as in the case of Henry Ford, even time off might be enough to show your appreciation and suit some departments and individual roles.

What makes a good incentive for staff?

You could also provide bonuses or extra pay for those who go above and beyond their duties.

Incentives should be tailored to the department, or industry so that employees within those areas feel appreciated and valued by the company.

Do Employees work harder with incentives?

Incentives do motivate staff to work harder and increase productivity. Although productivity is not necessarily the same as performance. There is a difference between working hard and working smart.

Studies though have shown that when employees feel valued and receive recognition for their hard work, they tend to be more performance-driven, and therefore more productive …and willing to put in the extra effort.

This can result in higher quality output from staff, ultimately leading to increased efficiency, better customer satisfaction, and more profits for the company.

Do employees work harder with incentives?

Incentives also create a sense of loyalty among workers as they know that their efforts are appreciated.

This leads to greater job satisfaction …which not only has benefits such as higher employee retention rates but also allows companies to attract the best talent. People are attracted by the idea of working somewhere where their contribution is recognized and rewarded.

Finally, as we alluded to earlier, incentives can also be used as a tool to reward staff for going above and beyond their normal duties.

This could involve recognizing an employee’s work with a bonus, extra vacation days, or special privileges such as access to company events. Although we would discourage employers from offering discretionary incentives to staff.

Incentives are an effective way of motivating employees and ensuring that they remain productive and focused on the job at hand.

Types of incentives

  • Bonus or performance incentives
  • Educational opportunities, such as tuition assistance
  • Personal development sessions and seminars
  • Wellness programs (such as gym memberships, yoga classes, etc)
  • Company outings and/or team-building activities
  • Gifts or rewards (anything from gift cards to experiences)
  • Flexible work hours or telecommuting options
  • Recognition awards for outstanding achievements.

For a more in-depth list, check out our article on the 14 best incentive programs.

Which Employees should get an incentive?

Incentive programs can be deployed in many types of companies, roles, and situations.

But, incentive programs can and should ideally be tailored to each individual employee, depending on their job role and performance KPIs.

For example, a sales team member may benefit from an incentive that rewards them for making more sales or achieving targets faster than the competition.

Which employees should get an incentive

On the other hand, a customer service representative may receive an incentive for providing great customer service and positive feedback from customers.

It’s important to remember that incentives should always be fair across the whole team to ensure everyone is motivated equally.

Finally, it’s also essential to keep track of how successful your incentives have been so you can adjust them accordingly and make sure they are as effective as possible.

Here are our 14 ways to improve productivity in your organization.

How easy is it to implement an incentive scheme?

Implementing an incentive scheme can be relatively easy – provided you have carried out your research and have a clear plan.

We have an entire article on how to structure an annual bonus. But when implementing any incentive scheme, there are several similarities, so here’s a quick roundup of what is needed.

A man looking at his incentive program on his phone and seeing the rewards coming in.

First, define what type of incentives you want to offer and the conditions for receiving them. For example, do they require meeting certain goals? Are there any restrictions on the types of rewards available?

This all forms part of defining your exact goals.

Once you’ve established the criteria for delivering rewards, decide on how often they should be awarded and track progress regularly.

It’s also wise to solicit feedback from employees to make sure incentives are motivating as expected and providing positive results in terms of productivity gains or customer satisfaction.

Finally, remember to recognize employee achievements with tangible rewards such as gift cards, recognition awards, or bonuses to show workers that their efforts have not gone unnoticed.

Who implements incentive programs?

An incentive program can be as simple as keeping a spreadsheet, but unless they are very simple, they rarely work out to be fair, regularly updated, or provide long-term solutions. But there are incentive programs available that are easy to set up, as well as easy to use and maintain. has a proven track record in helping companies design, implement and maintain incentive programs across industries. Our team of experienced professionals will work with you to create an effective solution tailored to your unique needs.

We understand it can be difficult knowing where to start when creating an incentive program, so let our team provide guidance.

We have the experience and resources necessary to ensure that your program is effective, efficient, and rewarding for all participants. Get in touch with us today to find out.

Are Employees more productive with incentives? – Next Steps

We hope this has answered the question “are employees more productive with incentives.”

In summary, rewarding your staff with incentives is an effective way to show appreciation for their hard work while also encouraging them to reach higher levels of performance and productivity. It’s a win-win situation that benefits both the employer and the employee! If you want to learn more about incentives, read The Ultimate Guide to Sales Incentive Plans.

Want to know more about Incentives? Read one of our latest articles…

Build your bonus plan

Speak with an expert to create your bonus plan